Every home buyer today is looking for a great deal and that has led them to consider foreclosed properties. However, most are unaware of the life cycle of such properties and the opportunities that exist at each stage. So here's a breakdown of the life of a foreclosed property and the benefits at each stage.
Pre-foreclosure
A pre-foreclosure is a property that is in distress and the owner is facing foreclosure. Often times, the owner is being foreclosed upon a mortgage but homeowners associations and bankruptcies can also force foreclosure proceedings. A pre-foreclosure (also known as a short sale) usually results in a seller selling the property for less than what's owed. The listed price of the property is set by the owner and their agent (if listed) and then later approved by the bank. Ultimately, the selling price is determined by either an appraisal of the property or an opinion of a local real estate broker (not the buyer's agent or listing agent). These properties are also sold As-Is, regardless of condition or age.
The approval process by the bank can take anywhere from 2 weeks to 2 months depending on the workload of the bank's loss mitigation staff. Also, the paperwork can be cumbersome and you'll need to have a participatory seller. The bank may require them to hold a promissory note or they may face tax penalties if they agree to the terms of their pre-foreclosure sale. Ultimately, for the buyer, pre-foreclosure properties are best in markets that have faced a substantial price decrease in a relatively short period of time.
Foreclosure Sale
In North Carolina, a foreclosure sale occurs at the local court house of the property being sold. At this point, the bank has hired a trustee (an attorney) to sell the property and a judge has held a hearing and found in favor of the bank to sell the property. The sales are a matter of public notice and anyone may bid on the foreclosing property. However, before you do so, you need to do your homework. These are auction style sales officiated by the court. They aren't true absolute sales as the foreclosing bank or party will secure their interest by bidding the amount owed to them.
First, understand that you are buying this property sight unseen most often and cannot have an appraisal or inspection. If the home is listed prior to the sale, feel free to have your agent take you through. It is a HUGE risk to purchase a home without seeing the inside.
Second, you'll either need a hard money loan, an equity line on a current property, or cash to make the purchase. Because you don't have a right to access the property, you cannot have an appraisal done. Therefore, this is inappropriate for 99% of home buyers.
Third, you need to know what is foreclosing on the property. All too often, a novice investor will bid on a $400,000 home for the balance of the HOA dues and think they've purchased the deal of a lifetime. What they're purchased is a world of trouble as they purchased a junior lien. That buyer would need to satisfy the primary lien or risk being foreclosed upon. Anyone interested in pursuing these types of sales should hire someone to do a title search to find out what they're bidding on and what else is hanging over the property (IRS tax liens, etc).
Finally is the price. If you're bidding on a first mortgage foreclosure, the foreclosing bank will bid the balance of the mortgage to secure their interest. If no one outbids the bank, the bank buys the house back and it becomes a bank-owned property.
These homes are generally still occupied and it's up to you to evict the tenants or former owners. Again, this can be very sticky so hire a good attorney to guide you through the process.
The Foreclosure Upset Period
After the high bid has been reached in a foreclosure sale, there's a 10 day bid upset period. Rarely, on a home with two mortgages, the second mortgage can come in an upset the bid to secure their interest in the foreclosing property. Anyone can upset a bid and some investors do nothing but upset high bidders.
The Bank Owned Sale
If a bank has foreclosed on a property and they are the high bidder, the property is listed for sale with a real estate agent. That agent lists the home through the MLS and anyone may make an offer. At this point, the home is vacant and clear of any liens. For most buyers, this is a great opportunity to buy a distressed home however there are a few areas where many run into trouble.
First, you need appropriate financing for the condition of the home. Many of the properties are not move-in ready and may require repairs. DO NOT EVER UNDER ANY CIRCUMSTANCES REPAIR A PROPERTY THAT IS NOT YOURS!!!!! I have been in properties where the only visible damage was that someone removed the kitchen cabinets. Other times, an A/C unit is missing. It is imperative that you obtain financing appropriate for the home you're purchasing, which usually means Cash or Conventional. FHA and VA are inappropriate for most bank properties with the exception being HUD and VA owned properties.
Second, you will need to do inspections. The properties are sold As-Is, where-is, no conditions, no contingencies, no repairs. Some feel that since that's the case, you wouldn't want to waste the money on an inspection. However, you may uncover a serious issue that may result in the home a bad deal. Hire a good inspector to know what you're getting yourself into.
