Charlotte NC, Concord, Kannapolis Real Estate

I don't know if things are different in other parts of the country, my particular specialty is real estate in and around Charlotte NC.  But around here, part of the due diligence on purchasing a home is in obtaining a new survey.  We're old school here in North Carolina.  Our surveyors operate on the old method of metes and bounds.  And you need a new survey to know where your corners lie (you may want a fence at some point, a storage shed, a pool, etc).  Also, you need that survey if you want full title insurance coverage against future problems with encroachments and errors and such.

So we get after our buyers to get surveys-please don't regret trying to save $300 if you run into a problem down the road on this, one of your largest financial investments!

Anyhoo.  Got a call from one of our most trusted surveyors yesterday.  He was out looking at a parcel in an established neighborhood in downtown Concord NC, a lovely community called Beverly Hills that has been there for ages and always does quite well.  I'm representing the buyers in this transaction.  We have been anxiously awaiting the survey, since the sellers had lived here for over 20 years and they didn't have an old survey for us to consider (we only had the ballpark information available in the Cabarrus County GIS).  As the surveyor went back into the wooded back section of the lot (this is a heavily wooded parcel), he came across a surprise-a private enterprise, as it were.

Marijuana, mary jane, ganja, weed.  Happily growing in portable containers at the backside of the property.

Our surveyor immediately called the local police to let them know about this undocumented business venture.  Interestingly enough, the police department had already received a call that there was someone trespassing on this property!  Must have been the pot purveyors, worried about the safety of their product.  The surveyor wasn't trespassing, he was doing his job, and also doing his civic duty turning in the illegal plants.

Craziness.  Yet one more reason to order a survey...you might discover an alternative income source on the property!

(for more information on buying, selling, or investing in Charlotte NC or Concord NC area real estate, email or call Leigh Brown today, I'm always glad to help)

Why have real estate values held up in Charlotte NC?  This is a question that I am asked several times each day. Locals are curious, investors are deciding where to spend money, relocating folks want to know why in the world this real estate market isn't tanking like the one they're leaving.

First of all, you have to understand that Charlotte NC was never one of the 'bubble' markets.  We didn't have 20%, 30%, 40% gains year over year.  It just didn't happen here.  Why?  In a nutshell, new construction and available land.  Think about it-if you as a homebuyer are faced with two options which are very similar except that one is brand new and one is 5 years old, which will you buy?  The new one, if the prices are anywhere in the same ballpark.  In the Charlotte region, we have had an abundance of buildable, available land, inside of a 30-45 minute radius of uptown/downtown/center city Charlotte.  That's a reasonable commute time for just about everyone, so new construction has made sense.

We did see a pickup in the resale market after Hurricane Katrina, when the costs of raw goods skyrocketed due to increased demand.   The builders were just responding to cost increases for sheetrock, drywall, lumber, concrete, paint, etc.  And then resale became the much better value.  But a pickup in this area means 5-7% gains as opposed to 3% gains.   Still not in the region of 30% gains that were seen in California, Arizona, Florida.

So when the markets began to normalize-and that's the situation, not a tanking, a normalization- Charlotte NC stayed stable.  When you don't spike up, you don't spike downward either.  Thank heavens.

There are other reasons Charlotte's real estate market is stable.  We have a net population gain year over year.  We have low unemployment coupled with positive job creation.  We have a highly educated workforce and affordable, available ongoing educational programs in the area.   We have a low cost of living.  We have affordable housing for the most part.  We have strong public schools.  We have a temperate climate.  We have a favorable tax and political structure for businesses.

Add these things together and you can begin to see why I describe this market as a blue chip investment.  And blue chips are a part of any investor's portfolio.  Perhaps not the whole thing, but everyone needs something stable that is on a continuous increase.

Still don't quite understand?  Come visit us.  Once you see the area, experience the friendliness of the residents, enjoy the sunshine and the available activities, you might just understand why Charlotte is a smart place to buy right now or whenever the time is right for you.  Need more info or have more questions?  Email me, I'll be glad to help however I can with your buying, selling, or investing needs.

And if I read that remark in the Charlotte NC MLS or in someone's marketing one more time, I may just lose it.

We, as real estate professionals, wonder why in the world we are not taken seriously.  May I suggest that we have done this to ourselves?  If a house truly has instant equity, you could turn around and sell it again the next day-heck the same afternoon!-for more money. 

But that scenario really doesn't exist in the marketplace right now.  (with a few exceptions, but they're very few)  Of course, I'm only speaking of the real estate market here in the Charlotte NC area-your area may be different.

