September 26, 2007

Show me the money, especially all of the closing costs…

Vigilance is the watchword as you take each step through the home buying process. And while I keep harping that buyers need representation, an experienced buyers broker, it is with good reason. Every step should be deliberated and scrutinized.

I urge my folks to get a Good Faith Estimate also known as a GFE and have it faxed or emailed to me so we can go over it together line by line. This step accomplishes several things:
1. The buyers become familiarized with the sometimes confusing form
2. The buyers see all of the closing costs: origination fee, attorneys, survey, title insurance, tax service fee, recording fees, appraisal, inspections and the pre-paid escrow items: property taxes and 14 months of home owners insurance.
3. The buyers then can compare various lenders’ programs.

Why am I stressing the point? Because quite often a builder will offer to pay a certain amount towards the buyers closing costs if the buyer uses the builders preferred lender.
And sometimes this actually costs more. So I always suggest still shopping around even if the builders contribution on the front end sounds like several thousands of dollars and looks like several thousands of dollars but actually isn’t.

And in the best of all worlds, I would make it feature of your purchase agreement that you see, have in your hands and your buyers broker hands, a copy of the official closing statement at least 24 hours prior to closing. How many families do you think are stressed when their belongings are in a truck, they have moved from their old residence heading towards the new house, and at the closing table, there is a big surprise. How do you head back when this happens? Get it in writing and be very clear with everyone including the closing attorney, the lender, the builder, that closing will happen when you have had 24 hours to look at every line…and further when all the repairs on the punch list are complete. Those are good reasons you need an advocate, a partner in the process.

Be careful out there. There are opportunities in this market especially in new construction but remember, there is no free lunch…and if per chance there is, be even more careful.

Lynnsy Logue is The Real Estate Lady® and Condo CanDo®, Charlotte, NC

Uptown, Mid-town and Cotswold

I am visiting different sections of Charlotte and looking at Charlotte Condominiums.
And I am keeping up with the general condominium news by reading and listening.

Curious Observations:

Iteration: A tower once announced in one year, the land for the tower was closed on the following year and now, the ownership has changed. The expected dates have changed considerably and it appears that perhaps 50% of the project is under contract with delivery in 2010. Or thereabouts. I am curious about folks who went to contract a couple of years ago and how those purchase prices hold. I know of one builder who had a clause that allowed the contract to be null and void at their call. Prices went up on materials and contracts were cancelled. Read the fine print.

Ownership and Investors:
This keeps coming up. Who bought, who is looking to flip, what are those percentages. Stopped in one small complex on my tour. A brand new complex where one third of the units are occupied by owners, one third are on the market by investors and one third are on the market by the developer.

Cotswold
I take my hat off to the developer of Rosewood at the corner of Providence and Sharon. I really and sincerely hope they make a good return. I loved the rose gardens  at the corner for decades and the grand old yellow two story home place…and  while I loved that setting, I think Rosewood is quite a beautiful accomplishment. The whole intersection has changed for the better. And the folks at Rosewood stayed the course against the naysayers. I think they were ahead of their time. Rosewood is currently on the Showcase and well it should be. Bravo!

I will be viewing and reviewing Charlotte Condominiums. If you have questions, please be in touch. I’ll try to answer them. Meanwhile check out Chuck Graham 2Q Real Estate Report on TheRealEstateLady.com.

Lynnsy Logue The Real Estate Lady and Condo CanDo in Charlotte, NC

September 24, 2007

Charlotte Real Estate News The Charlotte Market

I took a break from the real estate to work at Festival in the Park for four days. Oh, sure, it was hot and there were a zillion people but this is one of those events that has been happening for well over forty years at Freedom Park. The tents dot the park and run alongside the lake, artists and craftspeople display their wares, clowns dance with children and  parents do the hokey pokey along with their kids…and for a few days there is something that reminds me of our past. Something we haven’t torn down or turned out, something we haven’t slashed the budget on or updated the concept. Every once in a while, I need to feel a part of Charlotte tradition.

Now we are racing into October and the media is full of gloom and doom on the real estate front. Life goes on. For as long as I have lived in Charlotte, now over 50 years, I have yet to see our market reflect the statistics from across the nation. The market is here if you look for it…and you don’t have to try very hard. People are still selling and buying inside the market. Folks from other places are learning patience as they wait longer to sell their homes in Florida or Texas or even here, perhaps a newly built home purchased before a transfer. I recommend patience and prudence whether buying or selling. Of course that always applies but especially in tentative times. Charlotte is a good market.

Our good market will show through. If reading that building permits are down significantly, please know that they were up significantly as almost every builder grabbed the opportunity to join in Charlotte’s robust growth. Now you will see builders’ offering significant incentives and therein  rests your opportunity. Shop carefully, ask about warranties because some of those builders will soon disappear. Always have representation and write down everything you are told. Everything.

Lynnsy Logue, The Real Estate Lady and Condo CanDo in Charlotte, NC