The Bank-Owned Auction
Often times, a bank will have a number of properties listed on the market without a suitable buyer. Because they're not in the business of owning a bunch of real estate, they will often sell their currently listed homes at auction. These aren't new properties but ones that have failed to sell. Here in Charlotte, there's an auction like this once a month or so.
Buyers can utilize financing and can do inspections BEFORE the auction sale. Also, as with any real estate auction, there's a buyer's premium that the buyer pays (the auctioneers commission) that is tacked on to the highest bid. Therefore, you will need to be aware that you may have the high bid of $400,000 but after the premium, the sales price may be $450,000.
As my advice before, utilize your agent for this type of sale. Investigate the properties, know you're bidding on the right home, inspect the homes you're interested in, and get approved for any mortgage ahead of time.
What I haven’t heard discussed anywhere regarding the American Clean Energy and Security Act (otherwise known as Cap & Trade) is the profound effects it will have on residential real estate. http://www.opencongress.org/bill/111-h2454/text?version=rh&nid=t0:rh:2259 As I read this bill, I discovered that the federal government will create a labeling and energy audit program to improve the efficiency of residential real estate. While that may sound great, the standards for the bill were not included in this act. However, once a standard is set, all residential real estate will undergo an energy audit to discover if that home meets the minimum standards set by the federal government. What the act does do is to say that they will force compliance through the transfer of ownership (i.e. sale). Therefore, home sellers may face having to replace windows, doors, appliances, add insulation, replace a/c units, etc just to convey the property to another buyer or face penalties.
In addition, with the popularity of FHA and VA loans, I can forsee a lender requiring an energy audit and making a satisfactory audit apart of the loan approval.
Single Family Homes in Mecklenburg County North CarolinaArea 1 including:
Charlotte, Cornelius, Davidson, and Huntersville Neighborhoods East of I-77, North of N. Tryon Street, West of Cabarrus County, and South of Iredell County including the neighborhoods of Highland Creek, Vermillion, Heritage Green, River Run, Skybrook, Northstone, Cambridge Grove, and others.
Data gathered for May 1, 2009 - May 31, 2009
Active Listings
In 344 single family detached homes were listed for sale in Area 1 North Carolina. May's new listings were 15.05% more than in April and 18.29% fewer than were listed in May 2008.
Pending Units
209 Single Family homes received a contract. This was 11.76% greater than received a contract in April and 6.28% fewer contracts than in May 2008. When compared to May 2007 and 2006, 34.48% and 47.49% fewer contracts were written and accepted this past May.
Sold Units
139 Single Family Detached Homes were sold in May 2009. This was a increase of 3.73% from April and 26.46% decrease from May 2008. When compared to May's from 2007 and 2006 it is a staggering decrease of 50% and 58.88%.
Average Sold Price
In May, single family detached homes that sold in Area 1 sold at an average of $210,703 which was 16.73% more than in April and 4.49% decrease when compared to May 2008.
Average Days on Market
Of the homes that closed in May, they were on the market for an average of 103 days before receiving an offer. That was 4.63% less than the month earlier 24.10% greater than a year earlier, and 68.85% greater than in 2007. 89 Single Family homes sold in less than 100 days while 50 homes in 100 days or greater. 2 homes were listed for over a year before receiving an offer.
Seller Concession
67 out of the 139 homes (or 48%) that sold in May offered the buyer a concession, usually closing costs. The average seller concession was $4,456.
Buyer’s Agent Bonus
Offering a bonus to a Buyer’s Real Estate agent is widely thought to produce a quicker sale and net the seller a higher return. Only 4 closed listing offered such a concession, with the seller receiving 82.91% of their original asking price and a average days on market of 151.
Sold Price as a Percentage of Tax Value
131 of homes that sold in May in Area 1 had a tax value assigned to the listing. The homes that sold in May sold at an average of 95.72% of their listed tax values. 69 homes sold below tax value, the lowest of which was an REO which sold at 141.14% of its tax value. There were also 3 properties selling well over tax value (normally new construction or extreme renovations). With these unusual factors removed the average drops to 80.09% as a percentage of tax value.
Sales Price as a Percentage of Original List Price
Of the homes that sold in May in Area 1, sellers received 91.03% of their original asking price. With seller concessions included, sellers received on average 89.73% of their original asking price.
For homes listed for sale for less than 100 days, those sellers received 92.42% of their original asking price including concessions while homes listed for greater than 100 days received only 84.95%.
