Don Anthony Gomez ~ Charlotte Realtor® & Real Estate Broker ~ Entire Region MLS

Charlotte Real Estate - Home Sale Summary for October 2009

What an interesting month we just had! Our brokerage put a lot of homes under contract in October, many more so than I would expect this time of year, so I was very curious to see how the overall statistics would pan out. When the Charlotte Region MLS statistics were published, I was happy to see that it was a good month for the overall market.

As you see in the below graph, in October we finally crossed the boundary for last year's run-up of inventory! It took some time, but after months of fewer homes coming on the market and consumers beginning to gain more confidence in purchasing a home, inventory is starting to get back to more reasonable levels.

Historically there have been fewer homes sold and fewer homes being put on the market in October, November, and December. Last year it slowed down so much that inventory really skyrocketed. Last month we saw a unique change where inventory levels went down in all price ranges...

For a more detailed view of the market, including trends for new listings, sold homes, and monthly inventory trends, click to watch the video below...

Looks like October moved us in the right direction. Let's hope that we continue with that trend!

Senate Unanimously Passes Tax Credit For Many To Buy A Home

It's not just First Time Homebuyers this time. Even those who have owned a home for awhile are in the mix now. With overwhelming support and a vote of 98-0, the Senate passed a bill that would not only extend the existing First Time Homebuyers Tax Credit beyond the existing deadline of November 30th, but it would also allow "move-up" buyers to participate in a new tax credit.

The existing tax credit is set to expire on November 30th. That tax credit extends to people who qualify as "First Time Homebuyers" only. Those buyers are eligible for up to $8,000 in tax credits, but the home sale had to be completed by that date. With many buyers out there still trying to squeeze in a purchase prior to the deadline, the Senate has acted to extend the deadline until next year.

The interesting thing about this bill is that it also extends a new tax credit of up to $6,500 to existing home owners who purchase a home over the next few months. To qualify for the credit, one will have had to own a home as a principal residence for five consecutive years of the last eight years.

There are some limitations to both credits though. If you are single, the income limitation is $125,000 and if you are married, your joint income is limited to $225,000. In addition, the home being purchased can be no more than $800,000. For either credit, the new home needs to be under contract by April 30, 2010 and close by June 30, 2010.

Though nothing is finalized until it is passed by the House and signed by the President, it appears this will go through. If you are were planning to buy a home or put your home for sale in the Charlotte Region, now may be the time for you to take advantage of this limited time opportunity.

"My Dad Doesn't Want Me To Do What He Does When I Grow Up"

I felt a tinge of sadness when the boy told me that today. I was on a field trip with my 2nd grade son. We were on a school bus on the way home, driving by some office buildings. The boy was sitting with my son and I, all squeezed into a small bus seat when the boy told me that his father worked in the building we were passing.

I said, "Oh really. What does your dad do?"

"He sells carpet." the boy replied. "My dad doesn't want me to do what he does when I grow up."

It took me back a little and made me think... would I want my son to avoid doing what I do when he grows up?

The truth is, I've thought quite a bit over my working life about what I am doing for a career. Serious thoughts about how one is spending one's time, in my opinion, is a very important part of making sure you don't look back on your life with regret. It's too easy to go through life without asking the tough questions and making the necessary changes to ensure you are working towards accomplishing the objective you truly desire. Sometimes this may mean taking a pay cut, putting your ego to the side for a time, and/or making serious lifestyle sacrifices.

One of my favorite sayings is... "Before you get to the top of the mountain, make sure you're climbing the right mountain." (Sorry, but I don't know who said this.) This saying has helped guide me in my career, as my career progression has hardly been straight up. Over time, I have made several moves that reflect that re-evaluation of my life goals and priorities.

My last move prior to starting my real estate career was leaving an executive position with a major tire manufacturer whose headquarters are overseas. My job required lots of travel, both around the country and in Europe. I also tended to work long hours, leaving my home before my kids left for school and often getting home after they had gone to bed. My career was going well, continuing to climb the proverbial "corporate ladder", but at what cost? How many baseball games will I miss? How many swim meets will I need to be late to? When will I be able to volunteer at my church or in my community?

Everyone should take time to figure out for themselves what is right for them and not just put their life on "cruise control." Are you doing what you want to be doing? If not, what steps can you take now to work towards your true life goals? Are you willing to make the sacrifices that may be necessary to get there? Are you willing to have short-term pain for long-term gain? What's the worst that could happen if you made a change and it didn't work out?

