Ok, so the spring market has shown up a little late but still its a market none the less.  My personal business is doing splendidly - others not so much.  The key is that my clients are looking for best buys on the market and I am uncovering new ones each day.  Finding a great deal isn't as easy as looking up an MLS listing.  In a buyers market, every home will have the description "great deal" but is it really?  In Union County, agents love posting "below tax value" and this comes immediately after the real estate in that county was reassessed.  Buyers who purchased based on that alone will be disappointed to learn that much of the county is being re-reassessed since so many people complained of the value increase. 

So for my clients, where are the absolute best buys right now in the Charlotte area?

Builder Spec and Inventory Homes

I have not been too keen on purchasing new construction homes lately because for most, builders have been lowering prices to the point where the last guy to get in may have paid 1/3 less than you did six months earlier.  That's not good for home values and in many other parts of the country, buyers have just walked away from their homes as a result.  However, many builders were caught with buyers that had to sell their home to purchase their new one.  They proceeded with the construction and when it came time to close, they couldn't handle two mortgages.  The result are inventory homes which are deeply discounted. 

The beauty of an inventory home is that they are move-in ready, usually are tastefully decorated, and carry the builders warranty.  If you're a resale home shopper looking for a new place before spring starts, finding a builder inventory home would be a great start.  As of today, I will start placing a link on my website with builder spec / inventory homes that need to be sold.  Most of the times, a competent REALTOR like myself can negotiate a price 10-20% lower than a comparable build. 

Foreclosures, Pre-Foreclosures, and Short-Sales

Yes, I sell a lot of foreclosures but that's because some represent a great deal.  Let's get one thing straight: these homes will not be around forever.  As lending standards are tightening putting aside riskier clients, the future going forward will be without these opportunities.  Therefore, smart buyers are taking advantage and buying foreclosures.  Now, not all foreclosures are a good deal and that's why you need to work with someone who is specifically competent in foreclosures.  Often times, the home went into foreclosure because of financial reasons and the buyers were otherwise very responsible.  The homes are not damaged whatsoever and it is just like buying a typical resale home but with a lower price and 1 catch.  Others were purchased as an investment and may be badly damaged.  For the right person, these can be a great homes to add to their real estate portfolio.

After all, you are most likely going to paint, may change the carpet on your next home too, personalize the kitchen so why not start with a blank slate.  Now, the twist to getting a good deal on your foreclosure is understanding the current condition.  Some may choose to bring an inspector out before they are ready to make an offer.  This can be expensive and there's no guarantees your offer will win it.  I would take along a trusted friend in the construction trade to go through and look for things which may be an issue.  Another alternative is to make up a list of items you want to look for on the house before making an offer.  If you discover something that is a problem (and ugliness isn't a problem), deduct it from your asking price.  After your offer is accepted, you will be allowed to perform a home inspection which should reveal the other issues.  The bank will not typically make any repairs so do your homework up front. 

The Market Above $500,000

The market above $500,000 has a glut of homes on the market in most areas around Charlotte.  With more homes than qualified buyers, sellers are doing what it takes make an offer stick.  Granted, this isn't everyone but I would say that for the most part, buyers have greater negotiating power.  Understand that a seller with 1 home to sell will be less flexible than a builder with 10 inventory homes to sell or a bank with 40,000 foreclosures.  However, do not just overlook a home because it is not an inventory home or foreclosure.  It could just be a screaming deal but you wouldn't know if your search was too limited. 

Today, some clients decided to pop into new construction neighborhood while they were waiting for me to arrive for a showing.  The builder has 10 spec and inventory homes for sale at a remarkable price.  However, there is a seller who has moved to another community and has a home just sitting there and it is an even better deal!  It is a great neighborhood, a good builder, and a great Weddington location.  Until now, buyers have been passing this home buy for absolutely zero reason however 11 very smart buyers will take advantage of the opportunity to live in a upscale home 10-20% less than their neighbors.

Remember that some deals are donkeys and some deals are horses.  You won't know which one you have until your agent investigates and uncovers the value. 

Your Trusted Real Estate Adviser;

Jonathan Osman
Charlotte NC Homes, Charlotte Real Estate