Buyer Financing
Of the homes that sold in May, 4 buyers used VA financing, 51 used FHA, 60 used Conventional Financing, 22 cash and 1 other.
Single Family Homes in Mecklenburg County North CarolinaArea 2 including:
Charlotte Neighborhoods East of N. Tryon Street and North of Albermarle Road (24/27) including the neighborhoods of Plaza Midwood, NoDa (The Arts District), Belmont, McCarron, Old Stone Crossing, Buckleigh.
Data gathered for May 1, 2009 - May 31, 2009
New Active Listings
In May, 254 homes were listed for sale in Charlotte’s Area 2. This was a increase of 2.83% over April but a 27.64% decrease when compared with May 2008, 38.65% decrease compared with 2007, and 35.86% decrease compared with 2006.
Pending Homes
112 single family homes were placed under contract for Area 2 in May 2009. This the same from the month prior. Compared to May 2008, there were 35.63% fewer homes receiving contract than the year prior and 57.74% fewer than during the same period in 2006.
Sold Units
In May, 87 single family detached homes were sold in Area 2 through the MLS. This was a decrease of 3.33% when compared to the month prior but 38.30% fewer than in May 2008. The numbers begin to get staggering when you look back to 2007 and 2006 when the decrease in the sales for this year were 62.34% and 65.20% respectively.
Percentage of the Listing Price Received
Sellers received on average 89.16% of their asking price before concessions in May. Compared to April that is a decrease of .54%. Looking further in the past in past May's there is also a decline in 2007 and 2006 of 7.84% and 9.03%.
Average Days on Market
Of the homes that closed in May, they were on the market for an average of 93 days before receiving an offer. That was 7.92% less than the month earlier 12.05% more than a year earlier, and 40.01% greater than in 2007 and greater than 2006 with 24%.
55 Single Family homes sold in less than 100 days while 32 homes in 100 days or greater. Only one home sold after 1 year of being on the market.
Seller Concession
47 out of the 87 homes (or 54%) that sold in May offered the buyer a concession, usually closing costs. The average seller concession was $3,591.
Sold Price as a Percentage of Tax Value
83 of the homes that sold in May in Area 2 had a tax value assigned to the listing. The homes that sold in May sold at an average of 194.80% of their listed tax values. 53 homes sold below tax value, the lowest of which was an REO which sold at 42.55% of its tax value. There were also 4 properties selling well over tax value (normally new construction or extreme renovations). With this unusual factor removed the average drops to 93.13% as a percentage of tax value.
Sales Price as a Percentage of Original List Price
Of the homes that sold in May in Area 2, sellers received 89.16% of their original asking price. With seller concessions included, sellers received on average 87.84% of their original asking price.
For homes listed for sale for less than 100 days, those sellers received 92.33% of their original asking price including concessions while homes listed for greater than 100 days received only 80.12%.
Buyer Financing
Of the homes that sold in May, 2 buyer used VA financing, 37 used FHA, 25 used Conventional Financing, 22 cash, and 1 other.
Market Update for Matthews, Mint Hill, and Charlotte NC (MLS Area 3).
For all neighborhoods west of Independence Blvd and South of 24/27 in Mecklenburg County, including the towns of Mint Hill, Matthews, and Charlotte.
Data gathered for May 1 2009 - May 31 2009 from the CMLS
Active Listings
In May, 157 single family detached homes were listed for sale in Area 3 North Carolina. May's new listings were 3.09% less than in April and 13.26% fewer than were listed in May 2008.
Pending Units
76 Single Family homes received a contract. This was 2.70% more than received a contract in April and 28.97% fewer contracts than in May 2008. When compared to May 2007 and 2006, 51.28% and 53.37% fewer contracts were written and accepted this past May.
Sold Units
49 Single Family Detached Homes were sold in May 2009. This was a decrease of 16.67% from April and a decrease of 47.31% from May 2008. When looking in 2007 and 2006 the decrease is even more apparent, 63.43% and 63.70% respectively.
Average Sold Price
In May, single family detached homes that sold in area 3 sold at an average of $196,061, which was a 34.19% increase than in April and a decrease of 6.67% when compared to May 2008. Taking seller concessions into account the average sales price dropped to $194,014 in May.
Average Days on Market
Of the homes that closed in May, they were on the market for an average of 102 days before receiving an offer. That was 21.54% less than the month earlier 18.60% less than a year earlier, and 92.45% greater than in 2007. 30 Single Family homes sold in less than 100 days while 19 homes in 100 days or greater. 1 homes took a year or more to close.
