Pre-Listing Home Inspections – Should I Have One Before Putting My Home On The Market? – YES!

featuredContent_templateShould I Pay to Have My Home Inspected Prior to Putting it on the Market?

YES! – This has always been a good idea but it never really seemed to catch on here in the Carolinas. But, with the recent changes in our North Carolina real estate contracts, a Pre-List Inspection is now more important than ever.

North Carolina is now what we call a Due Diligence contract state. The new contracts are more fair to both Seller and Buyer, and help spell out specific due diligence for both parties. Essentially, the Seller’s due diligence is on the front end, or when they list the property, with the Buyer’s due diligence on the back end, when they make an acceptable offer. Once the Buyer’s offer is accepted, the Buyer has the opportunity to perform their inspections of the property … mechanical/structural, wood-destroying insect, mold, radon, roof, chimney, perform a survey, etc. The buyer can order any inspection they want, at their expense, to satisfy their personal due diligence and to decide if they are going to move forward and close on the property.

The Seller needs to understand what the buyer will be doing in their due diligence period … they will be fully inspecting the property, top to bottom. With the new contract, the Buyer can ask for “anything” to be done i.e make repairs, paint a room, etc. Even though they can ask for “anything” we are not really seeing Buyers going overboard with this. In my experience, the Buyers, for the most part, are being reasonable. Even though the Buyer can ask for anything, the Seller can say no … but the Seller needs to know that the Buyer can walk away from the deal for any reason, provided that it’s during their due diligence period which is spelled out in the contract. This is why it’s important now, more than ever, for Sellers to do a pre-list inspection. The pre-list inspection will let you know what needs attention to get the property ready to market. The repairs can be made ahead of time, or if it’s something major, you will know then and can make adjustments for that major repair when you list … perhaps you make an adjustment in the listing price, or plan to offer a credit to the buyer, etc.

The fact that you have done a pre-list inspection and made the necessary repairs will help you market the property as well. Let’s face it, at a cost of approximately $400, not all Sellers are going to do a pre-list inspection. By doing one, you will have an advantage over the competition. It can also help you maximize your return in the sale of your property.

It is true that the Seller can make all the repairs that come up later … but it’s best to do them prior to listing. As a Seller, especially in a Buyer’s market, why do you want to create doubt in the Buyer’s mind in the middle of the transaction? You would rather have a Buyer that is excited about buying your home … that translates to a happy Seller as well, wouldn’t you say?

And if you have a fence, shed/out-building, or other exterior feature … sellers should consider having their own survey done as well. If there is an encroachment issue, knowing about it early will give you time to correct the issue.

Call me with your questions, I’m here to help!

 

July 2012 Charlotte Housing Market Report

Charlotte Median Sales Price – July 2012

July 2012 Charlotte Housing Market Report

Charlotte Regional Realtor® Association reports on the residential real estate market in this region based on Carolina Multiple Listing Services, Inc. (CMLS) data. The number of closings for July 2012 (2,653) increased 22.2 percent compared to July 2011, when closings totaled 2,171. Both the average and median sales price showed positive increases for a sixth consecutive month. The average sales price in July 2012 ($220,385) was up by 3.4 percent compared to the same period last year ($213,205), and the median sales price ($166,100), the best measure of trends over a period of time, showed prices up by 1.6 percent compared to July 2011 when the median sales price was $163,500.

The average list price in July 2012 ($237,904) decreased 1.4 percent when compared to the average list price for the same period last year ($241,380), bringing the percent of original list price received measure to 92.5 percent as compared to 89.7 percent last July. July 2012 pending contracts totaled 1,738, a decrease of 15.3 percent over last July’s pending contract figure (2,053) for the CMLS region.

New residential listings in July 2012 totaled 3,930, up 6.8 percent compared to the same period last year when new listings totaled 3,681. Overall inventory continued its downward trend, down 16.9 percent compared to July 2011, leaving the CMLS region with an 8.8 months’ supply of homes for sale as compared to 12.5 months’ supply during the same time last year. The average number of days a property was on the market from the time it was listed until it closed (list to close) totaled 144, which is a decrease of 13 days when compared to last July when the list to close count totaled 157 days.

The share of new listings that were distressed in July was 12.0 percent, compared to 15.8 percent the previous year. 13.8 percent of all closed sales in July were distressed, compared to 16.5 percent in July 2011.

