Foreclosures in the Neighborhood

Dear Rich,

We live in a new large sub division in South Carolina South of Charlotte, NC. There are literally 2 dozen homes for sale in the neighborhood (there are about 500+ total homes). Some of these are foreclosures, including the home next to mine which has been empty since December.

Now that the home next door is listed (it took a long time), they have the price listed at almost $100K less then the previous owner bought it for. I am concerned that this house has been vacant for so long and given that it is listed for so much less than the original value, it is having an adverse affect on my home value.

Is there anything that I can do to help sell the house next door, or help raise the value of mine in this situation?

JW - South of Charlotte.


Dear JW -

You are in a pretty common, however unfortunate situation. Luckily, the good news is that the real estate agent that now has that property listed has it in their best interest to make sure that it sells quickly, and obviously, they want it to sell at as high a price as possible.

The agent should make sure that the property is cared for, so there is nothing that you necessary need to do with that, however, you can be sure to make your home and property look as good as possible. If someone is looking at becoming your new next door neighbor, they will want to know that you take pride in keeping your yard and house well maintained.

The market has caused the foreclosure rate to go up, and home values to go down. But the bright side is that you live near Charlotte, which remains one of the stronger and steadier markets. Even better--the area you are in is very popular. I suspect that the house next door to you will sell quickly and when it does, your home value will go up slowly over time as it should be.

Rich Ferretti
http://www.richferretti.com/

Want more information about the Charlotte area real estate market? Check out www.richferretti.com

Do I need a real estate agent if we build a home?

Dear Rich -

My wife and I are moving to the Charlotte area from Florida and we would like to build a new home. We have been up once before to check out the area and we would like to plan another trip within the next few weeks to look at neighborhoods. My question to you is if we are looking at buying a new house, is there any benefit to working through a real estate agent? Wouldn't it be more cost effective to work directly with the builder?

Thanks for your help on this--we have always bought pre-existing homes before and I want to make sure we make the right decision.

Bob - (Tampa transplant)


Dear Bob -

It is definitely in your best interest to have an agent when dealing building, or purchasing a new build home from a builder. Many times the buyers think they will get a better deal if they do not bring their own agent. Nothing could be further from the truth. While there are some differences in the transaction, there is much that is the same from buying from another owner: you need someone to look out for your best interests.

When you look at a planned or new development, the builder's salespeople will be very friendly and helpful. But remember, they work for the builder, and are being paid to sell you a house at the highest price they can get from you. A buyer's agent will know what can be negotiated, and give you an objective assessment of the neighborhood, homes, and construction. Additionally, a buyer's agent will be able to make sure the contract includes everything you want, and excludes any surprises. Remember, this is a 150K, 250K, 350K decision. You need professional representation from someone who understands this market, real estate and property contracts! This is an investment--so it is important to protect yourself--use a Buyer's Agent!

Best of luck with your move, and feel free to call my office ( 704-564-0807) and we can set up an appointment to go meet with some builders.



Would you like more information on new home purchases and why buyers should use an outside Realtor/Broker not the sales agent at the builder’s office? Email Rich Ferretti.

Want more information about the Charlotte area real estate market? Check out http://www.richferretti.com/

Old House New Home?

Dear Rich:
My wife and I have to make a choice between an beautifully updated home in an older neighborhood in Charlotte or a brand new home in a more modern neighborhood, with a ton of amenties just outside the city. The first house in the older neighborhood has almost everything I want and is much larger, but I want to make the best investment. We may have to move again in about 5 years (my job has me travelling a lot) and I want to make sure we do the right thing.

I appreciate your advice!
Shane -- Charlotte Newcomer

Hello Shane -- and welcome to Charlotte. I hope that I can help you narrow down your property choice.

If your goal is to buy a home for its later resale value and the one you are leaning towards buying in the older neighborhood, you will want to find out if is at the upper end of home values for that neighborhood--especially if it has been updated and others have not. If this is the case then it may not be the best choice.

If the older home in Charlotte is similar or lower in price to the others in the neighborhood, then there should be no problem, because pricing should be considered in relation, (generally) to the local neighborhood and not compared to homes in other parts of town.

Is the neighborhood on the decline or is it a neighborhood that is improving? And are other homeowners doing updates, keeping their properties landscaped etc. It could turn out to be a very good investment as long as you don't pay too much because of the recent improvements, when you could find another home in the same neighborhood less expensively--one that you could update yourself.

But remember that you also buy a house for its value to you as a "home." If you feel comfortable, happy, and excited about the older home, and you like the neighborhood, this is a factor of equal or greater value than its ultimate resale price. This is an investment, but it is also where you and your family will live!

If you would like more information about the Charlotte area, I would be happy to answer any questions you might have -- just comment below.

Happy House Hunting
Rich Ferretti

Want more information about the Charlotte area real estate market? Check out www.richferretti.com