Why a Wave of Foreclosures Is Not on the Way

Your Journey to Homeownership 

Sellers:  In the Carolina's, you are still likely to be in a bidding war this winter.

1. First - Hire a Realtor - Let them be your guide

Meet with a Realtor that is actively involved in the market. 

Things have drastically changed, and using someone that is a part-time agent will not be a good navigator in this lightening fast market.

The pandemic has changed business models and in doing so, have been offering a lot of work-from-home opportunities.

The domino effect is that our housing needs have changed and many are now using their homes to account for business, school, and family being home 24/7.

The need for home offices, quiet space for home schooling and tweaking our outdoor living spaces as well as the option to live in a new city, all circle back to the pandemic.

Charlotte is high on the list of relocation destinations - for its location, international airport, good weather, and lower taxes. 

Coupled with low interest rates, this rise in home buyers has caused our dwindling housing supply to be in a crisis mode. With lumber prices up, even new home sales have been unable to keep up with demand.

2. Understand the Market

As of May 2021, the Wall Street Journal noted that the overall U.S. listing inventory was down by 4 million homes. The current Charlotte market has been averaging a one-month supply of listings, where a 5 to 6-month supply is what a normal market would be like.

Charlotte home prices tend to run about 5.5% year over year. In the past year, prices have risen by 12.5%. It does not appear to be a bubble; it appears to be a price adjustment to the Charlotte market. 

Hesitating on a purchase, due to the competition or thinking the price will go down may end up pricing you out of a neighborhood that you can afford now. 

Case in point, neighborhoods that sold between $400,000 and $500,000 in the fall of 2020, now have starting prices of $500,000, and with competitive bidding being the new norm, any existing inventory that sells, will continue to drive those prices up.

So, the question is, can you afford to wait? 

The good side of this equation is that the lower interest rates (hovering around 3%) can be locked in for a 30 year loan - which is a win for any buyer in any market.

If you were thinking that a new home is what you want, things have also changed dramatically on that scene.  We have many home builders that are limiting each of their communities to lottery bids and then submitting just 4 new home contracts per month. This is due to quality control,  the rising costs of materials, namely lumber (up 24%), drywall (up 7%), steel (up 18%), copper (up 27%) and contractors tapped out with more than they can handle.

CNBC (5/2021) said the rise in lumber prices has added an additional $35,872 onto the price of an average single-family home.

Again, can you afford to wait?

3. The News

If you have tried to find the home of your dreams, and it sold before you could see it...that reflects what you are seeing, hearing and/or reading in the news. 

The reality is that the housing shortage is a national issue - one that has some long legs on it. We will likely be in this type of market for at least the next 2 to 3 years. For Charlotte area real estate, it has been a seller's market for about 5 years now. 

Following the law of supply and demand, the low supply of housing and the high demand from buyers will keep home prices on the rise.

Some buyers may initially think their agents just want the sale.

The more you are involved in the home buying process, the more you’ll listen to the advice of your Realtor...as aggressive and uncomfortable as that advice may be, the market and the process have both changed, yesterday's norms, no longer apply. 

4. Does the Highest Price automatically win?

Price is important, but there are other things — like a flexible closing date  — waiving contingencies, and first and foremost, being prepared from the start.

5. Cash or Carry

If you are buying your home with cash, you will need to show "proof of funds". 

If you will be carrying a loan, you will want your mortgage lender to be local. You will want your appraiser to be local - they know the local market.

As for your lender, they should be available to answer the phone and text back to you within a few hours. Written loan approvals need to be done within 14 days to compete with cash.

6. Time is of the Essence

 A year or two ago, your agent may have placed a "Time is of the Essence" clause on your offer to purchase, trying to speed the homeowner into making a quick decision.

If the home you are bidding on just came on the market, it is likely already receiving multiple bids.

Knowing it is a new listing and the market is sizzling hot, the best thing you can do is put your "highest and best" offer in from the start. 

The seller's agent can send a notice out to all agents, stating that "highest and best" bids will need to be in by a certain time and date. This is usually just 2 to 3 days from the home becoming active.

That being said, the homeowner can also just accept an offer and cancel all incoming showings. 

A call out for "Highest and Best" is a courtesy to the Buyer's Agents and their clients.

Some offers are too hard to say no to. You may not get a second chance to adjust your bid.

7. Jump!

As a home buyer, you will fast come to realize that the competition is more intense over some homes than others.

You have no time to dawdle when it comes to viewing a home.

You need a buyer's agent that is dedicated to you so they can get that appointment scheduled and/or run out and video the home if you are out of town.

The home may only be on the market for two days before the seller's agent calls for 'highest and best' bids to be given. Which means, you lost the opportunity. 

Those that have lost 5-6-7 bids, are on the hunt and they have a new objective...it's to win the bid, before they get outpriced by the market itself.

