Homebuyers in North Carolina have a bit more responsibility than homebuyers in other states. Here’s why.

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In North Carolina, every real estate contract includes a due diligence clause, which usually eliminates contingencies in them. In the past, the purchase of a home was contingent upon inspections, appraisals, financing, etc. But not anymore. Instead, the buyer must do their due diligence during the due diligence period and determine if they are willing and able to move forward with the purchase of the home.

The due diligence fee and due diligence time frame are both always negotiable. During the due diligence period, you’ll need to do three things as a buyer:

1. Obtain financing for your new home. This includes having the home appraised and getting a mortgage approval if you’re taking out a loan or securing funds if you’re a cash buyer.

2. Have the home inspected and agree upon repairs with the seller. Keep in mind that the seller is not obligated to repair all items on the home inspection report or any items for that matter. Repairs are completely negotiable between the buyer and seller.

3. Get any other approvals you might need. These could include HOA approval for a pool, fencing, or any other exterior change. If you plan on doing renovations to the home, you’ll want to have a contractor provide you with pricing estimates for the renovations.

Once your offer is accepted by the seller, the due diligence money will be non-refundable. Essentially, you’re paying the seller to allow you to confirm you are willing and able to move forward with the purchase of the home at the agreed-upon price.

As a buyer, you want as long of a due diligence period you can get for as little money as possible. As a seller, you want the opposite. The earnest money becomes non-refundable once due diligence ends. During the period, it’s fully refundable to the buyer if they choose to terminate for any reason at all.

After due diligence ends, the buyer and seller can truly begin the moving process. Before that starts, however, it’s time for a final walk-through before closing. This is done for the following reasons:

1. To make sure the home is in the same condition as when you last saw it.
2. To make sure the seller left anything they were supposed to have left in the home.
3. To make sure the seller removed everything in the home they should have taken with them.
4. To make sure all repairs have been completed by the seller.

If you have any questions for me about this topic or about anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

If you’re thinking of buying a home soon, there are five steps you need to take to make sure you get the best deal possible.

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Here are the five easy steps that will guide you through the purchase of your next home:

1. Reach out to a Realtor who specializes in your area. You’ll need to develop a game plan to coordinate the move into your new home with the sale of your existing home. Oftentimes, you have to choose between either making two moves or having two mortgages.

2. Determine your wants and needs in your new home. How many bedrooms and bathrooms, and how much square footage, will you need? Do you have any special requirements, such as a guest suite on the main level? Another important consideration to make is whether you want a move-in ready home or one that needs some updating.

3. Know where you want to live. How close do you want to live to where you work? Make sure you understand both the distance and the drive time, as traffic can be a huge factor in terms of your commute around the Charlotte area. Also, are schools important to you? We have a lot of choices between private, public, charter, and magnet schools, so make sure you do your homework in this regard. It’s also important to consider what you enjoy doing when you’re not working so you can live near what you love.

4. Get pre-approved for a mortgage before starting your home search. You need to know how much you’re approved for, how much you’re comfortable paying each month, and how much house that amount buys. Keep in mind, what you’re approved for and what you’re comfortable paying may not be the same thing. It’s important to be able to rest easy each night after you’ve made your monthly mortgage payment.

5. Submit an offer. Work with a real estate professional and begin with the end in mind. Develop a strategy for your initial offer and know how much you’re willing to pay for the home. Have a clear goal and clear expectations as to where you’ll land in terms of price. In the suburbs above the $1 million price point, you’ll likely be able to negotiate a substantial amount. For homes closer to the city and under $300,000, however, you might have to pay above list price.

If all else fails, just remember step No. 1 and consult with a local real estate professional.

If you have any other questions about buying a home or you have any other real estate needs, please feel free to reach out to me. I would be glad to help you.

We took a look at the latest real estate numbers from the first half of 2018 and compared them to what we saw in 2017. Here’s what we saw.

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Today I want to give you a quick update on the town of Mooresville, located in Iredell County and just north of Charlotte. Here’s what’s been going on.

There were 855 home sales in the first six months of 2018, which is nearly identical to the 859 sales that we saw during the same period in 2017.

Homes in Mooresville are selling in an average of 92 days, which is up from the 89-day average we saw in 2017.

Homes right now are selling for about 98% of their list prices, which is up from a 93% list-to-sale ratio last year.

The average sold home price is just under $416,000 through the first six months of 2018. This is way up from last year’s $374,000 average. It’s up by 11% to be exact.

