Should I Overpay For A Charlotte, NC. Home Becuase Of Home Shortage?

The question has become more predominant this spring than ever before. Should I overpay for a house because of the shortage of homes on the market to choose from right now. My answer has been and will always be NO. I cannot justify anytime where overpaying for a house is a viable option. Currently we are seeing a sellers’ market and inventory levels are at substantially low levels. Buyers are panicking because they are not use to not having the multiple choices of houses to choose from and sellers are trying to take advantage of it by pricing their homes higher than market value. Now, those homes are going under contract. But the biggest dilemma I am witnessing right now is not that home buyers are willing to over pay for a house; but that they are not appraising. Case in point is i put a home on the market at a fair market value with a slight inflation (3%) to cover the negotiation I expected to have on the house based on recent comparable over the past three months. Within ten days of being on the market I received multiple offers on the house. We asked for Highest and best offers from all interested parties. Every one of the offers was over the list price of the house. Needless to say my seller accepted the one that was the highest (over 10% higher than my asking price) despite my fears of not appraising. Well the buyers lender had the home appraised and it came in under the asking price of the house. My seller did not want to move on the price and the buyer obviously did not want to pay over the appraised value for the house. Despite negotiations at trying to reach a compromise we terminated the contract. There are becoming a lot of homes out there that have buyer financing fell through...which is the home did not appraise. As a realtor representing the buyer; you are playing with their money. They are now out the cost of the appraisal, the home inspection and any other fees and services they had done before finding out the outcome of the appraisal. I picked up a buyer who had been with an agent who had helped him put offers in on three homes. He won all three homes and then terminated all three contracts because the homes did not appraise. He fired his Realtor after losing over $5000 in appraisals, due diligence fees and inspections... between those two examples are just ones of many that I hear of everyday. Realtors fear is that house will not appraise. but on the other hand they are playing with fire in hoping that the seller will lower the price down to the appraised value and the seller has higher expectations on what they expect to get out of the house and usually are not as flexible.... But I am seeing a trend where home prices are starting to come down as sellers are reducing the prices on homes faster and quicker to ensure they do not lose on the spring housing market. but, when you are putting more than 3.5% and not doing a FHA loan; if the appraisal is low the seller may not be as willing to negotiate either and it can and does more often than not back fire on the buyer and they are out the due diligence fee and the appraisal..... So, no you should not be overpaying for a house in this market and if your Realtor is recommending it because of the limited inventory find another Realtor. I have one client that we have looked at numerous homes and decided on five homes we wanted to buy. Each time we could not get the price to a point where I thought the house would appraise ad we walked away...last night one of these sellers’ agents called me and asked if I was still interested and they were willing to accept our last offer. When i went back and looked the house up I noticed it went under contract and then the deal fell through. Found out it was due to the appraisal and our price was just under the appraised value so the seller would accept it; if we were still interested..... So, you can still get the house you want at a fair price. You are not going to be able to steal a house in this market but you also should not be over paying...just give yourself a little more time to look and be patient. A home purchase is the largest single purchase you will make. Dave diCecco Realtor/Broker Coldwell Banker United Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com

Home Prices Continue To Rise In Charlotte, NC. In 2013

A fact everyone has been hearing about Charlotte NC. home prices increasing was substantiated by Standards and Poor Case Schiller Home price index. For those unfamiliar with Case Schiller it is considered the leading measure of home prices and values and tracks the major 20 metro markets in the country to decipher how the housing market is doing. It may be the only independent research on home values that most economists and home market experts agree to be unbiased. The data they collect is a couple of months behind. But the latest numbers for them for the month of February showed a consistent trend in Charlotte versus the same period as last year. In Charlotte, NC. home prices on average increased 6.2% from last year the same time. That is a huge increase in year over ear prices and is most reflective on the limited inventory that is available right now. In fact, I went back and started looking at the numbers going back into 2012 to see when we began seeing a year over year gain in prices. I admit I was a little shocked to notice that in the Charlotte, NC. market the prices have consistently gained from the same month the year before to this year on every month since August 2012. That is over seven consistent months of price increases year over year. Now, that does not mean that the prices have risen every month on average. All it is saying is that for the same time period the previous year the prices adjusted upwards. because from January to February of this year the prices overall actually fell .2%. But, since this time last year prices have increased on average over 12% from February of 2012. For the most part they have gone up or stayed the same with minimal decreases if any month to month. Dave diCecco Realtor/Broker Coldwell Banker United- Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com

Marketing Your Charlotte NC. Home To Sell In 2013

As the pendulum has started it' shift toward the sellers; home owners in Charlotte, NC area are deciding on whether to put their homes on the market or to wait it out. Some home owners have been waiting it out on the hopes of the market improving and feel the time is right with inventory levels down to levels not seen since 2007 during the peak of the housing boom. But finding a Realtor to list your home and put it on the market with a sign in the yard and in the Multiple Listing Service may not be enough to sell your home today. Home buyers are more conscious than ever of the way the market was and are more prone to be a little more hesitant and sure about their move first. One trend that is becoming a popular search among home buyers is the lifestyle. What does the neighborhood or area have to offer for them? Is there a greenway locally? A Park? Can they bike to work or school? How far are stores or highways? Is the neighborhood child friendly? Does it have sidewalks? The list goes on..... Home buyers today are looking for more than a house; they are looking for a home with a lifestyle in an area that fits their lifestyle. Marketing a home to the benefits of the area can be a plus that attracts a buyer to your house over another one and may lead to a sale... For example, a home that backs up to a town park and is wooded in the rear with walking trails and playgrounds and tennis courts, baseball fields and a track might be appealing to the outdoors family that likes to do things like that. But if you do not mention that your home backs up to it when they are searching for a house you are just another 4 bedroom two and half bath home. or one that has access to a greenway have become popular among home buyers in the mallard creek section of charlotte because of the possibilities the greenway offers to get to work and school today... Inventory is down but home buyers are not just buying. They are looking for the right house at the right price in the right area with lifestyle they want....Marketing your home to the amenities that the area offers will only enhance your chances of a sale of the house. he two examples are of homes I showed this past weekend where neither of those things were mentioned and only based on my knowledge of the area and knowing what they are looking for did we view them....but what if I was not that astute to the specific neighborhoods? Would another agent have shown them those homes? Maybe or maybe not.....But why take that chance? Buyers are not buying homes just because they are on the market anymore. They are buying homes that fit their lifestyle and wants and needs. By marketing to the strengths of a house you increase the chances that the house will sell faster and for more money. Because we all know the longer a house sits on the market the harder it is to sell because of the perception of something wrong and you tend to get less money. Dave diCecco Realtor/Broker Coldwell Banker United Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com