Seller Concession
28 out of the 49 homes (or 57%) that sold in May offered the buyer a concession, usually closing costs. The average seller concession was $3,583.
Buyer’s Agent Bonus
Offering a bonus to a Buyer’s Real Estate agent is widely thought to produce a quicker sale and net the seller a higher return. This month there were no properties that sold offering such a bonus.
Sold Price as a Percentage of Tax Value
44 of the homes that sold in May in Area 3 had a tax value assigned to the listing. The homes that sold in May sold at an average of 135% of their listed tax values. 15 homes sold below tax value and 29 sold over tax value. The lowest sold as a percentage of tax value was sold for 57.15% below tax value. There were also 2 property selling well over tax value (normally new construction, land or extreme renovations). With this unusual factor removed the average drops to 111.67% as a percentage of tax value.
Sales Price as a Percentage of Original List Price
Of the homes that sold in May in Area 3, sellers received 92.41% of their original asking price. With seller concessions included, sellers received on average 91.25% of their original asking price.
For homes listed for sale for less than 100 days, those sellers received 94.21% of their original asking price including concessions while homes listed for greater than 100 days received only 89.58%.
Buyer Financing
Of the homes that sold in May, 16 used FHA, 17 used Conventional Financing, 2 Other, 4 VA, 1 Owner Financed and 9 cash.
Real Estate Market Update forSingle Family Homes in
Mecklenburg County North CarolinaArea 4 including: Charlotte, Matthews. Neighborhoods West of Hwy 74, Independence Blvd. and East of Providence Road including, Grier Heights, Chantilly, Cotswold, Elizabeth, Eastover, Beverly Crest, Sardis Woods, High Timbers, Downtown Matthews, Lansdowne, Providence Plantation, and others.
Data gathered for May 1 2009 - May 31, 2009 from the CMLS
Active Listings
In May, 209 single family detached homes were listed for sale in Area 4, North Carolina. May's new listings were 13.99% less than in April and 17,72% fewer than were listed in May 2008.
Pending Units
86 Single Family homes received a contract. This was 7.50% higher than received a contract in April but 14.85% fewer contracts than in May 2008. When compared to May 2007 and 2006, 54.50% and 54.01% fewer contracts were written and accepted this past May. Sold Units
50 Single Family Detached Homes were sold in May 2009. This was 14.79% less then April and 48.98% less then May 2008. When compared to May 2007 and 2006, 69.88% and 67.95% fewer home sold then this past May.
Average Sold Price
In May, the single family detached homes that sold in Area 4 sold at an average of $282,518, which was 4.37% lower than in April and a 16.46% decrease when compared to May 2008. When taking seller concessions into account the average sales price for May 2009 is $273,940.
Average Days on Market
Of the homes that closed in May, they were on the market for an average of 119 days before receiving an offer. That was a 4.80% less than the month earlier 54.55% greater than a year earlier, and 176.74% greater than in 2007. 28 Single Family homes sold in less than 100 days while 22 homes in 100 days or greater.
Seller Concession
24 out of the 50 homes (or 48%) that sold in May offered the buyer a concession, usually closing costs. The average seller concession was $3,783.
Buyer’s Agent Bonus
Offering a bonus to a Buyer’s Real Estate agent is widely thought to produce a quicker sale and net the seller a higher return. This month there were no properties offering such a bonus.
Sold Price as a Percentage of Tax Value
All of the homes that sold in May in Area 4 had a tax value assigned to the listing. The homes that sold in May sold at an average of 122.84% of their listed tax values. 4 homes that sold were under 100% and 44 were over 100%of the tax value. The lowest property sold as a percentage of tax value sold for 44.30%. This month there were no properties selling for well over tax value (normally new construction, land or extreme renovations).
Sales Price as a Percentage of Original List Price
Of the homes that sold in May in Area 4, sellers received 91.31% of their original asking price. With seller concessions included, sellers received on average 90.53% of their original asking price. For homes listed for sale for less than 100 days, those sellers received 92.23% of their original asking price including concessions while homes listed for greater than 100 days received only 88.58%.
Buyer Financing
Of the homes that sold in April, 13 used FHA, 32 used Conventional Financing, 4 cash and 1 VA.
