Anyone
who has even casually looked at the metropolitan Charlotte real estate market
in the last year or so must have noticed a steady, unrelenting rise in sale
prices. One reason for this is that
inventories of properties available for resale remain very low. This gives qualified buyers less to choose
from, and those who really need to find a home find themselves bidding against
each other on properties that interest them.
It is not uncommon for homes priced at or above fair market value (as
determined by an analysis of recent nearby comparable sales) to receive multiple
offers within the first few days the property enters the market. When this happens, the seller’s agent usually
advises all prospective buyers to submit their “highest and best” offer by a
date and time certain. Then the seller
and his agent reviews all competing offers received, sometimes accepting an
offer well above listing price. This is
common practice in this very “hot” sellers’ market.
Of
course, offers need to be screened and managed carefully. What good is a high offer if it comes from a
prospective buyer who has not been pre-qualified for the financing they need to
close the purchase? Likewise, a high
offer that is contingent on the sale of the buyer’s home in another state may
be a formula for wasted time—especially if that home is not already under
contract, pending closing on a specific date.
When your home goes under contract, its status changes in the databases
visible to other buyers and any momentum developed with active, otherwise
qualified buyers can be quickly lost if you go under contract with a buyer who
may just be wasting your time. It is not
enough to expect a hot market will sell your home for you. There are very important considerations
relating to screening the buyer, negotiating and structuring the deal, and
preparing the legal documents, for example, that can make all the difference
between successfully maximizing your return on investment and getting involved
in an exercise in frustration and time-wasting.
Another
important feature of the current real estate market is still very low mortgage
interest rates—about 3.75% for a 30 year mortgage as of the week of this
publication. This not only makes your
current home more affordable to prospective buyers, but it also makes your next
home more affordable to you, should you need or desire financing to make your
next purchase.
I
know, some readers may be saying “Why should I sell now, only buy another home
in this current sellers’ market?” For
some people, that may be a very reasonable observation. But if you are able to maximize your sale
price, then find a home that needs repair or updating… or downsize to a smaller
home…or move to a great community nearby that may not have seen the sort of
appreciation your current home has seen in recent years… it is possible to
leverage this market to your advantage.
It really isn’t that difficult, with the help of someone who has the
expertise and resources guide you through the process successfully.
The
bottom line is this market presents an extremely favorable time for someone to
sell a home in the Charlotte metropolitan area.
Whether you are an empty-nester looking to downsize or someone who
simply wants to cash out considerable equity you may have built into your
current home in recent years and move on to your next dream home, there has
probably never been a better time.
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