Recent reports of increasing foreclosures in the Charlotte NC area, of course, put me immediately in research mode! I have to consider the affect that foreclosures will have upon my sellers and, as we are all aware, buyers who don't mind rehabilitating property need to be aware of the foreclosure status in Charlotte NC as well. Spending time and money up front to resurrect a property that has been poorly maintained and perhaps stripped of as much as possible by the former homeowner, is a prerequesite to owning a foreclosure. Unlike short sales, the foreclosed properties are in far worse condition and that does not even take into consideration the hidden defects that those homeowners obviously have neglected during their ownership. I still was not convinced that we had as many foreclosures as was being reported and I was correct (see chart below).
Consider this: if what is visible to the eye is defective, chances are the property has been in serious need of general, mechanical and structural maintenance during recent years. There ARE hidden defects that can be quite costly to repair--especially if you know, upon first inspection, that the home has been poorly maintained. Showing several foreclosed properties this week to a client, who has now decided that he no longer even wants a foreclosure, opened our eyes to the 'foreclosure real world!' My client had been avoiding short sales at all costs and is truly not in a hurry to purchase but, just thought he'd 'get lucky' and find a wonderful deal on a foreclosure. After looking at several over the past couple of months with him, then sharing a short sale with him in a neighborhood near one of the foreclosures, he has finally seen the light!
A good number of the Charlotte NC foreclosures that are on the market have been poorly maintained while the short sales generally have the owners in place, maintaining it in order to see the home through the sale and then leave the property, (relieved that they are not going to suffer the same consequences that an owner who has been foreclosed upon suffers), in good condition. My client's latest relevation summed it up pretty well and I thought I'd share it here--"If it took me 6 months to close on a short sale, it is worth the wait; I would rather be working those six months to save more for a down payment and have little, if any, costly repairs to be made than quickly purchase a foreclosure and have to WORK six months to pay for all of the hidden damages that I was unaware of!" He is now a converted, committed short sale shopper!
You know the best part of showing houses to him this week? The short sales that I showed were all HEATED! I didn't have to wear my ear muffs INSIDE while showing houses!!
Note: The chart below includes three of Charlotte NC 's most popular neighborhoods - Chantilly - Myers Park - Dilworth
(THE best Charlotte home search available - no kidding!)
Debe Maxwell, CRS/Realtor®/Broker
Broker@TheCharlotteScoop.com
Phone (704) 491-3310