8. How to Sweeten the Offer

In this competitive market, the days of a 1 percent fee to cover the earnest money deposit and the due diligence fee are over.

In North Carolina, the Due Diligence fee is ruling the day.

In the Charlotte market, we're seeing Due Diligence fees range anywhere from $10,000 to $30,000 (on a $500,000 home) and even as much as $100,000 on higher priced homes. 

The Due Diligence fee comes back to you on the day of closing and can be applied to the home purchase. It's back to being your money. However, if you walk from the contract, the due diligence fee is then the seller's to keep. 

9. The Listing Price is the Opening Bid

My, how things have changed.

Your Realtor (buyer's agent) will have all the tools, software and stats to help you gauge where to place your bid and how to structure your offer to put you in the winner's seat. 

10. As-Is and Home Inspections

In North Carolina, the Offer to Purchase states that the seller is selling the home AS-IS.

This does not mean you should waive your right of a home inspection.

It does mean that the homeowner doesn't have to fix anything. But, as the home buyer, you can still ask that they fix (or offset the cost of repair financially) by using the Due Diligence Repair Request. 

The suggestion would be to request repairs that are a safety issue, such as structural, electrical, plumbing, radon, or mold. 

Again, they can say no... but, they can also agree to do the repairs. 

11. What's a good deal look like?

A “good deal” is getting the house.

As a home buyer, you are not in charge. You are at the mercy of the market and the mercy of your finances. Over 67% of homes are going into a bidding war.

Shopping for a lower priced home allows you to stay in your budget.

It will also afford you the ability to get in the bidding war and win the bid. 

12. Top Tips

Hire a great buyer's agent (preferably a Realtor, as they are obligated to a Code of Ethics).

Be financially prepared.

It is a very tense market for all involved.

Be quick and then be patient. 

The seller has a stacked deck - navigate the market accordingly.

Home Sales About To Surge? We May See a Winter Like Never Before.

What’s Happening with Charlotte Area Home Prices?

Charlotte’s real estate market has gone crazy with lots of buyers and no sellers!

Bidding Wars are taking place on over 65% of homes listed for sale.

If you are a seller, your fear will be that in just one day, you could feel as though you rendered yourself homeless!

Suffice it to say, you’ll likely be a buyer, too. We can help you buy first and sell later.

As for you home buyers, at first, you will go gingerly into the process of bidding at the list price. That seems more than fair. Once you lose that house, you’ll find another one that “just listed” and you’ll run over there, love the house, and this time you may go a few thousand dollars over the list price. You lose again. That seems absurd.

Unfortunately, you may do this another four, five or six times. When you finally win the home of your dreams, you’ll be emotionally exhausted, and at the same time, jumping for joy.

How did you finally win that bid? First and foremost, you got tired of losing bids, and started to take your Realtor’s advice (and this seller’s market) seriously.

Tip #1: The first of the 6 Tips to succeed in winning the bid, will be to work with a Realtor that you trust and therefore you take their advice. They should be well-versed in each of the areas mentioned below and can explain them to you in more detail.

 Tip #2.  Lending - Have a mortgage lender’s letter that says you are qualified to purchase X amount. Not a pre-qualification letter. Your competition may be showing up with a cash offer - those are tough to beat - but not impossible.

 The Loan Qualification Letter means that your lender has requested a ton of paperwork to prove your income; gathered your tax returns; dug into your debt and literally qualified you for the loan.

 The Pre-Qualification Letter is a phone call or an online application. Here, the lender has asked you for your social security number; looked at your debt-to-income ratios; and submitted your information for a credit rating.

 As a Cash Buyer, you must have a “Proof of Funds” letter in hand, so the seller and their real estate agent know you have the goods to close the deal.

Tip #3.  Increase your Due Diligence Fee - The North Carolina contract has a Due Diligence period. During the Due Diligence period, you (the home buyer) can decide to walk from the contract.

The Due Diligence Period is secured with a Due Diligence fee, which the seller will keep if you terminate your contract prior to the end of the Due Diligence Period.

Make your offer more attractive by increasing the DD fee. The expectation is that if you make your due diligence fee super high - you won’t walk from the contract. And, if you do, you will lose thousands on your exit.

Prior to the end of your due diligence period, you’ll want to get all your home inspections, appraisals, title work, and any other thing you desire, completed to your satisfaction. 

Tip #4. Timing - You’ll have to stack the Offer in favor of the home seller. This means working on a timeline that suits their needs. Timing includes tightening up the Due Diligence Period and being flexible with the closing date per the seller’s needs.

 Tip #5. Limit Contract Contingencies - Contingencies include lending; inspections; home appraisals; and requests like home warranties and home appliances.

You can still get your home inspected and appraised, just don’t expect the seller to fix anything or work with you on a low-ball appraisal. Some will, some won’t.

