Friday, February 26, 2010
First Time Buyer....Should I Consider a Foreclosure?
Well that is a loaded question. In Mecklenburg County which is mostly made up of Charlotte and surrounding smaller towns foreclosures are on the rise. In fact, I read an article a week or so ago that mentionedthat Charlotte is the highest foreclosure rate in all of North Carolina. Is that all bad? No, not really. Unfortunately, people that are losing their homes right now bought them at the peak of the Real Estate market. Considering we are now at or close to the bottom of the Real Estate market (depending on what report you look at) in Charlotte, the values are there lowest.
I know when I have a buyer considering the purchase of a foreclosure in the Charlotte area I do not discourage it in any way. I find that these type of bank owned homes are relatively easy to negotiate with and generally speaking you can receive a good value for them. Does it mean it is right for everyone to consider a foreclosure? No. There are some drawbacks and other things to consider when you look at one.
First, when you purchase a foreclosure home you are buying the home AS-IS. Now, it does not necessarily mean you have no rights. In North Carolina when you purchasea foreclosure home you have a right to a home inspection. During the time frame you and the bank have agreed upon, you can have an inspector come out to the property and do a thorough inspection of the property. Once you receive his report you have the option of backing out of the deal as long as you are within the time frame agreed upon by you and the bank. Some people are handy type of people (I am not one of them) or have friends or relatives that are and can do it or help them get the items fixed. Others will feel the deal on the house warrants the cost of a few repairs they may need to make to the home.
Second, how is the value in relation to the other homes in the area. Is the neighborhood influx with foreclosures? Or is this just an isolated one in what is a rather stable neighborhood otherwise. How long has it been on the market for sale? Because on the face value the deal may seem good in comparison to other homes that are for sale. But, what if the neighborhood has been or is being over run with foreclosures or short sales? If they have not sold yet, the deal you are receiving may not be the best deal. As more and more homes enter that foreclosure status banks are looking to liquidate them. In Charlotte there is major concern over values of homes with so many people in danger of losing their homes right now. A home thatis for sale in the Charlotte area for over 30 days that the bank owns starts to become a major liability. Thus the bank will tend to be more aggressive in selling that home. And the longer it is for sale the better the deal can become.
For example, I worked with a buyer that looked at a bank owned home in Charlotte. On the face of it the deal was a good deal. In the process of negotiations we came to an impasse of what my clients were willingto spend and what the bank was going to accept. Problem was house was only on market for 10 days when we put the offer in. Well, they walked away and looked around some more. A little over a month went by and they asked about the original house we looked at. Guess what, it was still for sale by the bank. This time we started less and ended up getting to an agreement on terms for less than we had originally offered to pay 30 days prior.
Is this common. No. I am not sure how other areas of the country are faring. I do know in the Charlotte area well priced foreclosures in good move in condition are selling relatively quickly. I have seen homes come on the market for sale and find out the next day it is sold.
So the question of whether a foreclosure is the right first time home depends on you... Can you receive a deal better than one for sale that is not in foreclosure maybe. You have to weigh the costs of repairs and the condition of the home against what you are paying for it and decide for yourself if it is worth the savings.
Dave diCecco
Realtor/Agent
www.davedicecco.com
I know when I have a buyer considering the purchase of a foreclosure in the Charlotte area I do not discourage it in any way. I find that these type of bank owned homes are relatively easy to negotiate with and generally speaking you can receive a good value for them. Does it mean it is right for everyone to consider a foreclosure? No. There are some drawbacks and other things to consider when you look at one.
First, when you purchase a foreclosure home you are buying the home AS-IS. Now, it does not necessarily mean you have no rights. In North Carolina when you purchasea foreclosure home you have a right to a home inspection. During the time frame you and the bank have agreed upon, you can have an inspector come out to the property and do a thorough inspection of the property. Once you receive his report you have the option of backing out of the deal as long as you are within the time frame agreed upon by you and the bank. Some people are handy type of people (I am not one of them) or have friends or relatives that are and can do it or help them get the items fixed. Others will feel the deal on the house warrants the cost of a few repairs they may need to make to the home.