Resale homes make up about 75% of our sales in Mooresville. That means roughly one out of every four homes sold is new construction.

The luxury market here makes up a bit more of the overall market in Mooresville than in some other areas. Homes sold over $700,000 equals about 10% to 11% of our market. There have been 1,046 homes sold over $700,000 sold there in the last 18 months.

What is drawing people to Mooresville? Mostly low taxes, great schools, and great access to Lake Norman.

If you have any questions for me in the meantime, please feel free to give me a call or send me an email. I look forward to hearing from you soon.

Today I want to update you on the market in a great place called Fort Mill, South Carolina.

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Today I want to share some sales data from the Fort Mill market and compare the first six months of 2018 to the first six months of 2017.

This year, there have been 621 homes sold, compared to 616 sold during the same time period last year.

Meanwhile, homes are selling in an average of 70 days, which is an increase from last year’s 68. Although homes may be selling a little slower this year, they are still selling at the same list-to-sales ratio as 2017, at 98%.

The average sale price this year is slightly over $373,000, while it was about $366,000 last year. This is an increase of about 1.8%. This is not a tremendous increase considering the activity.

Fort Mill is comprised of a lot of new construction and growth opportunities. The resale homes make up about two-thirds of the sales while one-third of the homes are new.

3.6% of the homes that sold in the last 18 months were in the luxury market, which consists of homes worth over $700,000.

If you have any questions or are interested in buying or selling a home, please feel free to contact me. I look forward to speaking with you soon.

Cool Pools

One question I am often asked by home owners is “We are thinking about putting in a pool, how will this affect the resale of our home”?  I make sure owners realize a pool is an “investment” in lifestyle and family fun, not a financial investment.  In the Charlotte marketplace, an owner of a custom home might expect to spend $70,000 – $100,000 or more on a pool.  This cost includes the pool, possible hot tub, decking, fence as required by code and landscaping.  If you add an outdoor kitchen or bar, a bath and maybe a fireplace, then of course, the costs goes up.  As a pure financial investment is concerned, an owner of a home might expect about a 30% return on this investment, that’s it.  Don’t put in a pool because it’s a “good investment”, put in a pool because you are making an investment into building memories with your family.

Some families will not buy your home because it has a pool and they don’t want the upkeep, maintenance and expense that comes with owning a pool.  Other families have safety concerns of owning a pool,  especially with young children and see it as a potential liability.  However, some buyers will specifically want to buy a home with a pool because of all of the reasons you are probably wanting to put one in.  So, at the end of the day, if you plan on staying in your home for several years and enjoy coming home from work and relaxing by the pool and it fits your lifestyle and budget, then go for it!

Cheers!

Ben Bowen

I recently did an interview for a radio show that aired on ABC News Radio and FOX Business News and I was asked the following question:  “Ben, what is considered a luxury home?”  That’s a great question!!  Real estate is very much like the weather in that it is very localized, what might be a luxury home in Charlotte might not be considered a luxury home in another market.   In Charlotte, luxury homes begin at approximately $750,000. Homes sold with a list price of $750,000 or greater made up 2.7% of the homes sold in 2013. When you cross the magic million dollar threshold, those homes sold made up only 1.2% of all homes sold in the metro-Charlotte area.

If you are considering buying or selling a luxury home, you want to make sure you are working with an agent who specializes in luxury homes and who has a great understanding of that market. Your agent needs to be comfortable and skilled in negotiations with this clientele.  Your agent should also be knowledgeable of the products and features found in a million dollar home compared with a typical home.  Remember, the million dollar home costs approximately 5 times what the average home in Charlotte sells for and they are built with completely different products and features.

If you are in the market to sell a luxury home, you want to be certain your agent is skilled with marketing homes in this price range and has a creative and direct plan for marketing your home or property.  You want an agent with a lot of contacts in this price range.  Your agent should also know the other agents who would typically have buyers in this price range.

There really is no substitute for experience.  I have personally closed more than 65 homes priced above $1,000,000 and it is this experience by having numerous sales above $1 Million that has enabled me to be a valuable asset to my luxury home clients.

 By the way, the home pictured above is located at 1929 Iverson Lane and is currently offered for sale by Ben Bowen Properties for $2,850,000.

Cheers!

Ben Bowen

Charlotte’s hottest selling neighborhood isn’t even in Charlotte, it’s in Fort Mill!   Springfield is as hot as any community in the Charlotte area offering a great mix of brand new homes from the upper $200’s, golf villas from the $300’s to custom homes in excess of $1,000,000.

