Where Do We Go?

One of the questions I am often asked in the current seller's market, which is a very valid one, is once I sell this home, where do I go next? If it is such a seller's market and by selling this home for top dollar, won't I have to pay top dollar for the next home I buy? That doesn't necessarily have to be the case. Also, I am not advocating selling your home just because you will get top dollar, there has to be additional reasons to sell.

First we should discuss the reasons for selling your home. We find on average, people move homes about every seven years. This is typically due to changes in life or lifestyle, such as getting married, having children, those children growing, job change or promotion, children leaving the home, or just wanting a smaller home or yard to maintain. While you will probably get more on the sale of your home now than you would in other markets, unless you have another reason besides purely financial, I would not recommend selling.

Now we can go into my reasoning why selling now may be ideal for you. If you are up-sizing your home, besides the obvious life change events discussed in the last paragraph, it makes sense to make a move now as opposed to waiting for additional reasons.

First, interest rates are still at historically low levels. By moving now you can acquire a new home with a lower monthly payment than you will be able to if they increase. A rate increase of 1% will decrease your buying power by over 11%.

Additionally, while we are in a seller's market in most price points, the higher you look in price range, the more balanced the market is. I am not going to call it a buyer's market, but it is much closer to a stable market when you begin to look at homes priced over $400,000. This means if you are selling at a $250,000 price point you are not buying into that same seller's market that you are selling in.

Finally, making your move now may make sense simply due to the fact that by waiting, you are prolonging your future mortgage payments. If you wait for a market shift in all segments, that may take two years, five years, ten years, who knows really. by waiting you are just extending how long it will take to pay down that next mortgage, which may just be further into your planned retirement. Mortgage payments are one of the items that most retirees would like to have off their plate before reaching the typical reduced income of that phase of their lives.

If you or someone you know is considering buying or selling a home, please put me in contact with them. I would be grateful for the opportunity to go over this and other information in more detail. As always, I am here for any real estate needs.

Importance of Photography

These days, the cameras on everyone's smart phones are getting better and better. And with this change, everyone seems to think they are a photographer. While this might be the case for your "selfies" and casual photos that you plan to post on Facebook and Instagram, this is not the case for when you are listing your home for sale. Nothing short of a professional photographer who specializes in real estate should be acceptable for your listing photos. If your potential listing agent is not providing such a service, you may want to look elsewhere.

Looking at NAR statistics, we know that 90% of home buyers search online at some point during the process of finding their next property. This online search will typically be your first impression on the potential buyers. You only get one chance to make this impression, so why not put your best foot forward?

A recent report by Inman tells us that 1 in 3 buyers has made an offer without actually seeing the property they are offering on in person. Do you think people are going to be making offers on properties unseen properties with your listing agent taking photos with their iPhone? Unless they have some professional editing software and great add on lenses for their phone, this process is not going to do your home justice in the eyes of potential buyers.

As part of all listings, I have a professional photographer come and capture the true essence of your home. I also bring in a stager for a consultation to make sure that when we do take the photos, your home is ready and looking its best. See more about what sets me apart in the video below.

If you have any questions about listing your home, the process, or anything else about real estate, do not hesitate to contact me.

Also, if you are curious to the value of your home, click here.

Steele Creek May 2017 Update

Steele Creek is an area of Southwest Charlotte that has been one of the hottest real estate markets in the area. I have witnessed 15% increases in price in individual neighborhoods in the past year in some cases. Before we get into the current state of the market for that area, let's go into a little more detail of some of the things this area has to offer. for its residents, which helps us to explain the current conditions.

Transportation

Transportation is one of the main benefits of Steele Creek. Steele Creek is located just outside I-485 between I-85 and I-77 on the Southwest side of Charlotte. It is also a short commute from this area to the Charlotte Douglas International Airport, which is a regional hub for American Airlines.

Entertainment

Steele Creek is also in proximity of some of Charlotte's great entertainment choices. Located in Steele Creek on the border of North and South Carolina is Carowinds Theme Park, which includes a water park as well. Just a short trip up I-485 North from this area is the US National Whitewater Center, which includes whitewater rafting, zip lines, climbing walls, bicycle trails, and much more. Another new addition to Steele Creek is Topgolf, which has put a whole new spin on the traditional driving range.

Shopping

It doesn't matter what you are searching for, you can buy it in Steele Creek. The intersection of South Tryon Street (NC-49) and Steele Creek Road (NC-160) has long been a center for commerce. This intersection has three different shopping centers, including groceries, big box stores, clothing, local dining options, and fast food options. All along South Tryon you will find shopping. One of the newer shopping areas in Steele Creek is in the Berewick area. This area is centered around the Charlotte Premium Outlets and has been building more retail, dining, and grocery stores around this hub. There is also a plan for a 1,400 acre mixed use development called the River District slated to begin soon.