Single Family Homes in Mecklenburg County North CarolinaArea 5 including:
Charlotte Neighborhoods West of Providence Road and East of Park Road including, Cherry, Dilworth, Myers Park, Barclay Downs, Foxcroft, Beverly Woods, Cameron Wood, South Park, Quail Hollow, Olde Providence, Shadow Lake, Stone Creek Ranch, and Ballantyne.
Data gathered for May 1, 2009 - May 31, 2009
New Listings
In May, 322 single family listings were added to the inventory of homes for sale in area 5. This was a 13.21% decrease from April and a 17.22% decrease when compared to May 2008.
Pending Sales
115 single family detached homes received a contract in northeast Charlotte in May. This was 9.52% more than April. Additionally for May 2008 and 2007 there were 38.17% and 59.07% fewer than were written in May.
Sold Listings
Only 89 homes closed in Area 5 of Charlotte in May. Closings for May were down 42.21% compared to 2008 and 68.66% compared with 2007.
Days on Market
Of the homes which closed in May in northeast Charlotte, the average days on market was 116, a 68.12% increase from a year prior. 49 listings sold in less than 100 days while 40 sold in 100 days or greater.
Seller Concessions
33 of the 89 (37%) homes which sold in in May offered the buyer a seller concession. Of those properties, the concessions averaged $4,284.
Tax Value as compared to Sold Price
83 of the homes that closed in Area 5 of Charlotte in May had a tax value assigned. Those listings sold at 126.16% of their listed tax values. 12 of the properties sold below tax value, with the lowest being a property which sold at 72.30% of tax value. There was 1 property selling well over tax value (normally new construction or extreme renovations). With this unusual factor removed the average decreases to 123.22% as a percentage of tax value.
Original Listing Price to Sold Price
When adjusted for seller concessions, the average sales price in Area 5 of Charlotte was $391,915. This averages to 89.98% of the original listing price with concessions and 90.57% without concessions. Sellers whose property sold in less than 100 days received 93.73% of their original asking price with concessions, while sellers needing more than 100 days received only 85.39%.
Buyer Financing
Of the closings in northeast Charlotte in May, 63 used conventional financing, 14 FHA, 2 VA and 10 paid cash.
Single Family Homes in Mecklenburg County North CarolinaArea 6 including:Charlotte Neighborhoods including Dilworth, Wilmore, Selwyn Farms, Sedgefield, Broadmoor, Madison Park, Ashbrook, Colonial Village, Collins Park, Stone Orchard, Montclaire, Freeland Park.
Data gathered for May 1, 2009 - May 31, 2009
Active Listings
In May, 127 single family detached homes were listed for sale in Area 6 North Carolina. May's new listings were the same in April and 12.41% fewer than were listed in May 2008.
Pending Units
54 Single Family homes received a contract. This was the same that received a contract in April and 20.59% fewer contracts than in May 2008. When compared to May 2007 and 2006, 38.64% and 54.62% fewer contracts were written and accepted this past May.
Sold Units
30 Single Family Detached Homes were sold in May 2009. This was an decrease of 14.29% from April and a decrease of 53.85% from May 2008.
Average Sold Price
In May, single family detached homes that sold in area 3 sold at an average of $239,110 which was 12.32% higher than in April and a decrease of 9.78% when compared to May 2008. Taking seller concessions into account the average sales price dropped to $236,460 in May.
Average Days on Market
Of the homes that closed in May, they were on the market for an average of 80 days before receiving an offer. That was a 8.05% decrease than the month earlier 35.59% more than a year earlier, and 77.78% greater than in 2007. 22 Single Family homes sold in less than 100 days while 8 homes in 100 days or greater.
Seller Concession
18 out of the 30 homes (or 60%) that sold in May offered the buyer a concession, usually closing costs. The average seller concession was $4,416.
Buyer’s Agent Bonus
Offering a bonus to a Buyer’s Real Estate agent is widely thought to produce a quicker sale and net the seller a higher return. Only one such property offered such a bonus netting the seller 97.17% of list price selling in 13 days.
Sold Price as a Percentage of Tax Value
29 of the homes that sold in May in Area 6 had a tax value assigned to the listing. The homes that sold in May sold at an average of 139.28% of their listed tax values. 3 homes sold below tax value, the lowest of which was sold at 44.15% of its tax value. There were 3 properties selling well over tax value (normally new construction or extreme renovations). With those properties removed the average droped to 128.84
Sales Price as a Percentage of Original List Price
Of the homes that sold in May in Area 6, sellers received 94.72% of their original asking price. With seller concessions included, sellers received on average 93.46% of their original asking price.
