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I was just talking with clients that are first-time homebuyers about the reality of being a buyer right now in the Charlotte area. It's brutal. Let me explain...
Yes, interest rates are low. Yes, it's true you do not need to put 20% down. Because of both of those things, there are so many more buyers out there. People who didn't think they could afford to be homeowners now can. Isn't that incredible?
The problem is that there is nothing to sell to them (we have no inventory, like many other places across the country). When properties come on the market, the showing appointments are all booked up within an hour (I'm not exaggerating).
It's not uncommon to see a property go active on a Thursday or Friday, and for all of the showing appointments to be completely booked up through the weekend, meaning you can't even get your clients in the home to see it. This is happening in many different price points.
"So, we'll just offer above asking!" Well, you and everyone else will be doing that. And now you run into appraisal issues (which we're seeing every day). Because you had to offer so much over list price, the home didn't appraise. That gives you three options as a buyer:
1. You hope that you have a reasonable seller you're working with and can renegotiate the purchase price. 2. If the seller won't budge (they don't have to), the difference between the appraisal amount and your contract price is extra cash you must bring to the closing table.
3. If you do not have the cash to make up the difference between the appraisal amount and the contract price (which could be tens of thousands of dollars), you terminate the deal and lose the house.
Did I mention that if you terminate your contract, you also lose your due diligence money? Yep, there's that too. Due diligence money is cash that goes directly to a seller's pocket the day you go under contract. You lose that if you terminate.
The problem with losing your due diligence money is often times in order to get the house, buyers are forking over a hefty amount of money to make their offer stand out. When you terminate the deal, that money is gone. That could be a few thousand dollars. It could be more.
I say all of this because it's a brutal time to be a buyer right now, but not an impossible one. Working with a good agent is key to getting these deals done, and I'm not exaggerating. Good agents get it done, plain and simple.
In this morning's @charlotteagenda, "Charlotte's low housing inventory is among the worst in the country."
Even if you're not a buyer or a seller right now, it's really something to pay attention to. https://www.charlotteagenda.com/247147/charlottes-low-housing-inventory-is-among-the-worst-in-the-country/
Even if you're not a buyer or a seller right now, it's really something to pay attention to. https://www.charlotteagenda.com/247147/charlottes-low-housing-inventory-is-among-the-worst-in-the-country/