Second, how is the value in relation to the other homes in the area. Is the neighborhood influx with foreclosures? Or is this just an isolated one in what is a rather stable neighborhood otherwise. How long has it been on the market for sale? Because on the face value the deal may seem good in comparison to other homes that are for sale. But, what if the neighborhood has been or is being over run with foreclosures or short sales? If they have not sold yet, the deal you are receiving may not be the best deal. As more and more homes enter that foreclosure status banks are looking to liquidate them. In Charlotte there is major concern over values of homes with so many people in danger of losing their homes right now. A home thatis for sale in the Charlotte area for over 30 days that the bank owns starts to become a major liability. Thus the bank will tend to be more aggressive in selling that home. And the longer it is for sale the better the deal can become.
For example, I worked with a buyer that looked at a bank owned home in Charlotte. On the face of it the deal was a good deal. In the process of negotiations we came to an impasse of what my clients were willingto spend and what the bank was going to accept. Problem was house was only on market for 10 days when we put the offer in. Well, they walked away and looked around some more. A little over a month went by and they asked about the original house we looked at. Guess what, it was still for sale by the bank. This time we started less and ended up getting to an agreement on terms for less than we had originally offered to pay 30 days prior.
Is this common. No. I am not sure how other areas of the country are faring. I do know in the Charlotte area well priced foreclosures in good move in condition are selling relatively quickly. I have seen homes come on the market for sale and find out the next day it is sold.
So the question of whether a foreclosure is the right first time home depends on you... Can you receive a deal better than one for sale that is not in foreclosure maybe. You have to weigh the costs of repairs and the condition of the home against what you are paying for it and decide for yourself if it is worth the savings.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Thursday, February 25, 2010
First Time Buying...Should I look at a Short Sale?
It all depends.... With the tax credit for first time buyers due to expire soon the question looms; Is a Short Sale worth the look? One thing you need to ask yourself is can I wait? Unfortunately right now with the influx of short sales on the market with the economy struggling to get out of a recession and home values plummeting to historic lows in comparison to a few years ago banks are over run with short sales.
I read an article recently that stated Mecklenburg County is the largest area in North Carolina for foreclosures pending. That means record levels of people are attempting to sell their home via a short sale to avoid foreclosure. Typically, with a short sale your response time can be anywhere from three weeks to months depending on the bank. Some banks will work with you and counter your offer. Other banks will just say no. Then if you want to increase your offer you are going through the process all over again. I have dealt with both buyers and sellers on Short Sales. I have had some great luck with them and some horrific luck right now. I was blessed on one of my listings that the bank ordered a BPO(Broker Price Opinion) upfront and when an offer came in i was able to have an answer back within forty eight hours and within five days had the deal negotiated and approved by the bank. On the other end, I have a buyer who has an offer in on a home in Charlotte right now that we are still waiting for the bank to respond....it has been 5 MONTHS. If you are looking to take advantage of the tax credit and need to be under contract by April 30, 2010 have your agent check with the listing agent before you put in an offer to see where in the process they are and who the bank is. Generally speaking, most agents should know based on the bank what the response time should be on average.
Are there deals to be found out there right now...definitely. I know in the Charlotte area buyers are having a lot of choices and good deals are found in just about every price range. I just warn my buyers up front. if you are looking at a short sale and thinking of putting an offer in; here are the possible ramifications of waiting. I give them the information and let them decide what is best suited for their needs.
Now it does not mean that if I put an offer in on a short sale I cannot stop looking. I advise my clients to continue to look at properties just in case. you just never know what might come on the market in that time frame as well. I will continue to send listings to them that meet the criteria they desire and show homes to them that they want to look at while we wait for an answer. The potential of losing the $8000.00 tax credit is large. I always advise my clients to have a plan B in place just in case.