For homes listed for sale for less than 100 days, those sellers received 95.25% of their original asking price including concessions while homes listed for greater than 100 days received only 88.54%.
Buyer Financing
Of the homes that sold in May, 12 used FHA, 17 used Conventional Financing and 4 cash.
Single Family Homes in Mecklenburg County North CarolinaArea 7 including:
Charlotte Neighborhoods including: Arbor Glen, Ayrsley, Berewick, Braddock Green, Brianna Terrace, Brighton, Cedar Run, Cedarbrook, Chapel Cove, Clanton Park, Coventry, Deer Creek, Falcon Ridge, Feather Trace, Fircrest, Greycrest, Griers Fork, Hamilton Green, Hamilton Lakes, Hartwell, Hathaway Hills, Huntington Forest, Kingsbridge, Laurel Valley, Markswood, McDowell (Farms, Meadows and Place), Morris Field, Nations Ford Homes, Neely Glen, Olde Whitehall, Pine knol, Pinecrest, Planters Walk, Reid Park, Reunion, Revolution Park, Reynolds Walk, Rollingwood, Royal Oaks, Southbridge, Spencer Park, Springfield, Steel Oaks, Steele Creek, Steeleberry Acres, Stellechase, Steelecroft Place, Stowe Creek, Sullivans Trace, Taragate Farms, Tealbriar, The Crossing, Twelve Oaks, Walkers Creek, Waterlyn, Waters of Steele Creek, Westover Hills, Westwood Park, Wildwood Meadows, Williams Glenn, Wiltshire Manor, Windward Cove, Wing Pointe, Wingate, Withers Grove, Woodridge, Yorkmont Park, Yorkshire & Yorkwood
Data gathered for May 1, 2009 - May 31, 2009
Active Listings
In May, 100 single family detached homes were listed for sale in Area 7 North Carolina. May's new listings were 18.70% less than in April and 41.86% lower than were listed in May 2008.
Pending Units
50 Single Family homes received a contract. This was 29.58% less than received a contract in April and 52.83% fewer contracts than in May 2008. When compared to April 2007 and 2006, 66.22% and 57.63% fewer contracts were written and accepted this past May.
Sold Units
48 Single Family Detached Homes were sold in April 2009. This was an increase of 4.35% from April and a decrease of 40% from May 2008. The most noticeable decrease month over month was May 2009 compared to May 2007 which was 62.50% and 39.24%.
Average Sold Price
In May, single family detached homes that sold in area 7 sold at an average of $145,286 which was 4.26% lower than in April and a decrease of 11.68% when compared to May 2008. Looking farther back to May 2007 and 2006 the decrease is 13.29% and 12.21% over May this year. Taking seller concessions into account the average sales price dropped to $143,297 in May.
Average Days on Market
Of the homes that closed in May, they were on the market for an average of 93 days before receiving an offer. That was the same than the month earlier 25.68% greater a year earlier, and 75.47% greater than in 2007. 32 Single Family homes sold in less than 100 days while 16 homes in 100 days or greater.
Seller Concession
27 out of the 48 homes (or 56%) that sold in May offered the buyer a concession, usually closing costs. The average seller concession was $3,537.
Buyer’s Agent Bonus
Offering a bonus to a Buyer’s Real Estate agent is widely thought to produce a quicker sale and net the seller a higher return. In May there were 2 such property that offered an agent bonus. Resulting in an offer netted the seller's an average of 80.47% of the list price and sold on average of 63 days.
Sold Price as a Percentage of Tax Value
44 of the homes that sold in May in Area 7 had a tax value assigned to the listing. The homes that sold in May sold at an average of 101.70% of their listed tax values. 22 homes sold below tax value, the lowest of which was an REO which sold at 21.46% of its tax value. There was only 1 properties selling for well over tax value this month. With this extreemly high value removed the average drops to 92.11% of tax value.
Sales Price as a Percentage of Original List Price
Of the homes that sold in May in Area 7, sellers received 88.40% of their original asking price. With seller concessions included, sellers received on average 87.19% of their original asking price.
For homes listed for sale for less than 100 days, those sellers received 89.96% of their original asking price including concessions while homes listed for greater than 100 days received only 81.65%.
Buyer Financing
Of the homes that sold in May, 23 used FHA, 18 used Conventional Financing, 2 VA and 5 cash.
