Anyone who has searched for a new home
or investment property in the Charlotte, NC, metropolitan area in the last year
or so has quickly come to the realization that this has become a red hot “sellers’
market.” Inventory of available homes in
most locations through the Charlotte area is low and buyer interest remains
strong. That often translates into
multiple offers on properties that offer good value, and contract prices are
often above listing prices. It has always
been important to give adequate thought to your precise goals and objectives
when investing in anything—stocks… business ventures… real estate. So it is sometimes surprising that prospective
homeowners and individual investors often take so little time to map out their
strategies.
At Eric J. Dorer Real Estate, our
company motto is “Solid analysis identifies great opportunities.” That
motto is true in almost any investing or business context. So it should be all that much more important
if the thing you are shopping for happens to be the single largest investment
most people make in their lives. Taking
the time to write out a list of priorities and then research how those
priorities can be met will save you a great deal of time and frustration in any
market, much less in this hot sellers’ market.
Research may cause you to refine and revise your goals. For example, a 12% annual gross yield on a
real estate investment may have been attainable with relative ease five years
ago, but you might struggle to realistically reach 10% in the current market
because other buyers continue to bid up contract prices. I don’t know about you, but I would still
rather achieve a real 10% gross yield on a property I was able to buy than no
yield at all because I could not get a property under contract and closed. Goals and strategies need to be realistic.
Likewise, I would rather find a home
while interest rates are still at almost historical lows than continue to rent
a home as interest rates and home prices rise, because I keep losing homes to
other buyers by insisting on a significant reduction from the listing price of
a home. “Lowball” offers worked in 2010
as the real estate market was flush with foreclosures and short sales. But those “distress sales” have since been
absorbed into the market, and approaching 2018 with a 2010 strategy is a
formula for frustration.
Homebuyers should take the time to write
out a list of goals and priorities—school assignments… geographical locations…
expectations of future appreciation…etc.
Then research those goals to make sure they are realistic. A qualified, market-savvy realtor is the best
source for such research. We pay to subscribe
to the databases and other sources of the most important market
information. We also deal with it on a
daily basis. “Free” sources like Zillow
and Trulia may be tempting, but the research you gather from them is usually
worth as much as you paid for it. Their
information is very frequently incomplete and out of date. Again, when a home is most often the single largest
investment a person makes, it seems foolhardy to base decisions on incomplete
and old data. This is especially so when
most realtors are paid a commission by the SELLER, even if they represent the
buyer. Engaging a competent professional
for assistance should really cost the buyer nothing. Why would anyone want to go it alone?
Take the time to carefully consider
short term and long term goals, write them out, research how attainable they
are, revise them as necessary or advisable, and move forward accordingly. “Sold analysis identifies great
opportunities.” A sold plan enables you
to act on those opportunities as you identify them. In this very hot Charlotte real estate
market, these things can go a long way toward helping you avoid frustration and
ultimately win.
For more information about the Charlotte
real estate market, and to search the entire Charlotte MLS system for all
available homes, condos, townhouse, etc.—including foreclosures and short sales—completely
free of charge, go to www.EricDorerRealEstate.com Or contact us directly. We would be happy to help you formulate a
winning strategy for this Charlotte metro area real estate market.