Market Conditions - 28273 Zip Code

The real estate market in Steele Creek is one of the hottest in the area. If you are a Buyer looking to move to this area, you can expect a lot of competition in your search. If you are a Seller, it is a great time to list. Sellers are typically seeing short times on the market, less competing listings, and, in many cases, multiple offers (when a home is priced properly).

Some of the tell-tale indicators of a market are statistics such as months of inventory, list price to close price, and days on market. Let's take a look at these for Steele Creek, in particular the 28273 Zip Code.

Months of Inventory

Months of inventory in a market are determined by dividing the number of homes available by the number of homes that close per month on average. A market with six months of inventory is considered stable. Here is what the month of May looked like for Steele Creek:

As you can see, there is very low levels of housing supply under $250k. Even above this price point the inventory is still low, but it is not as dire of a situation for available properties. This low inventory will lead us into the next two metrics.

Days on Market

With such a low inventory, it should not come as a surprise that once houses are listed, they are scooped up right away. Looking at the same price ranges for the 28273 Zip Code, we can see that homes are not lasting once listed.

Not a surprise here that the ranges with the lowest inventory have the shortest time on the market.

Percent of List Price

Now that the days on market and low level of inventory are known, it should not come as a surprise that Sellers are having their demands met for the most part when it comes to their asking price.

Again, not much of a surprise here. Buyers are having to come to the Seller's demands in these cases. And since these are averages, it is not uncommon for a home to be sold above the actual list price.

Having someone to represent you who understands the current market is of utmost importance in these times. There is a lot of competition out there, you don't want to get left behind.

Home Improvements - Best Bang For Your Buck

When preparing to sell your home, people always wonder what improvements they can make that will get them the most money for their home. Some wonder, is it better to make the changes now or let the buyer come in and make their own design decisions? It is a tough question to answer and can really go either way. Some buyers like to add their own personal touch to their new home, some want to move into a home that is move-in-ready.

If you are considering upgrading your home before moving, one thing to be careful of is over-improving. By upgrading features of your home to a level that is not seen elsewhere in the area, you may put appraisers in a tough spot. While you and the buyer may feel the home is worth that much more due to the upgrades, the appraiser, and ultimately, the bank may not agree.

Let's take a look at the top five improvements that generate the greatest return on investment. These were certainly a surprise to me! 

Attic insulation?!?!? Where is the fun in that? I guess energy efficiency and lower electric bills are something we can all understand would be of value to home buyers. I imagine that even if you weren't selling, as your home is aging new insulation can do wonders for you as well, paying for itself in a relatively short period of time.

Now for the five worst returns:

  

Pretty amazing, the worst returns are in the areas that most people look to improve prior to selling. Three of the five worst returns we see are on "upscale" remodels. It could be that buyers may not have the same upscale tastes as the sellers.

Even with this new knowledge, we know kitchens and baths are what sells. Upgrading these will make your home sell faster, but it is a fine balance between what they will cost and what they will return, in both money in your pocket and time on the market as a seller. If you are considering remodeling to sell, consider contacting a Real Estate Professional to give you an idea of what your home is worth in both cases, then decide whether or not it is worth it!

Getting Ready to Sell

There are some items to take care of when getting ready to list your house for sale. Taking care of these tasks up front can help your house sell faster, make packing easier, and attract the most prospective buyers.

De-clutter

This is the most important thing that you can do. You are planning on moving, so why not get a head start on packing? Start by removing any personal items from your home. We want buyers to imagine their family and personal items when they visit your home, not see your items and think about someone else who is living there. Also, pack up any non-essentials. The less clutter in your home, the larger it will look. We don't want buyers focusing on the items in your home, but the home itself. Along with this, make sure to secure any valuables that may be out. You will have strangers coming through your home, so try not to leave anything of significant value in plain site. They will be accompanied by an agent, but they could sneak off and it is better to be safe than sorry.

Staging

After you clean up your home, it might be time to move some furniture, do a little light redecorating, or possibly change some paint colors or flooring. One of the services I offer is having a professional staging company come through and make some suggestions of what can be done to make your home show better. Sometimes it is as easy as changing light bulbs, but could also include new wall colors.

Prepare for Photographs

Over 85% of buyers first view a home online, so your photographs are of utmost importance. Cell phone pictures will not cut it. These have to be done professionally, which is another service I include for my listings. Make sure the house is ready for the photos to be taken by taking care of the items mentioned above, opening curtains, and have all lights turned on.