The current active foreclosures on the market are at their lowest level since January 2008. The number of active short sales on the market are at their lowest since April 2009. The long-term trend is heading in the right direction.

U.S. Census – Charlotte’s Population Grew in 2011

U.S. Census – Charlotte’s Population Grew in 2011

According to the U.S. Census Bureau, Charlotte’s population grew 2.7 percent to approximately 751,000 between April 2010 and July 2011. Charlotte comes in as the 17th largest in the country in both population count and in rate of population growth.

Charlotte of course is also the largest city in North Carolina, but it lagged behind Cary and Raleigh in growth rate, both having a growth rate of 3.1 percent in 2011.

Should I Pay To Have My Home Inspected Prior To Putting It On The Market?

Should I Pay to Have My Home Inspected Prior to Putting it on the Market?

YES! – This has always been a good idea but it never really seemed to catch on here in the Carolinas. But, with the recent changes in our North Carolina real estate contracts, a Pre-List Inspection is now more important than ever.

North Carolina is now what we call a Due Diligence contract state. The new contracts are more fair to both seller and buyer, and help spell out specific due diligence for both parties. Essentially, the seller’s due diligence is on the front end, or when they list the property, with the buyer’s due diligence on the back end, when they make an acceptable offer. Once the buyer’s offer is accepted, the buyer has the opportunity to perform their inspections of the property … mechanical/structural, wood-destroying insect, mold, radon, perform a survey, etc. The buyer can order any inspection they want to, at their expense, satisfy their personal due diligence and to decide if they are going to move forward and close on the property.

The seller needs to understand what the buyer will be doing in their due diligence period … they will be fully inspecting the property, top to bottom. With the new contract, the buyer can ask for “anything” to be done i.e. make repairs, paint a room, etc. Even though they can ask for “anything” we are not really seeing buyers going overboard with this. In my experience, the buyers are, for the most part, are being reasonable. Even though the buyer can ask for anything, the seller can say no … but know that the buyer can walk away from the deal for any reason. This is why it’s important now, more than ever, to do a pre-list inspection. The pre-list inspection will let you know what needs attention to get the property ready to market. The repairs can be made ahead of time, or if it’s something major, you will know and can make adjustments for that major repair when you list.

The fact that you have done a pre-list inspection and made the necessary repairs will help you market the property as well. Let’s face it, at a cost of approximately $400, not all sellers are going to do a pre-list inspection. By doing one, you will have an advantage over the competition. It can also help you maximize your return in the sale of your property.

It is true that the seller can make all the repairs that come up later … but it’s best to do them prior to listing. As a seller, especially in a buyer’s market, why do you want to create doubt in the buyer’s mind in the middle of the transaction? You would rather have a buyer that is excited about buying your home … that translates to a happy seller as well, wouldn’t you say?

And if you have a fence, shed/out-building, or other exterior feature … sellers should consider having their own survey done as well. If there is an encroachment issue, knowing about it early will give you time to correct the issue.

Call me with your questions, I’m here to help!

June 2012 Charlotte Housing Market Report

Charlotte Regional Realtor® Association reports on the residential real estate market in this region based on Carolina Multiple Listing Services, Inc. (CMLS) data. The number of closings for June 2012 (2,657) increased 14.0 percent compared to June 2011, when closings totaled 2,330. Both the average and median sales price showed positive increases for a fifth consecutive month. The average sales price in June 2012 ($227,924) was up by 5.3 percent compared to the same period last year ($216,389), and the median sales price ($171,500), the best measure of trends over a period of time, showed prices up by 9.4 percent compared to June 2011 when the median sales price was $156,775.

The average list price in June 2012 ($244,881) decreased 1.7 percent when compared to the average list price for the same period last year ($249,088), bringing the percent of original list price received measure to 92.7 percent as compared to 89.7 percent last June. June 2012 pending contracts totaled 2,506, an increase of 8.9 percent over last June’s pending contract figure (2,301) for the CMLS region.

New residential listings in June 2012 totaled 4,109, down 0.8 percent compared to the same period last year when new listings totaled 4,143. Overall inventory continued its downward trend, down 17.4 percent compared to June 2011, leaving the CMLS region with a 9.3 months’ supply of homes for sale as compared to 13.1 months’ supply during the same time last year. The average number of days a property was on the market from the time it was listed until it closed (list to close) totaled 139, which is a decrease of 13 days when compared to last June when the list to close count totaled 152 days.