The due diligence clause allows you to exit the contract for any reason at all - prior to 5 PM on the agreed upon date. When you tour the home, take a close look inside and out, and read the Residential Disclosures. Ask Questions.

 Tip #6: No Dawdling- Using today’s technology, your Realtor can work quickly, providing you with a comparative market analysis, putting the offer together and using electronic signatures so you can get your bid in quickly.

 The Charlotte area market has been steadily moving forward with less than two months of inventory, indicating that the seller’s market should be here for a good while longer so there’s no use in putting this off.

 Take advantage of today’s all-time low interest rates, have fun competing and when you win the bid, jump for joy.

 It’s a big deal!

Millennials are still struggling to become homeowners, and one of the biggest reasons is their student loan debt. According to the National Association of REALTORS, a whopping 80 percent of millennials don’t own a home! Millennials are expected to delay home buying for an average of 7 years due to their staggering student debt. Read this article to learn about down payment programs for millennial home buyers with student debt! You may be able to get your dream home sooner than you think!

National Homebuyers Fund

For potential buyers having trouble saving up for a large enough down payment there are assistance programs and grants available to help. The National Homebuyers Fund (NHF) has down payment assistance programs in many states. They offer down payment grants or closing assistance for up to 5 percent of the loan amount on a home for sale in Providence.

Companies Offering Home Buyer Assistance Programs

More companies are now offering homebuyer assistance programs as well. They recognize the student loan debt challenge with millennial buyers and seek to help these buyers overcome this hurdle. However, it is recommended that buyers seek the advice of a financial expert before participating in one of these programs to purchase a house for sale in Concord.

Home Builders

Are you thinking about a new house for sale in Charlotte? There are builders out there who have programs available to help with the reduction of student loan debt. For instance, through these programs, you are allowed to redirect a specific percentage of the purchase price of a Waxhaw home for sale to student loan payoff.


Again, make sure to consult a financial professional before choosing any of these programs. It’s important to make sure that it works for your specific situation. Have you used down payment programs when purchasing your Charlotte home? Please share your experience!

You’re getting ready to sell your house for sale in Matthews and staging is the next big step. There are so many choices and you wonder who you should appeal to the most. Read this article to learn how to pick the target buyer for your home staging project so that the money you put into staging results in the fastest and highest bid!

Why You Should Have a Target Buyer in Mind

A home stager must have a target buyer in the forefront of their mind so that their work is effective. Without a particular buyer in mind, you end up trying to appeal to “everyone,” which can result in a bland and boring property. Home staging is all about getting potential buyers excited about your Waxhaw home for sale!

Consider the Neighborhood and Property Traits

One of the basic exercises you can do to determine your target buyer is to consider your neighborhood and particular property traits. For instance, ask questions such as: Who lives in my neighborhood? Young couples? Young singles? Retired couples?

Additionally, you should consider whether your NoDa house for sale is near conveniences such  as public transit, parks and bike paths. Is your house more of an adult home with modern open staircases or is it family-friendly with amenities such as a possible playroom? Is your street busy or is it on a quiet cul-de-sac?

All of these considerations will help you find your target buyer, their stage of life and demographics. Then, you stage toward these details.

Make an Emotional Connection

Finally, make sure to make an emotional connection through your staging of a home for sale in Southpark. House hunting is heavily influenced by emotions so think about special touches you can incorporate into your staging to make your house super cozy and appealing to your target buyer.

Do you have more tips on how to pick the target buyer for a home staging project? We would love to hear your thoughts!

Many buyers wonder if they should include their kids in the house hunting adventure. After all, they will be living there too and why not have everyone’s opinion? There are pros and some fairly hefty cons to bringing your kids along. In the end, you know your family best, but consider these tips before making your final decision. Read this article to decide if you should bring your kids to an open house for a Providence home for sale.

Kids May Mean Too Much Distraction

Unless you have perfect angels as kids, you can bet that there will be some distraction if you bring your little ones to an open house. In general, one parent is in charge of keeping the kids in line, which means they don’t get the chance to fully view a house for sale in Ballantyne.

If you are a couple, you want to make certain that both people are fully involved to make the best decision possible about a specific property. The general rule is, bringing kids to the first showing may be too distracting. If you absolutely have to, consider asking your agent to view the property alone afterward.

You Get the Final Say

It’s very gracious to allow your children to voice their opinion when it comes to where they live. However, ultimately, you get the final say! You will be the one paying the mortgage and maintaining the property as a responsible homeowner.

If possible, you may want to wait until the home inspection to let your kids view the property. Sometimes more opinions early on can make the decision-making process more complicated.

For the Exceptionally Well-Behaved

Sometimes there are buyers with exceptionally well-behaved children. In these cases, your children may even help you make the decision and perhaps even facilitate a sale. Some kids are polite and social and this can go a long way when trying to win a bid on a Lake Norman home for sale.

What do you think about bringing your kids to an open house? Would you do it? Why or why not?