Also, while you are waiting for a response back from the bank another offer may come in. The other offer could be better than yours or worse. The bank may negotiate with both of you or just one of you. Unfortunately, until the bank accepts your offer or negotiates a deal that you both accept anything can happen. Just because you are the first offer does not mean you ahve first right to the home. too many times when I explain this to first time buyers in the Charlotte area they have a stunned look. They never realize that they could have an offer pending with a bank for weeks or months and someone else can come in at the last moment and put a better offer in and they are out.
As we get closer to the deadline to be under contract, that window of waiting becomes smaller. As of the writing of this post you have only 65 days to be under contract on a home to qualify for the tax credit. You do not have to close to July 1, 2010 but need to be in agreement on the purchase of a home by April 30, 2010. So, do your due diligence and consider the short sale but make sure you know how long you may be waiting for a response back from the bank.
Dave diCecco
Realtor/Agent
www.davedicecco.com
I read an article recently that stated Mecklenburg County is the largest area in North Carolina for foreclosures pending. That means record levels of people are attempting to sell their home via a short sale to avoid foreclosure. Typically, with a short sale your response time can be anywhere from three weeks to months depending on the bank. Some banks will work with you and counter your offer. Other banks will just say no. Then if you want to increase your offer you are going through the process all over again. I have dealt with both buyers and sellers on Short Sales. I have had some great luck with them and some horrific luck right now. I was blessed on one of my listings that the bank ordered a BPO(Broker Price Opinion) upfront and when an offer came in i was able to have an answer back within forty eight hours and within five days had the deal negotiated and approved by the bank. On the other end, I have a buyer who has an offer in on a home in Charlotte right now that we are still waiting for the bank to respond....it has been 5 MONTHS. If you are looking to take advantage of the tax credit and need to be under contract by April 30, 2010 have your agent check with the listing agent before you put in an offer to see where in the process they are and who the bank is. Generally speaking, most agents should know based on the bank what the response time should be on average.
Are there deals to be found out there right now...definitely. I know in the Charlotte area buyers are having a lot of choices and good deals are found in just about every price range. I just warn my buyers up front. if you are looking at a short sale and thinking of putting an offer in; here are the possible ramifications of waiting. I give them the information and let them decide what is best suited for their needs.
Now it does not mean that if I put an offer in on a short sale I cannot stop looking. I advise my clients to continue to look at properties just in case. you just never know what might come on the market in that time frame as well. I will continue to send listings to them that meet the criteria they desire and show homes to them that they want to look at while we wait for an answer. The potential of losing the $8000.00 tax credit is large. I always advise my clients to have a plan B in place just in case.
Also, while you are waiting for a response back from the bank another offer may come in. The other offer could be better than yours or worse. The bank may negotiate with both of you or just one of you. Unfortunately, until the bank accepts your offer or negotiates a deal that you both accept anything can happen. Just because you are the first offer does not mean you ahve first right to the home. too many times when I explain this to first time buyers in the Charlotte area they have a stunned look. They never realize that they could have an offer pending with a bank for weeks or months and someone else can come in at the last moment and put a better offer in and they are out.
As we get closer to the deadline to be under contract, that window of waiting becomes smaller. As of the writing of this post you have only 65 days to be under contract on a home to qualify for the tax credit. You do not have to close to July 1, 2010 but need to be in agreement on the purchase of a home by April 30, 2010. So, do your due diligence and consider the short sale but make sure you know how long you may be waiting for a response back from the bank.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Wednesday, February 24, 2010
Charlotte Boast Wide Choices for the Sports Fan
I deal a lot with people looking to relocate to the Charlotte Area. In my discussions I often am asked what is there available for sporting events to watch. I tell people that your choices for sporting ervents spans all the seasons and times of the year.
Charlotte is home to a NFL franchise(Carolina Panthers), A NBA franchise (Charlotte Bobcats),and minor league hockey (Charlotte Checkers). So looking for some sporting events to bring the family to; your choices inside of Charlotte are good.
In the suburbs of Charlotte there is a minor league baseball team as well. In addition you have two of Nascar's largest races held here at the Lowe's Motor Speedway each year. One is held on Memorial Day weekend and the other in October. For Nascar fans there may not be much of a better time than attending one of the races at Lowe's Motor Speedway.