The share of new listings that were distressed in June was 11.4 percent, compared to 14.7 percent the previous year. 14.2 percent of all closed sales in June were distressed, compared to 30.6 percent in June 2011.

Charlotte Housing – Our Homes Are Some of the Newest in the Nation

Charlotte, North CarolinaCharlotte Housing – Our Homes Are Some of the Newest in the Nation

According to recent U.S. Census Bureau data, Charlotte’s housing is some of the newest in the nation. A recent Biz Journal’s On Numbers analysis of the U.S. Census Bureau data shows that nearly 12% of the 741,000 housing units counted in the Charlotte metro area in 2010 were built after 2004. In the list of the 100 largest U.S. metro areas, in regards to percentage of new homes, this places Charlotte in 10th place.

Only 17 markets nationwide are growing so rapidly that more than 10% of their housing was built in 2005 or later.

Another interesting fact … almost 24% of homes in the Charlotte area were built prior to 1970.

May 2012 Charlotte Housing Market Report

Charlotte Regional Realtor® Association reports on the residential real estate market in this region based on Carolina Multiple Listing Services, Inc. (CMLS) data. The number of closings for May 2012 (2,607) increased 19.0 percent compared to May 2011, when closings totaled 2,191.  Both the average and median sales price showed positive increases for a fourth consecutive month. The average sales price in May 2012 ($217,561) was up by 4.0percent compared to the same period last year ($209,288), and the median salesprice ($165,000), the best measure of trends over a period of time, showed prices up by 8.6 percent compared to May 2011 when the median sales price was $152,000.

The average list price in May 2012 ($246,495) decreased 0.5 percent when compared to the average list price for the same period last year ($247,660), bringing the percent of original list price received measure to 92.2 percent as compared to 89.6 percent last May.  May 2012 pending contracts totaled 2,740, an increase of 26.3 percent over last May’s pending contract figure (2,169) for the CMLS region.

New residential listings in May 2012 totaled 4,434, up 5.4 percent compared to the same period last year when new listings totaled 4,205. Overall inventory continued its downward trend, down 18.7 percent compared to May 2011, leaving the CMLS region with a 9.4 months’ supply of homes for sale as compared to 13.5 months’ supply during the same time last year.  The average number of days a property was on the market from the time it was listed until it closed (list to close) totaled 140, which is a decrease of ten days when compared to last May when the list to close count totaled 150 days.

The share of new listings that were distressed in May was 13.6percent, compared to 16.0 percent the previous year. 14.3 percent of all closedsales in May were distressed, compared to 32.0 percent in May 2011.

April 2012 Charlotte Housing Market Report

Charlotte Regional Realtor® Association reports on the residential real estate market in this region based on Carolina Multiple Listing Services, Inc. (CMLS) data. The number of closings for April 2012 (2,170) increased 15.3 percent compared to April 2011, when closings totaled 1,882. Both the average and median sales price showed positive increases for a third consecutive month. The average sales price in April 2012 ($214,779) was up by 5.6 percent compared to the same period last year ($203,442), and the median sales price ($159,995), the best measure of trends over a period of time, showed prices up by 4.6 percent compared to April 2011 when the median sales price was $153,000.

The average list price in April 2012 ($272,358) increased 9.2 percent when compared to the average list price for the same period last year ($249,500), bringing the percent of original list price received measure to 92 percent as compared to 88.9 percent last April. April 2012 pending contracts totaled 2,317, an increase of 7.8 percent over last April’s pending contracts (2,150) for the CMLS region.

New residential listings in April 2012 totaled 4,526, up slightly 1.5 percent compared to the same period last year when new listings totaled 4,460. Overall inventory continued its downward trend, down 18.7 percent compared to April 2011, leaving the CMLS region with a 9.7-month supply of homes for sale as compared to 13.7-month supply during the same time last year. The average number of days a property was on the market from the time it was listed until it closed (list to close) totaled 145, which is a decrease of nine days when compared to last April when the list to close count totaled 154 days.

The share of new listings that were distressed in April was 11.3 percent, compared to 18.7 percent the previous year. 15.6 percent of all closed sales in April were distressed, compared to 31.5 percent in April 2011.