Single Family Homes in Mecklenburg County North CarolinaArea 8 including:
Charlotte Neighborhoods including Abernathy Woods, Allenbrook, Americana Park, Ashley Park, Beechwood, Belemeade Green, Biddleville, Brookfield, Brookmere, Camp Green, Catawba River, Cedar Mill, Chapel Grove, Cherokee Forest, Cheshire Commons, Clanton Park, Clinchfield, Coulwood, Creekside, Cross Creek, Dowd Heights, Eagle Nest, ,Enderly Park, Feathersone Ridge, Forest Pawtuckett, Glendale Acres, Glenhaven, Glenwood, Greenwood, Hammonds Station, Harbor Estates, Harbor House, Heather Glen, Hidden Creek, Homestead Glen, Hoover Acres, Hoskins, Hunter Ridge, Lakewood, Lela Court, Lweis Forest, Long Creek, Marsh Estates, McGregor Downs, Mellwodd, Melynda Woods, Montclair Park, Moores Chapel, Moores Park, Morningside, Mullberry Pond, Northbrook, Northwoods, Oakshire, Oakview Commons, Parkview, Patriots Point, Pine Island, Regal Heights, Reid Meadows, Reid Park, Running Dear, Seversville, Smallwood, Sonoma Village, Stone Bluff, Stoney Pointe, Summerville, Summit HIlls, Tanglewood, Thomasboro, Thrift, Todd Park, Town Park, Valley Ridge, Villages of Ashley Ridge, Waldon Park, Wandawood, Watauga Village, Wesley Hights, West View, Westborne, Westcherster, Westerly Hills, Westerwood, Westmoreland, WEstwood Forest, Wildwood, Wilson Glen, Winding Creek, Windsong, Windy Rige, Woodland Station, Woods at Coulwood and Woodsdale Acres.
Data gathered for May 1, 2009 - May 31, 2009
Active Listings
In May, 112 single family detached homes were listed for sale in Area 8 North Carolina. May's new listings were 3.45% less than in April and 25.33% less than were listed in May 2008.
Pending Units
57 Single Family homes received a contract. This was 21.92% less than received a contract in April and 36.67% fewer contracts than in May 2008. When compared to May 2007 and 2006, 54.03% and 100.17% fewer contracts were written and accepted this past May.
Sold Units
49 Single Family Detached Homes were sold in May 2009. This was an increase of 2.08% from April and a decrease of 12.50% from May 2008. When compared to May 2007 and 2006, 60.80% and 99.98% fewer sold units than this past May.
Average Sold Price
In May, single family detached homes that sold in area 8 sold at an average of $84,255 which was a 4.36% increase than in April and a decrease of 22.27% when compared to May 2008. This is also a decrease of 100% over May 2006. Taking seller concessions into account the average sales price dropped to $82,639 in May.
Average Days on Market
Of the homes that closed in May, they were on the market for an average of 150 days before receiving an offer. That was a 41.51% increase than the month earlier 94.81% more than a year earlier and 127.27% more than in 2007. 29 Single Family homes sold in less than 100 days while 20 homes in 100 days or greater.
Seller Concession
19 out of the 49 homes (or 39%) that sold in May offered the buyer a concession, usually closing costs. The average seller concession was $3,201.
Buyer’s Agent Bonus
Offering a bonus to a Buyer’s Real Estate agent is widely thought to produce a quicker sale and net the seller a higher return. Only 1 closed listing offered such a bonus. The proeprty offering a bonus was on the market for 86 days and received 81.15% of their listing price.
Sold Price as a Percentage of Tax Value
48 of the of the homes that sold in May in Area 8 had a tax value assigned to the listing. The homes that sold in May sold at an average of 73.43% of their listed tax values. 40 homes sold below tax value, the lowest of which was an REO which sold at 28.05% of its tax value which according to the listing needed renovation. 1 property sold for well over 100% of the tax value (normally new construction, extensive renovations and land). With that property taken out of the mix the average drops to 70.43%.
Sales Price as a Percentage of Original List Price
Of the homes that sold in May in Area 8, sellers received 81.88% of their original asking price. With seller concessions included, sellers received on average 80.58% of their original asking price.
For homes listed for sale for less than 100 days, those sellers received 88.48% of their original asking price including concessions while homes listed for greater than 100 days received only 78.86%.
Buyer Financing
Of the homes that sold in May, 18 used FHA, 9 used Conventional Financing, 1 VA and 21 cash.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
;)
;)
