Available Housing Inventory In Charlotte, NC. Decreasing Substantially in 2011

Housing inventory is a good indicator of the housing market. generally this time of the year there is less inventory than the spring and the summer because people do not want their homes showed during the holiday's. However; the trend of available inventory has even the skeptics scratching their heads right now. There is a large consensus that the housing market did not begin it's crash until 2008. Prior to that we were in what they called a housing boom. During the time to available homes for sale in Charlotte, NC hovered between 7,000 to 8,000 homes on average for sale during any given month. With the amount of people out looking it was not easy to find a good deal and think about it...if you did that chances are you would have lost out on the house. Well, I like to look at numbers and I crunch them all day everyday trying to get a home priced right to list and help a buyer get a good fair deal on the buying side. One number I have been tracking that seemed to me to defy what I heard on the news was the inventory levels of homes available in Charlotte, NC. During the peak of the housing crash we were hovering around 10,000 homes available for sale. that was an increase of over 30% from the best days.... Thus the collapse and with it the housing prices have dropped with it. Thus making it a buyer's market. However; a trend seems to be happening (mostly in the past year). Housing inventory has decreased dramatically. In the last twelve months through September 2011 the available housing inventory has dropped by 16.8% to an average of 7442 homes for sale.... This trend downwards is a positive sign for the housing market... there are pessimists that will say it is a true indication...But do numbers lie? Dave diCecco Realtor/Broker www.davedicecco.com

What Is The Average Time Frame For A Short Sale In Charlotte, NC.?

Short sales are by definition when the bank accepts to take less for the house than what is owed on the home. However; there is nothing short with a short sale in terms of time frame. A lot of short sales depends on the bank that has them. in addition to who the bank is the amount of liens on the house play a vital role in the process as well... Are you dealing with one bank and just a mortgage? or are you dealing with multiple banks and various mortgages and liens on the house? Your time frame for a short sale is dictated by those factors as well as the bank itself. First, if you are dealing with one bank and the home has only one lien on it the average time from an offer being sent into the bank and the bank responding usually takes from 45 to 60 days. This is an average. it can take a lot longer depending on the bank and how accurate your information you sent in was...If you are missing paperwork the time frame increases because you have to fill in the blanks (so to speak) before they will assign it to a negotiator. I have dealt with banks that have taken up to six months and longer for a response as well...some Realtors in the Charlotte area will avoid dealing with those banks all together... It depends on the bank you are dealing with.... If there are multiple liens on a property it gets a little more complicated. because after you have one negotiated out you have to go to the other liens and make sure they will accept the dollar amount the first lien is offering them. They are not obligated to accept any amount the first lien has offered... however; if you have done it correctly and stated your claim properly then you can usually get the second lien to accept. The time frame is also dictated by how quickly the seller responds and sends to the bank the necessary information to the bank. Everyday that they delay in getting the information to them adds time to a file and decreases your chances of getting a quick resolution. So, if you are considering selling your home and have to short sale be prepared to provide the bank with the necessary documents supporting your income and bank accounts. The quicker you provide the information the easier it will be for the bank and your Realtor to negotiate on your behalf. If you are looking to buy a short sale in the Charlotte, NC. area be prepared when you look at the house to wait upwards of 60+ days before you receive an acceptance or counter offer back. If you can wait the time frame out the chances are you can get the house for a fair value (something the bank would sell the house for if it were a foreclosure). Dave diCecco Realtor/Broker www.davedicecco.com

Charlotte, NC. Short Sales--You Need A Hardship To Qualify

With short sales still dominating the market in Charlotte, NC. there is a saying that if you are not behind on your monthly payments you can not do a short sale....This is totally wrong. Granted most people that are contemplating short sales are behind on their mortgage and circumstances have led them to that option in lieu of losing their home to foreclosure. The truth is that in order to qualify for a short sale one needs to show a hardship that was not their before. One example of hardships are loss of job. This is the most common one among families in the Charlotte, NC. area that are looking to do a short sale. With unemployment still relatively high they don't make enough with unemployment to carry the existing mortgage payment. they dwindle through their savings account and retirement to maintain their home in the hope that they will secure a job soon and replenish it...Unfortunately that time never comes. Another one is that you need to move for a job. I have had a few of these situations in the past year. Either they lost a job or were told to move for their job and the company would not help them with relocation to another area. They are unable to maintain a new residence and keep up with the existing mortgage payment...and they know the house is worth less than they owe on it. Third type of hardship that is common is medical issues.... This is an unfortunate one that can catch anyone off guard. But medical issues that hinder your health and affordability of a house can be a sufficient reason for a short sale. A fourth one that I have seen a lot of lately is to take care of elderly parents who are unable to care for themselves anymore. With the cost of assisted care so high they cannot afford to place them in a home. So the only option is to move in with their parents in order to help make their last few years as enjoyable as possible these are just four examples of some of the types of hardships that can be used for a short sale. There are more than this. these are just the most common ones. But if you are contemplating a short sale and you make enough money to pay the mortgage and the reason you want to short sale is because of the value of your home the bank will reject your application. The difference is the banks have the right to say NO. mainly because they are looking at this as an alternative to you losing the house through foreclosure. With a foreclosure there is a lot of red tape and paperwork that is involved. In addition it costs the bank significantly more than if they were able to get the home sold before hand....but they are looking at all the financial records and reason why and deciding form that whether you qualify for a short sale or not. I have had families want to short sale because of the loss of equity and were willing to fall behind...However; banks will look at your financial records and pay stubs and if they feel you can make the payment. So, be sure that you have to short sale or you will lose the house or you will not be able to get the bank to approve a short sale. Dave diCecco Realtor/Broker www.davedicecco.com

Why Are Charlotte, NC. Short Sales A Good Deal?

There are a lot of homes for sale...In Charlotte, NC. approximately one third of all sales this year have been either bank owned or short sale homes....So why are they such a good deal? Are they really a good deal. A short sale has the potential to be a great deal for the buyer and the seller. The buyer can get a home they want at bank owned pricing...The seller can sell the home without going through a foreclosure. But there are certain things to remember when looking to buy a short sale home....If it is to good to be true then it probably is. Most Realtors start the price of the home at fair market value and then begin the decrease the price accordingly if there are no offers until they get to a certain point where they receive an offer on the house. The good thing is that the bank will know what the starting price is and what the price has been lowered to and at what number it took to receive an offer on the house....That is generally the number the bank can expect to receive for the house. I have negotiated my fair share of short sales on the seller side. One thing I always do is start at fair market value and lower accordingly based on showings and feedback until i receive an offer. When i receive an offer I send in the complete history of the pricing strategy i used from the original price to the asking price before I received an offer on the house. In addition I include all the feedback on the house. This helps me justify my price to the bank and help with the appraisal value of the house. if that number is significantly higher I have had banks ask for a second opinion and have sent supporting documents in to help justify the price I have the house marketed at... not always but most of the time it has gotten me the price I needed for the house. Short sales can be very beneficial and a good buy for prospective buyers. just know when you go in that there may be a wait time longer than anticipated if you were negotiating a regular conventional sale with a seller....but if you can wait the price and the deal would be worthwhile to both you and the seller.... Dave diCecco Realtor/Broker www.davedicecco.com