For the golf fan there is the Quail Hollow Championship held here every year. A top attraction that always attracts the largest names in golf to it...Always a great event to go and watch..
Just North of Charlotte you are home to the US National White Water Center. Home to the only sanctioned slalom race sanctioned by the International Canoe Federation in North America.
So, as you can see Charlotte area offers something for just about every type of sports fan.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Charlotte is home to a NFL franchise(Carolina Panthers), A NBA franchise (Charlotte Bobcats),and minor league hockey (Charlotte Checkers). So looking for some sporting events to bring the family to; your choices inside of Charlotte are good.
In the suburbs of Charlotte there is a minor league baseball team as well. In addition you have two of Nascar's largest races held here at the Lowe's Motor Speedway each year. One is held on Memorial Day weekend and the other in October. For Nascar fans there may not be much of a better time than attending one of the races at Lowe's Motor Speedway.
For the golf fan there is the Quail Hollow Championship held here every year. A top attraction that always attracts the largest names in golf to it...Always a great event to go and watch..
Just North of Charlotte you are home to the US National White Water Center. Home to the only sanctioned slalom race sanctioned by the International Canoe Federation in North America.
So, as you can see Charlotte area offers something for just about every type of sports fan.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Tuesday, February 23, 2010
Mass Transit in Charlotte----Up to Par?
I was asked recently from a buyer moving here from New York City to the Charlotte area about the mass transit system in Charlotte and surrounding towns. He mentioned that living in New York City he has not needed a car for the past ten years. It made me think. Coming here from Connecticut I remember taking a lot for granted when it came to public transportation. it was nothing to hope on the metro north and be in the city. Then between the subway and taxi cabs getting around the city was easy... You also took your life in your hands driving in New York City....but that si another story.
Charlotte, North Carolina is a large and growing area. Home to the second largest banking centers in the United States only to New York. With the cost of living in Charlotte signifcantly lower than that in New York and the affordability substantially higher a lot of people have considered the move to Charlotte. But how do you get around Charlotte?
Charlotte is home to the CATS system. CATS stands for Charlotte Area Transit System. Between Atlanta and Washington DC; this is the largest transit system in place. Home to over 70 different routes extending from Rock Hill, SC to Gastonia and up through Lake Norman area. One thing that has impressed me with the CATS system is there ever changing to stay up with the current influx of people. As the Charlotte area has grown in population CATS has grown with them. In my daily travels I am consistently seeing buses going up and down major thorough ways and through some side areas picking up and dropping off people daily.
Charlotte also about two years ago opened up the LYNX service. A commuter light rail system that runs from the I485 corridor at South Boulevard all the way to uptown. There are numerous discussions of expanding it to other areas and branching it out. Right now though, it offers an inexpensive alternative to getting to uptown. With free parking at their parking decks the light rail has made going to uptown very convient. It has over 15 stops along the way and has timed it to run with bus departures at the stops. So, no matter where you need to go in uptown the LYNX and bus line will connect you there.
That gives you a little bit of history of the what the mass transit system in Charlotte Area is like. Is it up to par with the population growth? In comparison to other large cities probably ..however; it is getting better each and every day as i get the impression that they are never satisfied. There are constantly adding and changing to adapt to the influx of people and trying to make it more convient for people to take Mass transit thus clogging up less of the roadways... With action plans in place the Transit system is ever changing and growing to meet the demands of the people commuting in and out of Charlotte on a daily basis.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Charlotte, North Carolina is a large and growing area. Home to the second largest banking centers in the United States only to New York. With the cost of living in Charlotte signifcantly lower than that in New York and the affordability substantially higher a lot of people have considered the move to Charlotte. But how do you get around Charlotte?
Charlotte is home to the CATS system. CATS stands for Charlotte Area Transit System. Between Atlanta and Washington DC; this is the largest transit system in place. Home to over 70 different routes extending from Rock Hill, SC to Gastonia and up through Lake Norman area. One thing that has impressed me with the CATS system is there ever changing to stay up with the current influx of people. As the Charlotte area has grown in population CATS has grown with them. In my daily travels I am consistently seeing buses going up and down major thorough ways and through some side areas picking up and dropping off people daily.
