Charlotte Rentals and Lease Options: Be Careful!

I have had a recent reminder of a hopeful Charlotte Home buyer that was swindled by an investor. I write this as a caution based on personal training and now after meeting a recent victim.

Several years ago I was purchasing foreclosures from auctions. I personally witnessed many scams. I also took many courses; I was disgusted by what was taught. The statistics show that the vast majority of "Lease Options" never were executed. This was taught as a huge win for the land lord. You receive a large deposit (to be applied towards the down payment "if" the buyer can get financing). You, the landlord, charge higher than market value rent and the additional money from the monthly payment "is applied towards the down payment when the home is purchased (rarely actually occurs). When the buyer does not get financing, the landlord also keeps all of this "extra" money! You, the landlord also are not responsible for the majority of the maintenance since since the "Lease Optioner" is responsible for "their" supposed home!

There is even another twist. The hopeful buyers trusts the initial home value from the investor. The buyers complied with all of their duties. At the end of the year the young couple tried to get financing. The home would not appraise for the sale price the investor required! They could not get financing since the home was not worth what the investor "told" them it was worth (our market has not changed over the past year). The buyers lost their deposit, their additional funds every month and the maintenance was for free. Who wins? The investor wins by taking advantage of the buyer.

This is dirty and I did not rent because I could not take advantage of people this way. This does not mean every investor is this dirty but please be very careful. There are many unscrupulous people in this world and always willing to prey on the innocent.

Visit my Charlotte Real Estate website for information on Charlotte Homes for Sale or call me directly for assistance in buying your Charlotte Home.

Ballantyne Land for Sale

There is a great new listing in Ballantyne for over 4 acres of land on Bryant Farms Rd. This is a great piece of Ballantyne Real Estate property within walking distance to Stonecrest Shopping and Restaurants. The land currently has a single family home but is zoned for subdividing! Yes, you can still create a small subdivision in South Charlotte and Ballantyne!

Visit Charlotte Real Estate and check out this featured listing for more information or call today at 704-770-6559!

How to consider an Offer for your home

Many buyers are struggling with the value of their home. Everyone wants to pick a peak market time to select their "sale price" but pick the bottom of the market to buy. First rule: a home is an investment.



If you purchased stocks of IBM 20 years ago at $xxx and today those shares are selling for 10 times as much then what price would you sell them? You sell them for today's market value. On the other hand, if you purchased airline stock in the late 1990's and sold it today, what price would you expect to receive? We accept that when the value of stocks decline then we lost money. It is that simple.



The problem arises because of sentimental value. We, in our minds, value ourselves with the value of our homes. "I have $225,000 in equity." Reality this is like having $225,000 in the stock market. It is only on paper. It is not real until you actually have the green in your hand.



Your home is worth what a ready, willing and able buyer is willing to spend. No more, no less. Yes, in 50 years the value will change. It will also likely change in 2 years but it is the owner/investor that assumes that risk. You are right, the value may increase (as it had for you). On the other hand, the value may decrease (as it also has for you).



Do not expect the buyer to pay you in advance for the potential gain. Are you willing to pay more for Coca Cola stock than the current market value because the seller believes you will make a lot of money?



Consider every offer with deliberate consideration. Weigh it out. You are not selling your home full of memories, sweat and love. The buyer is purchasing an investment without the sentiment. The sentiment and warmth is a treasure that your home provided. You take that warmth with you for the rest of your life.

Charlotte Foreclosures are hot commodity

Charlotte Foreclosures remain a hot commodity. As foreclosures in Charlotte come on the market there is a surging demand. A decent deal does not last long.

I am noticing a trend of Short Sales. Charlotte Short Sales are increasing for several simple reasons. Sellers are learning that before their home goes into foreclosure, the banks will consider a short sale with a ready, willing and able buyer.

The down side of a short sale is that the Charlotte home will not "close" for several more months. The banks/lenders are attempting to streamline their process but you must be very patient when purchasing a Charlotte Home via a short sale. It may take 5 months until the lender actually approves the Charlotte home for sale. Banks/lenders must go through an elaborate process to confirm true market value, assess the value of a foreclosure (less than a short sale based on the condition of the average home after the foreclosure), assure that the deal is an arms length transaction and "assume" the amount of the loss.

The decision to assume a loss for the lender is not necessarily easy and without risk. Consider every corporation to reflect "Survivor". There are always people watching and scrutinizing each decision. When you get too many people involved in a decision process, efficiency is lost exponentially.

Charlotte Foreclosures and Charlotte Short sales present opportunities for you if you are ready to buy today. Call me as your Charlotte Realtor at 704-770-6559 for a customized Charlotte Foreclosure home search. Caution: I share all or the greater Charlotte NC Foreclosures. Charlotte homes are not discounted like the hyper inflated markets but you can get discounts. Do not expect to see discounts like you will find in Florida, New Jersey, much of California, Vegas and Phoenix. These markets went up tremendously over the past 5 years. The discount you are really receiving is merely the market adjustments of a super inflated price. Charlotte Real Estate did not experience this type of surge. I share this so that you understand that these are the selling prices. I will also share recent sales so that you will know realistically what offers banks are accepting.

Chalotte Real Estate Quality of Life

It is fall surrounding Charlotte NC Real Estate and we are experiencing our leaves changing. The weather in Charlotte North Carolina creates and ideal setting for your new home. Consider your current home and contrast that to Charlotte.

Today it will be sunny and highs in the 70's. That is our idea of fall. Yes, our grass is still growing as our leaves are changing colors. Peak colors were in the Asheville area this past weekend since it is in a higher elevation. This is the life style for Charlotte Real Estate.

Learn more about Charlotte NC Homes for Sale and visit Charlotte North Carolina for the fall; you will be packing your belongings as soon as you return home.

Charlotte Short Sales - Charlotte Foreclosures

There has been a new stumbling block recently encountered for the purchase of Charlotte Foreclosures and Charlotte Short Sales. As with any obstacle, they are often the byproduct of recent/past troubles. Many lenders are now requiring a preapproval from a direct lender and not a Mortgage Broker. I understand this to a degree but I recently lost a Charlotte Foreclosure Property because my buyer could not get a lender letter soon enough.

My new rule is to require each buyer to speak to a national lender to obtain the pre-approval beforehand. I like my Mortgage brokers and they rarely let me down. The problem is that the Bank does not know the credibility with each Mortgage Broker and they want to assure the Charlotte NC Foreclosure makes it to cosing and the buyer can actually get the loan. I have no doubt there are those out there with dubious ethics and "stating" that the person is approved but in reality did not really check thoroughly.

Charlotte Foreclosures and Charlotte Short Sales are in big demand and you better be ready when seeking a discounted property. The discount is based on a smooth transaction and a prepared buyer. Give me a call and I will help you gt ready and then find ideal Charlotte NC Homes for Sale.

Charlotte Real Estate - Mortgage Rates

Most people know that the first time home buyers credit of $8,000 is about to expire November 30th but do you realize that the mortgage rates are also likely to be heading upward soon? No I am not a mortgage broker but I also need to understand the mortgage side of the business.

The Federal Government has pumped over 3/4 of a trillion dollars into the real estate securities and Treasuries to superficially keep interest rates low. The federal program guaranteed funding for over a trillion dollars but is also due to expire by years end. This will result in increased interest rates and home owners having that much more trouble financing. The time to buy is now while the mortgage interest rates remain low.

Visit Charlotte Real Estate - Charlotte NC Homes for Sale today and Begin your home search. The market is still down along with the interest rates. Timing like this does come around too often in a life time. He who succeeds trusted his instincts and reacted in time.