Charlotte Area Real Estate Best Buys: July 2015

It is hard to believe we are already in mid-July. If there has been any change in the general market atmosphere here in the Charlotte metro area, it may have been a slight slow down in the speed of sales of REO properties. I think sellers because accustomed to receiving multiple offers promptly after listing properties, and they began to price properties too high. This has led to some of them lingering on the market until sellers became a bit more realistic. There continues to be great demand for properties priced where investors can still make a decent profit; and those properties continue to go under contract quickly. But it now appears that we may need to let some properties linger on the market until their sellers are more ready to negotiate. Then those who are in position to move quickly find good opportunities. It is almost a two-step process with some REO’s at this point—watch, wait and then act quickly after a price reduction.

Here are some suggestions for mid-July, 2015. As always, I try to choose properties for this list that fall into a broad array of investor strategies and geographical areas in the Charlotte region. The link to the individual MLS reports appears at the bottom of this email. If you see only a single line display when you click the link, look for the tab near the top-right of the page labeled “Display” and choose Full Report with photos. Here are brief summaries of each property on the list:

#1 – MLS 3068455 – This is an Estate sale in Kannapolis—a 3/2.5 home built in 1938 on 1.49 acre. It is priced at $149,000 and has a tax value of $222,600.

#2 – 3086205 – 3/2.5 HUD home with 2,138 sq.ft. of HLA built in 2008 in north Charlotte (zip code 28269). This one has been under contract that failed at least once. From the comps, ARV looks to be about $121,000. It has been reduced to an asking price of $113,300 after 49 days on the market. HUD is usually willing to negotiate when a home has been on a market an extended period of time. This one could either be a good rental or a decent flip, if HUD is willing to come down significantly from its asking price.

#3 – 3049144 – 4BR/2BA short sale in zip code 28215. I don’t usually suggest short sales for reasons most of you are well aware of (most notably the complete waste of time many short sales become), but listing price of $127,000 for this one was purportedly set by the lender, B of A. Tax value is $154,800. The house has been on the market 45 days.

#4 – 3090218 – 3/2.5 built in 2005 in Huntersville. This is also a HUD home with 42 days on the market. Listing price is $185,000, with a tax value of $193,900. Huntersville is generally a very desirable area, and good values can be hard to find there.

#5 – 3096191 – This is a 4/2.5 REO with 2,500 sq.ft. of HLA located in zip code 28215 (East-NE Charlotte). Listing price is $181,500, with a tax value of $186,500.

#6 – 3093214 – 3/2.5 with 1,958 sq.ft. of HLA built in 2006 in Kannapolis. This one is listed at $173,200, with a tax value of $211,250.

#7 – 3066664 – This REO has been on the market for some time, and under contract at least once. It is a 3/3 with a walk—out basement in Matthews. I know the area, so I know school assignment is the sought-after Providence HS, although the listing doesn’t specify this because it’s an REO. This house needs work but it is on .94 acre in this desirable area and has been reduced to $165,000. It has a tax value of $236,300.

#8 – 3092943 – 4/2.5 with 2,189 sq.ft. of HLA built in 2006 in Concord. It has been on the market 33 days. Listing price is $163,800. Tax value is $182,820.

#9 – 3097745 – This is a 4/2.5 built in 2005 in NE Charlotte (28212). It is a HUBZU ”auction” property, which is really just an excuse for HUBZU to charge a 4.5% “Buyer Premium” and a $299 web service fee. But some of these HUBZU properties can still offer good value, as long as you figure the additional fees into your cost of acquisition. Another thing to keep in mind about most HUBZU time limit bid properties is you need to inspect the property before you bid because they will not allow an inspection contingency in the contract. This one is listed at $162,700 with a tax value of $194,240.

#10 – 3093999 – 4/2 with 2,232 sq.ft. of HLA on .59 acre lot in Mooresville. This is a Fannie Mae REO with 28 DOM today (as many of you know, Fannie has a 20 day owner-occupant preference period, so this one is available to investors now). It looks pretty rough in the photos, but it is listed at $154,900 with tax value of $179,860.

#11 – 3094807 – 3/2.5 built in 2002 in Concord. This is a HUD home with 25 DOM today (HUD has a 15-day owner occupant preference period), so HUD may be willing to negotiate at this point. Listing price is $150,000. Tax value is $150,060.

#12 – 3088194 – Large 4BR/2.5 BA (2,725 sq.ft.) with a den built in 2003 in Old Stone Crossing (a desirable community in NE Charlotte). This REO has been priced too high for some time, but was recently reduced to $149,900. It has a tax value of $182,800.

#13 – 3098230 – 3/2.5 with 1,982 sq.ft. in built in 2006 in Concord. This REO has only 11 DOM and is priced at $133,000 with a tax value of $133,890.

#14 – 3092881 – This is a 2/2 on .33 acre lot close to Uptown in zip code 28205, where a lot of renovation and custom building is going on. This one has been on the market 33 days today, and is priced at $105,000, with a tax value of $143,400.

#15 – 3097557 – 3BR/1BA home built in 1983 in Matthews—desirable Butler HS and Mint Hill MS assignments. With a listing price of $78,500 and tax value of $103,100, this could be a good fast flip or a good rent-and-hold property.

#16 – 3097750 – 3/2.5 built in 2006 in north Charlotte (28206). This is also a HUBZU “auction” property, so beware of the buyer’s premium, fees and other issues discussed above in item 9. It is priced at $70,700 with a tax value of $118,400.

#17 – 3097938 – 4BR/2BA with 1,368 sq.ft. of HLA built in 1981 in zip code 28227 (East Charlotte/Mint Hill area). Listing price is $64,500 with a tax value of $96,300.

The link to the full MLS reports for all of these properties appears below:

Click the following link to view the Residential Reports:
http://matrix.carolinamls.com/DE.asp?k=331377XSXZH&p=DE-11939977-588

As always, if you have any questions about these or any other properties, please don’t hesitate to contact me.