Charlotte also about two years ago opened up the LYNX service. A commuter light rail system that runs from the I485 corridor at South Boulevard all the way to uptown. There are numerous discussions of expanding it to other areas and branching it out. Right now though, it offers an inexpensive alternative to getting to uptown. With free parking at their parking decks the light rail has made going to uptown very convient. It has over 15 stops along the way and has timed it to run with bus departures at the stops. So, no matter where you need to go in uptown the LYNX and bus line will connect you there.
That gives you a little bit of history of the what the mass transit system in Charlotte Area is like. Is it up to par with the population growth? In comparison to other large cities probably ..however; it is getting better each and every day as i get the impression that they are never satisfied. There are constantly adding and changing to adapt to the influx of people and trying to make it more convient for people to take Mass transit thus clogging up less of the roadways... With action plans in place the Transit system is ever changing and growing to meet the demands of the people commuting in and out of Charlotte on a daily basis.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Monday, February 22, 2010
Ready to Write an offer....How Much do I Offer?
I decided to write about this after a first time home buyer and I were out looking at homes and they wanted to put an offer in on a home. I was amazed to find out he did not know that I provide this information to him. Family memebers who had given him advice (mostly good) failed to inform him that the Real Estate agent should provide you with this information. In fact, his brother purchased a home a little while ago and said he never got this information from his Realtor whne he put an offer in on his house.
You are out looking at homes. it may be the first day out or the tenth day out...no matter. You have found the home you want to place an offer on and make your first home.... How do you know what to ask for the home? Is is over priced? is it under priced?
AS a Realtor, we have an obligation to you our clients, to provide you with the information you need to make a smart, educated offer on the home. I hear a lot of times from home buyers; "it is a buyer's market, I should be able to offer them significantly less." Not always the case. Everyone, be it the seller, the bank on a short sale, or the bank in a foreclosure will have a bottom line they will accept for the home.
Whenever a client of mine wants to make an offer on a home...I give them the homes in the neighborhood or close proximity that haved closed in style and square footage in the last six months. I try to give them at least 3 homes. I also tell them what is active and what the price is and how long it has been on the market. A home that is over priced may be sitting on the market for a year or longer...... With this information, I go over with them the average sale prices and and average asking prices. From there we come up with a number that is acceptable for them to purchase the home.
Now do not get me wrong, just becasue you are willing to pay X amount for the home does not mean you start there. From that number we devise an offer price less giving us room to move up. You need to make sure you are comfortable with the price you feel you will pay for the home if you have to come up and happy if they accept your offer initially.
So, make sure you have this information before you place an offer in on a home.
Dave diCecco
Realtor/Agent
www.davedicecco.com
You are out looking at homes. it may be the first day out or the tenth day out...no matter. You have found the home you want to place an offer on and make your first home.... How do you know what to ask for the home? Is is over priced? is it under priced?
AS a Realtor, we have an obligation to you our clients, to provide you with the information you need to make a smart, educated offer on the home. I hear a lot of times from home buyers; "it is a buyer's market, I should be able to offer them significantly less." Not always the case. Everyone, be it the seller, the bank on a short sale, or the bank in a foreclosure will have a bottom line they will accept for the home.
Whenever a client of mine wants to make an offer on a home...I give them the homes in the neighborhood or close proximity that haved closed in style and square footage in the last six months. I try to give them at least 3 homes. I also tell them what is active and what the price is and how long it has been on the market. A home that is over priced may be sitting on the market for a year or longer...... With this information, I go over with them the average sale prices and and average asking prices. From there we come up with a number that is acceptable for them to purchase the home.
Now do not get me wrong, just becasue you are willing to pay X amount for the home does not mean you start there. From that number we devise an offer price less giving us room to move up. You need to make sure you are comfortable with the price you feel you will pay for the home if you have to come up and happy if they accept your offer initially.
So, make sure you have this information before you place an offer in on a home.