As I looked at my son sitting on the bus today, I smiled as a very happy father. I remembered his joy as I surprised him entering his classroom earlier and the security he felt holding my hand as we walked around during the day. It was great to spend a few hours of my work day helping the school as a chaperone and, more importantly, being there for my son in just one of the many life events I now won't miss.

(Photo from www.freefoto.com)

Charlotte Real Estate - Home Sale Summary for September 2009

Well, another month has gone by in 2009, and unfortunately for the Charlotte Real Estate Market, it appears to have moved in the wrong direction for people who have their home for sale. September followed a historical trend of increasing inventory compared to August. With the First-Time Homebuyer Tax Credit in full force through September, I was optimistic that we might see a different trend this year; but that didn't play out. Inventory remains higher than last year at this time, so we still haven't yet gotten back to last year's levels.

If you read and saw the video from last month's blog post, you know I was hoping that in September I would see the inventory trend cross the line to break the streak of 2009 inventory being higher than that of 2008. As you see from the below graph, that did not take place...

Looking at the individual month change, you'll see that, not only did the total inventory increase vs the prior month, but the inventory also increased in every single price range reported...

To get some additional statistics and commentary, click on the video below...

Though our September didn't bring the best news, I am still optimistic that the market will level out and get back to more reasonable levels in the future. Stay tuned for next month's report!

I often speak with people in the Charlotte Region trying to sell their home "For Sale By Owner" while introducing them to my real estate brokerage. When I ask them how they are marketing their home, a common response that I get is, "Well, I have a 'For Sale By Owner' sign in the yard, and it's on Craigslist. That's about it." While there is absolutely nothing wrong with Craigslist, (in fact we also advertise our clients' homes there) selling a home is not as easy as selling your 5-yr old patio furniture.

If you want to grab a quick bite to eat but you aren't sure exactly what type of food you are craving, chances are there is some place in your town where you can drive and find several restaurants to choose from all within a few blocks of one another. In other words, if you are hungry, you know where to go. The same is true with buying or selling used furniture... Craigslist and Ebay are two great places where those items can be bought and sold.

With real estate, it is entirely different, as there are hundreds of places where homes are advertised. There is no specific "Fast Food Lane" for houses. Craigslist is a good website, but how do you know that your buyer knows that? What if your buyer is working with a real estate agent, as more than 80% of home buyers are? If your home is not on the local Multiple Listing Service (MLS), your buyers and their agent may never know your home is for sale. Their real estate agent may have the buyer set up with an automatic search of the MLS that sends the buyer new homes that come on the market each day. If the buyer likes this process, they may never venture out to look at any other website for homes. Their agent could do their own search and simply show the buyers homes that the agent thinks are appropriate for them. If your home is not available on the MLS, your buyers will just find another home.

Maybe your buyer is not working with an agent, or even if they are, maybe they enjoy looking at homes online so they don't just rely on their agent. While it's certainly possible that they may choose to look at Craigslist to find their next home, odds are that they will be looking at one of the other hundreds of websites that show homes for sale. Realtor.com is the top website in the country for buyers looking to buy homes, but Yahoo! Real Estate and Zillow aren't far behind. If your home is not on these websites, your buyers may end up falling in love with someone else's home instead of yours.

Maybe they are looking specifically for a "For Sale By Owner" home. However, if they know about Craigslist, they may think of it as a place to buy used furniture, not homes. Instead of Craigslist, they look at websites that specialize in homes and search HomesByOwner.com hoping to find that special home that their agent missed. If your home is not on the "For Sale By Owner" website the buyers were looking on, they may have found another home instead of yours.

Maybe the buyers have heard you can search for homes on local real estate company websites. There are a lot of great search tools on some of the local and national company websites, so many buyers find a site they like and do all their home searching there. Since the real estate company websites get these homes from the MLS, if you aren't on the MLS the buyer will miss your home here too.

The point is, in real estate, you just never know where your buyer is going to be looking for their next home. You can't just put your sign out and put your home on one or two websites and think that a buyer is going to find your home. While of course it is always possible, it is highly unlikely. In order to give yourself the best odds of successfully selling your home, you have to have a strategy that BLANKETS THE MARKET and puts your home on ALL of these types of websites and venues.

If you still want to sell your home "For Sale By Owner", search out all the websites you possibly can and advertise your home everywhere. Unfortunately, most of these sites cost some money, but you need to get the most exposure possible to get as many buyers to your home as you can. If you decide you want to let a professional advertise your home, be sure to ask the agent where they will advertise so your home is marketed on all these different types of websites. Every agent has their own marketing plan, so make sure you know what they will be doing to advertise your home.

Though of course I have my biases, I always like to say...

Selling your home on your own is a lot like playing the lottery... you might get lucky, but don't count on it.