A house can, and will, sell if properly priced and properly conditioned.  I think we all know that. But our buyers are savvy.  They're shopping the available inventory to make an educated decision about what to do in the purchase.  At least, I'd like to think that buyers are savvy.  Bless their hearts, some aren't and they rely on the really bad advice of some builder reps and some agents in the marketplace.

I'm getting off topic, too many soapboxes to hop on.  Anyway, I'm just tired of folks who are advertising "$30,000 in instant equity!" when it's really just a price reduction.  Builder reps seem to be the worst, in their pretty little heads they are really convinced that they are offering the deal of the century on new construction in Charlotte NC.  And it confuses buyers.  Even the savvy ones get those big numbers stuck in their heads, and they start spending it...or they forget that it's okay to negotiate with the builder further.

I'll say it again:  It's NOT 'instant equity'.  It's a PRICE REDUCTION. 

If that original price had been correct (see above), the house would have sold.  It didn't sell, you offered the lower price, which makes it a price reduction.  Call a spade a spade, and quit confusing people and creating these impressions of false hope.  If they're getting a fair deal on a house, that's a good market.  We all want increased equity over time.  But it ain't INSTANT.

Seriously, anyone know?  Arcadian Resorts was the 'next big thing' here in Concord NC.  Billed as a mega resort/residence, the very smooth investors behind the operation talked of great returns on investment, great opportunities, great everything...

But I for one had doubts from the start, and even kept a buyer from buying.  (Yes, those of you who hate Realtors in general may be shocked and amazed that a commission-based professional would have kept a buyer from buying, but guess what-it's my conscience and career at stake, not to mention the cash that belongs to my client.)  Why did I question the project?

1. They were requiring full purchase price deposits.  You heard me-no earnest money here, they wanted the full price up front.  With no interest paid (heck, your equity appreciation would more than offset any piddling interest you'd get anywhere else, right?). 

2. They stated that the project would commence construction as soon as it was 100% sold.  Ahem.  Seriously?  You want my folks to pony up six figures in cash for a building that MIGHT be completed in 2012?  (Please, step away from the crack pipe.)  If you're not familiar with how financing on condo construction projects works, for comparion most developers will get the building going when it's been 50-60% pre-sold.  So to wait for the project to be sold out is a bit ambitious.

3. There were no solid answers about what would happen in the event of a resort that didn't get built.

4. The land that they were planning to build this luxury condo resort in Concord NC on?  Never closed.  It was under a contingent contract, and they weren't willing to close on the land until the building was majority sold out...reeks of snake oil salesmen to me, selling what you do not own.

So the signs have vanished.  The listing agent for the land hasn't yet returned calls (I'm sure she's swamped with more than this drama but oh well).  The phone number at the sales center is disconnected.  The emails are going unreturned.

Now I just want to know what will happen to the poor shmucks who bought the story and laid the cash on the barrelhead...

(by the way, if you want to buy a condo, townhome, house, whatever in Concord NC or the surrounding areas, please call Leigh Brown first.  It just might save you some heartache and cash.  No guarantees but dang, I can keep you safe from the obvious ones!)

Yes, it's that time of year again!  For many people, Memorial Day conjurs up images of sandy beaches or backyard cookouts...for others, it's their first househunting weekend of the summer season.  Exploratory trips are critical in the relocation process, especially when you're moving to a larger metropolitan area like Charlotte NC, which has a ton of micromarkets to examine and consider.

For others, though, Memorial Day weekend means one thing and one thing only:  NASCAR is back in town for the Coca-Cola 600!  Yes, the traffic is terrible but the excitement is palpable as the RV folks start hitting town and setting up their temporary residences here in Concord NC.  Locals love it, vacationers love it, and it's a really special part of the year in these parts.  Let's put this into perspective....on Sunday May 25 when the race starts (or shortly thereafter), the Lowe's Motor Speedway complex becomes the third-largest city in North Carolina.  We're talking a bunch of people!

So what in the world does any of this have to do with real estate, or with families who are considering a relocation to the Charlotte NC area?

It means that if you do not yet have hotel reservations in place, you had better start calling and begging right about now.  Local Realtors can do some amazing things, but none of us have the magical power to pull hotel rooms out of a hat during race weeks.  I've made it a practice to warn folks about hotels for several years, and inevitably someone decides to come visit at the last minute...if that's you, please have a cousin or friend or daughter with whom you can stay!

Of course, we're still delighted to help with your home search in and around Charlotte and Concord NC-just work with us and we'll try to keep you sane in the NASCAR excitement!