Dave diCecco
Realtor/Agent
www.davedicecco.com
Sunday, February 21, 2010
Home buying Mistakes after my offer has been Accepted
I wrote a blog yesterday outlining some of the common mistakes first time home buyers make when looking for a home and how to try and avoid them. Well yesterday I came across a first time buyer who had put an offer on my listings and now cannot close. The buyer's agent never fully explained the whole process to the buyer and now the buyer is backing out of the transaction. No real big deal accept we have had the house off the market for four weeks right now.
So, you have an offer that has been accepted by the seller, now what? Well, your agent should have informed you that you need to do a home inspection on the property. A good Real Estate agent will not say call Joe I use him all the time. I give each of my clients brochures on three home inspectors that I or fellow colleagues have used. And only ones that I feel are completely competent in what they do. This is a huge part of the home buying experience. When you and your Realtor are looking at a home you may know cosmetic items wrong or things you can see with the naked eye. However; a good home inspector will tell you what is wrong in the hidden spots not easily seen or sometimes overlooked by a buyer. Once the home inspection is done and you get a copy of it go over it with you Real Estate agent. You should have a contingency clause in the contract that allows for "necessary repairs" to the home. Make sure you are either completely comfortable with the home after the inspection, or ask for the seller to do the repairs to the home. If you can not come to agreeable terms walk away....trust me it is best for both parties at that point.
Okay you have cleared the home inspection process, what is next. I ask the listing agent to get me up front after the offer has been accepted a breakdown of the average costs of utilities to run that home. I want to know what there average electric bill is, gas bill, water bill, and any other abnormal fluctuating charges they may have on a monthly basis. A lot of times when you are buying your first home you are upgrading in size from where you are living now. With that upgrade comes increase in your utilities. Every single one of my buyers has told me I never thought of that. make sure you are 100% comfortable not only with the mortgage payment but the increase in your utilities. No one wants to be eating Ramen noodles so they can pay the utilities because you did not know.
Last thing I tell each and every one of my buyers is to order a survey of the property. You do not want to move into the new home to find out your neighbor has been encroaching on your property lines. These are issues that can usually be cleared up before closing. Besides if you want to do any improvements to the yard; better makes sure you know where you can go before you start.
Dave diCecco
Realtor/Agent
www.davedicecco.com
So, you have an offer that has been accepted by the seller, now what? Well, your agent should have informed you that you need to do a home inspection on the property. A good Real Estate agent will not say call Joe I use him all the time. I give each of my clients brochures on three home inspectors that I or fellow colleagues have used. And only ones that I feel are completely competent in what they do. This is a huge part of the home buying experience. When you and your Realtor are looking at a home you may know cosmetic items wrong or things you can see with the naked eye. However; a good home inspector will tell you what is wrong in the hidden spots not easily seen or sometimes overlooked by a buyer. Once the home inspection is done and you get a copy of it go over it with you Real Estate agent. You should have a contingency clause in the contract that allows for "necessary repairs" to the home. Make sure you are either completely comfortable with the home after the inspection, or ask for the seller to do the repairs to the home. If you can not come to agreeable terms walk away....trust me it is best for both parties at that point.
Okay you have cleared the home inspection process, what is next. I ask the listing agent to get me up front after the offer has been accepted a breakdown of the average costs of utilities to run that home. I want to know what there average electric bill is, gas bill, water bill, and any other abnormal fluctuating charges they may have on a monthly basis. A lot of times when you are buying your first home you are upgrading in size from where you are living now. With that upgrade comes increase in your utilities. Every single one of my buyers has told me I never thought of that. make sure you are 100% comfortable not only with the mortgage payment but the increase in your utilities. No one wants to be eating Ramen noodles so they can pay the utilities because you did not know.
Last thing I tell each and every one of my buyers is to order a survey of the property. You do not want to move into the new home to find out your neighbor has been encroaching on your property lines. These are issues that can usually be cleared up before closing. Besides if you want to do any improvements to the yard; better makes sure you know where you can go before you start.
Dave diCecco
Realtor/Agent
www.davedicecco.com
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