Lennar Homes has sold 37 homes during their first 16 months in Springfield and is now taking pre-sale orders for their next phase.  David Weekley Homes opened their model home mid-December and already has 14 homes sold with many of them located on the 18th hole of the Springfield Golf Course.  Both Lennar and Weekley have seen significant price increases since beginning sales in Springfield since buyers continue to view Springfield as not only a strong investment, but just a great place to live.

There are currently an incredible 28 custom homes under construction that are already sold.  Not only are all 28 of these homes already sold, but available homesites to build on are almost gone!  What other neighborhood has 28 custom homes under construction, 14 portfolio homes under construction and 7 portfolio homes presold for the next phase?  That is 49 homes currently under contract in one community!!!  Incredible!

Springfield offers low Fort Mill taxes, excellent schools, wonderful amenities and easy access to both Uptown Charlotte and to Rock Hill.  Regardless of what has happened to the housing market, these strengths of Springfield remain unchanged.  The amenities found in Springfield include 3 swimming pools, tennis courts, club house with exercise room, aerobics room and full-time activity directors who put on great programs for the kids and adults year round.  There is also a championship 18-hole golf course designed by Clyde Johnston.  In addition to the wonderful amenities found in Springfield, there is a 2,300 acre greenway located across the street that will never be developed.  The Anne Close Springs Greenway offers 32 miles of trails for walking, mountain bike riding and horse back riding.  If that is not enough you can camp at one of their campsites and fish in one of the five ponds found on the property.

If you are in the market for a resale homes in Springfield, you better hurry.  There are currently only three custom resale homes available.  These three homes are priced between $664,900 and $875,000.

If you would like more information on a home in Springfield, please feel free to call me at directly at 704-572-6070 to discuss.  I worked there for the developer from day one and know the community intimately.

Cheers!

Ben Bowen

I am often asked, “Should I go ahead and list my home now or wait until Spring”?

That’s a great question and here are the facts.  Just remember this acronym:   SOLD

Sales are at the fastest pace in 5 years

Offering of available homes is low today

Listings are selling for a greater percentage of list price now

Demand is high

There will be more homes on the market in a few months than there are today.  This means you have less competition when selling your home now.  Part of the reason some markets are experiencing a demand frenzy is because there simply aren’t enough “good” homes for sale.  “Good” meaning a home that is priced correctly, shows well, and is updated.  If you think you own a “good” home and would like to sell it, contact us for a free market analysis today.

Cheers!

Ben Bowen

The Charlotte real estate market posted some very strong gains in November compared with November 2011.  Home closings were up 21.8%, the median sales price was up 5.8% and the average sales price was up 3.6%.  The number of homes for sale dropped 29.4% while the number of homes closed rose 21.8%.  With fewer homes for sale and more homes being sold, this leads to higher sales prices which is reflected by the increase in the increased average and median home price in Charlotte.  The months supply of available homes is done 45.7%, the days on the market is down 9.4% and the cumulative days on market is down 15.6%.

So, the big question is what does this mean?  The Charlotte housing market is certainly gaining ground and there is no doubt that we have left the “Market Bottom” in the rear view mirror.  As home prices continue to increase, expect more homes to come on the market.  There are actually some very hot neighborhoods in Charlotte where there are not enough homes available to meet buyers demands.

If you are looking to buy or sell a home, now is an excellent time!

Cheers!

Ben Bowen

I recently wrote a blog about how the Charlotte home market is doing and I have been asked how that compares to the “Luxury Home” market.  Generally, I believe that the term “luxury home ” is a relative term which starts at around $500,000 in Charlotte.  However, for this report, I researched home sales for homes with a list price of $1,000,000 or more for the metro-Charlotte area.

Here are the stats:

Median Sales Price is up 3.1%

Average Sales Price is up 4.7%

Sales Price To List Price is up 2.9%

Days On Market is down 12.1%

So, the luxury home market is holding up very well in comparison with the general Charlotte Metro area.  Many “Move Up” buyers are taking advantage of the historically low interest rates which are providing buyers with incredible buying power.  Although sellers are taking a hit on their current home they are selling, if they are moving up in price point, they can expect to make up for the loss they are taking on their current home and then some on the home they are purchasing.

So, if you are in the market to sell a luxury home, now is better than a year ago.  Although we are no where near the glory years; the market today is better, not worse, than it was one year ago.

Cheers!

Ben Bowen