Charlotte Real Estate continues to flourish as many people are taking advantage of the low interest rates and the Federal Tax credit that is in effect for first time home owners. There are many great deals out there that Charlotte NC Real Estate has not experienced before. Where are the deals and what is really a deal?
That is the question each home buyer should ask. Is a deal 50% off on a property that sold 2 years ago? Did you think of asking why did this home lose so much value over such a short time period? Is this area going to increase in value or is it still declining?
Now let's get back to Charlotte. There are very few places in Charlotte that you can get a home this cheap. You may hear stories but they are simply stories. First you would ask yourself if the value was really $100,000 why would the seller "give me" $50,000? Does he/she really like me that much? Hmmm?
There is always a reason. If a home has lost that much value there is a reason. Was the neighborhood that overinflated to begin with? If a home is selling for less than it would cost to build the home then that should generate a huge flag.
Charlotte Real Estate market value is the result of several factors. The best indicator and a large factor are the purchasing demands of the locals. By using the term "locals" I mean a person who has resided in Charlotte for a few years. A local has typically experienced a good deal of the greater Charlotte area and knows what areas they prefer. Their personal desire (supply and demand) establishes the price. An area that has only a local market can be assured of "true" market value.
Now let's add a wrench into the formula. First are Charlotte Home Buyers that are relocating. A Charlotte Relocation buyer is an a difficult predicament. When you first move you would like your family to be stable and happy. You do not want your children to have a bad experience with schools or friends. Nor do you want your child developing friendships only to relocate to another home the following year.
These families have the best intentions for their new Charlotte Homes but have trouble discerning each area. There are many confusing resources and people speaking half truths. I help filter through the information so that you can compare areas based on your own personal situation. Children are too valuable to risk!
Everyone wants their child to "fit in" with their new Charlotte school and Charlotte Neighborhood. Consider the local grocery store for a snap shot of your new home. Is this your comfort zone? How about the schools? What website do you believe? Are you really comparing "apples to apples"? School awards, test scores, SAT scores and school websites are confusing and makes it difficult to determine which way is up.
I help balance these concerns. I am very familiar with the public websites and can assist with simplifying the task in front of you. Visit my Charlotte Real Estate website and gain insight into our schools, our suburbs and great Charlotte NC Homes for Sale.
Monday, June 15, 2009
Thursday, June 04, 2009
Charlotte Home Equity - Home Equity Loans
Many buyers are programmed with a misconception of home equity. Home equity is the difference in market value to how much you owe on your home. Home Equity was something you realized when you sold your home in the future. It was not "liquid" meaning the only time you could access the "equity" was when you actually "cashed in" and sold your home.
This changed with the creation of Home Equity Lines of Credit. The government realized a lot of US wealth was "tied up" in real estate (securely and responsibly invested). In order for a more robust economy, home equity loans were created. This allowed the "best" of both worlds; people now did not need to sell their homes to realize the "savings" they had in their homes.
Initially this was utilized to improve and update your home/investment. It quickly deteriorated into people using their HELOC (Home Equity Line of Credit) as a credit card and their savings dwindled. Now you have your big screen TVs but you also have another bill.
Many people were looking for desperate sellers and banks were lending money on a home that you just purchased for more than the home was worth under the pretense that you were going to reinvest the money to increase the value. This did not and does not work. Most people do not realize that changing light fixtures, plumbing fixtures, a new deck and an expanded bedroom does not increase the value of you home in proportion to what you spend. You invest $20,000 and you home's market value increased $10,000. Now you owe more than you home is worth!
It does not take long for banks to get stuck holding the bag. That is ultimately where the "Buck stopped here". Here we are today.
Today the market is back to where it was a couple of decades ago. The bank crisis is the result of unforeseen consequences (poorly made decisions without adequate understanding of people). The market value of the home is the price you paid. That is the market value. Is it cheaper than someone paid last year? Probably? Is it a good deal? Yes. Do you have a home with a smaller payment than the other person? Yes. Can you get additional cash to spend? NO!
Home equity lines of credit are now primarily only if you have 20% equity in your home. That means if a bank/lender performs a market analysis on recent sales, your debt on the home is less than 80% of the value. The lender will then lend you up to the 80% mark. The other 20% will be realized after you sell your home. Keep in mind that a portion of that "equity" will be paid towards the cost of selling your home so you will not receive the whole 20% so do not spend that money until it is in your hand.
The rules keep changing and we are in a period of dramatic changes. When purchasing a Charlotte home look to purchase a home is a stable neighborhood (without a lot of Charlotte Foreclosures) to assure the value of your home will appreciate in years to come. Charlotte Real Estate is a long term investment. It's your home.
Visit Charlotte Real Estate to learn more about the greater Charlotte Real Estate market and come visit. You will love it in Charlotte NC!
This changed with the creation of Home Equity Lines of Credit. The government realized a lot of US wealth was "tied up" in real estate (securely and responsibly invested). In order for a more robust economy, home equity loans were created. This allowed the "best" of both worlds; people now did not need to sell their homes to realize the "savings" they had in their homes.
Initially this was utilized to improve and update your home/investment. It quickly deteriorated into people using their HELOC (Home Equity Line of Credit) as a credit card and their savings dwindled. Now you have your big screen TVs but you also have another bill.
Many people were looking for desperate sellers and banks were lending money on a home that you just purchased for more than the home was worth under the pretense that you were going to reinvest the money to increase the value. This did not and does not work. Most people do not realize that changing light fixtures, plumbing fixtures, a new deck and an expanded bedroom does not increase the value of you home in proportion to what you spend. You invest $20,000 and you home's market value increased $10,000. Now you owe more than you home is worth!
It does not take long for banks to get stuck holding the bag. That is ultimately where the "Buck stopped here". Here we are today.
Today the market is back to where it was a couple of decades ago. The bank crisis is the result of unforeseen consequences (poorly made decisions without adequate understanding of people). The market value of the home is the price you paid. That is the market value. Is it cheaper than someone paid last year? Probably? Is it a good deal? Yes. Do you have a home with a smaller payment than the other person? Yes. Can you get additional cash to spend? NO!
Home equity lines of credit are now primarily only if you have 20% equity in your home. That means if a bank/lender performs a market analysis on recent sales, your debt on the home is less than 80% of the value. The lender will then lend you up to the 80% mark. The other 20% will be realized after you sell your home. Keep in mind that a portion of that "equity" will be paid towards the cost of selling your home so you will not receive the whole 20% so do not spend that money until it is in your hand.
The rules keep changing and we are in a period of dramatic changes. When purchasing a Charlotte home look to purchase a home is a stable neighborhood (without a lot of Charlotte Foreclosures) to assure the value of your home will appreciate in years to come. Charlotte Real Estate is a long term investment. It's your home.
Visit Charlotte Real Estate to learn more about the greater Charlotte Real Estate market and come visit. You will love it in Charlotte NC!
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