When your house is listed, it is recommended that you keep it as close to the condition in the photos as possible. When leaving prior to a showing, make sure lights are turned on, blinds are opened, AC is set nice and cool, and if possible, play some light music in the background. The goal is to make the potential buyer as comfortable as possible when they view your home so they can see themselves living there!

Navigating the Current Seller's Market

There is no question that we are currently experiencing a seller's market right now in the Charlotte area. Homes in desirable areas are coming on the market and going under contract with multiple offers in a matter of hours. It is definitely a great time to sell, but if you are selling, where are you going? You are just going to have to buy into that same seller's market, right? Yes, you will, but depending on the price point you are selling at and the price point you are buying in, it may work out to your advantage.

Market Shift?

I have been hearing rumblings that the $350,000 plus market is showing a shift in recent months to actually lean towards a buyer market. While it might be shifting slightly, this isn't quite the case yet. In that range, we are still under six months supply (six months supply is considered a stable market). The key to our current market is that even though the $350,000 plus market is still slightly a sellers market, the $100,000 to $200,000 range and $200,000 to $350,000 range are in a super sellers market, territory that has not been seen in the time for which Charlotte MLS data is available (January 2004 on).

Months Supply

This first image shows the number of months of housing supply there is currently on the market. Months of house supply are determined by dividing the number of homes per sale by the number of homes sold per month.

As stated earlier, these are levels not seen before in the period for which data is available. While we have been in a steady decline recently, the previous trough for months supply of the $100,000 to $200,000 range and $200,000 to $350,000 range both occurred in December 2006 and was 3.8 and 4.5 months supply, respectively. We currently have over three times less supply in this lower range!

Percent of Asking Price

Here we can see the percent of original asking price to sale price. Again, we run into results that have not been seen in the time period for which we have data.

As we can see, the lower priced houses are selling (on average) for 100% of the original asking price. And this is for the entire Charlotte MLS, meaning that some areas are higher, some are lower.

Days On Market

Here are the average number of days on market for for each of the different price ranges. These numbers speak for themselves.

What Does It All Mean?

While it may seem daunting or like a long shot to find a great property to buy in this market, having the right realtor who understands the market and how to create strong offers is of utmost importance. Also, if you are looking to make a move up, this is a great time. While you would not exactly be buying into a buyer's market, moving up provides an excellent opportunity to sell in an extreme seller's market and purchase into one that is quite a bit less competitive.

Also, with the current interest rates, locking one of those in for thirty years at historically rock bottom rates is a great idea.

Do I Really Need an Agent?

When buying or selling a home, many people feel it is a venture that they can pursue on their own. In reality, there are many complexities in the transaction process that an individual who buys or sells a handful of times in their life does not need to know, and really shouldn't waste their time learning. You will probably get as many cavities in your life as real estate transactions. Does it make sense to try to fill them on your own? It doesn't to me.

When buying a home, using an agent is a no-brainer. The agent's commission is paid by the seller of the home. The buyer agent works with you to walk you through the transaction, assist with coordinating financing, inspections, repairs, and closing, all after the process of helping you find and select your perfect home. Again, let me restate the most important part for a buyer... it costs you nothing!!!

Most of the time, those that try to accomplish the task on their own are home sellers. "All an agent does is stick a sign in the yard and take some pictures. As simple as that!" This is far from the truth. Some of the things an agent provides are assistance with staging, pricing, professional photos, open houses, marketing, paperwork, helping negotiate, and, probably most important, safety (more on this later)!

Surveys show that For Sale By Owner properties used the following marketing strategies:

• Yard sign: 33%
• Friends, relatives, or neighbors: 21%
• Online classified advertisements: 10%
• Open house: 21%
• For-sale-by-owner websites: 7%
• Social networking websites (e.g. Facebook, Twitter, etc.): 9%
• Multiple Listing Service (MLS) website: 13%
• Print newspaper advertisement: 3%
• Direct mail (flyers, postcards, etc.): 2%
• Video: 1%
• None: Did not actively market home: 41%

I am not even sure we can consider that last 41% as for sale.

Regardless, a great agent will use all of the above methods for every property. The more exposure your property gets, the more offers you will likely receive, and the faster they will come in.

Back to the comment I made earlier about agents providing safety. If you are selling your home by yourself, how do you qualify, verify, or screen the strangers that are coming into your house? Will they be able to buy your house? Do you really know who they are? Can you trust them?

An agent is going to have your home locked with a box that records who comes in, when they come, and how long they stayed. Your home will be shown by other agents who know their clients and verify their ability to purchase. Trust me, the last thing an agent wants to do is show potential buyers a property that they have no ability to buy. It is a waste of everyone's time.

If you are thinking of buying or selling, please reach out to me with any questions you may have. I am always available to help!