5 Things To Consider If Buying A Home In Charflotte, NC. In 2013

Last week I wrote about the five things sellers should be doing to help sell their homes in this market today. Today I am addressing the things buyers should be doing or questions they should be asking their agents when buying a home in today's market. The paradigm has shifted away from the buyers and towards the sellers. In some pockets of Charlotte you are seeing multiple offer situations as well. But do not over pay just to own a home. That is financially no smart. A home is the largest purchase you will make in your lifetime; ensure it is the right one. So, if you are looking to buy a home today in the Charlotte, NC. area here are things to consider when looking at homes: First, be realistic on your offer on a house. The market is tighter and sellers are more apt to turn away a low price offer rather than counter it. Last year I would have recommended going in really low just to see what the seller is willing to come down on the price. Because I believe that you can go up but cannot go back down. However; the market has shifted and if you are offering a low price on a house some sellers are not even offering a counter offer. I have had a few sellers tell me that it is not even worth their time to entertain the offer because we were so far apart and the traffic was great. That also leads you to the issue that if you come back with a higher price you have just passed the leverage to the seller mentally. They now think that you really want this house and are willing to step up the price and may try to hold out for more money from you. (I had two sellers do that recently and both got the price). The sellers know inventory is limited but they also are looking to be fair with the price. Second, look at the comparable in the neighborhood for the past three months, six months and year. I know that going back a year is not going to help in this market. But it does help give you an idea of how the neighborhood is trending. I like to run the numbers from one year ago, then six months and then three months. With this information I can see fi home prices are increasing and by how much. But more importantly I can see how close to asking price they are getting for their house as well.... This helps me in pricing an offer on a house. If the trend over the past few months is the homes in a particular neighborhood are selling for 97% of asking price and the house you are looking at is in line with the average asking price over that time; then it holds true that a fair final price is going to be somewhere around 97% of the asking price. But also this will give you an idea if a Realtor put a house on the market and overpriced it as well. Unfortunately I am running into more and more homes that when a buyer says I like this one run the comparable numbers we are substantially apart from what the house should sell for. Approaching the listing agent with this question; I generally get well the market is improving and that is what they want for the house. Reality is the house will not appraise and then you have an upset seller and buyer because the agent did not do their due diligence upfront. Third, check the type of sales in a particular neighborhood. If the last few sales have all been foreclosed homes and you are looking at a resale form a home owner then the pricing is going to be different. But also, you want to be weary that you are not over paying for the neighborhood either. I have talked to a couple of appraisers who have said a good rule of thumb is to factor 10% to 15% more for non-foreclosures to the price. You also want to know if the neighborhood is getting bought up by investors or home owners. A neighborhood that is rental driven tends to lose value over time because of the lack of pride of home ownership. Fourth, be flexible on your closing date or give enough notice. Chances are if you are buying a home that is owner occupied that family is going to be looking for a house as well. If the process took you a couple of months it probably is going to take them a little time to find a home as well. A flexible close date or one that allows for at least 60 days in this market has gained strength with sellers looking to sell. A short non-negotiable time frame for closing with the seller not knowing where they are going could lead the seller to ask for more money or cost a deal. A couple of week’s flexibility should not cost you a home sale. Start early and leave enough time for the seller to find a place....it will help with the negotiations. Fifth, shop your mortgage rate and fees around. Playing one against another for your business is just good business practice. I helped one single mother save over $24,000 by having her shop one against the other and then comparing the two and negotiating for her with each one until they both said they were at their best. From the initial offer she got form the bank to the final numbers we received she saved $4000.00 up front and if she stays there for 30 years she will save over $20,000 in interest over that time as well.. Yes banks are getting tighter; but buyers still have some leverage. These five things should help you in your pursuit of home ownership in this ever changing housing market.... Dave diCecco Realtor/Broker Coldwell Banker United Cell: 704-519-7895 ddicecco@cbunited.com www.davedicecco.com