Lake Wylie Waterfront Sales Update - December 2009

Wow, it is great to see the sun shining on Lake Wylie today! I love to show properties on days like today, when the water looks blue and calm. Sales have definitely been picking up the last couple of months, and we’re ahead of last year in NUMBER of waterfront homes sold (see chart).

Number of waterfront lots sold (only 11 so far this year) are still rather dismal compared to 2008 and a “normal” year 2007. Reality is redefining “normal” in many ways this year:

Sales of “distressed” properties (those labeled as short sales, foreclosures, etc.) represent 26% of total this year.
Almost half of the sales in the last two months have been short sales/foreclosures. I anticipate this to be a continuing trend into 2010. The government has even announced a tax credit for borrowers completing a short sale.
Waterfront homes labeled as short sales/foreclosures have sold for 54% of their original asking prices.
Remaining WF homes (not labeled distressed) have sold for 77% of original price. This compares to 83% in 2008, 92% in 2007.
Average time to sell has increased dramatically. In 2007, sold homes had been on the market for 4.5 months. In 2009, it’s about a year. Waterfront lots sold this year average 459 days on the market.
High dollar homes and lots are not selling well this year. Only four homes have sold for >$1 million in 2009. Average sales price of home is down to $569,000, from $785,000 in 2008. The lower priced homes are the ones that are selling. Twenty-three of the homes sold this year were in the under $500k range - - compared to just 8 homes in that category last year!

That being said, the “new reality” is bringing some more buyers into the marketplace in recent months. I’ve got lots of buyers calling and looking, but taking more time to make a decision because 1) there are more choices, and 2) economic uncertainty, and 3) waiting for prices to “hit bottom”. I have written several contracts on waterfront property in the past couple of months, and am encouraging buyers to commit to some of the excellent values that are available.

Typically, buyer activity drops off significantly in December as we approach the holidays, and then we pick up again in late January/February (depending on the weather!). So, sit back and enjoy the holiday season. Visit my website for market updates, as well as Events and Activities to enjoy over the next few weeks!

For more Lake Wylie real estate information, visit my website, TheLakeWylieMan.com. 

Lake Wylie Foreclosures

In 2009 to date, about 20% of waterfront sales have been foreclosures, bank owned, or short sale properties. The average sales price of these foreclosed waterfront homes to date in 2009 is just over $570,000, representing a 51% discount over the original sales price.


Wow! A half price home! What a bargain!


Perhaps, or perhaps not. In some cases, the homes were not completely finished, and the buyers had to assume repair or finishing costs. In most cases, the original sales price was way too high, even for the robust sales market of 2007. Or, the price was simply higher than the market could support. In 2006-07, when sales were booming, builders began constructing homes that were more and more expensive. The market got to a point where there were simply more luxury priced homes that there were buyers in that segment.


As the real estate markets around the country started to crumble, fewer buyers were able to relocate to our market. Their homes wouldn't sell, and they were stuck where they were. This had a significant impact in our area, considering that most of the higher priced homes in our market were being purchased by relocated buyers.

Most of the Lake Wylie waterfront foreclosures to date have been new, or at least recent, construction homes. Most of the deep discounts have been homes that were originally priced for well over $1 million, selling for $600-$800k.


I've received a record number of calls this year from bargain hunters. My hands have been full trying to balance expectations with the reality of the market. Many people call wanting a waterfront lot with a great view, deep water, no power lines in sight anywhere, level building site, excellent school district, all for under $200,000. Those lots just aren't out there.


I receive a lot of calls from people who want a 3000 sq ft home, recently built, on the water with a great view, public water and sewer, move-in ready for $400,000. Those homes just aren't out there.


Now, there have been some extreme bargains this year. I sold one waterfront home, brand new with all the bells and whistles, for just over $600k. It immediately appraised for over $850k and the buyers were estatic. But if they put it on the market today and tried to sell it for that amount, it would take awhile.


Are there good values for buyers right now? Absolutely. But real estate, like many investments, should be considered a long term investment. Consider not just how much money you can make in the deal, but how much life enjoyment you will receive. A misty morning sunrise over the lake, the face of a kid getting up for the first time on waterskis, the smell of barbecue from that family reunion lakeside, the sight of a duck and her ducklings waddling across your back yard . . . absolutely priceless!


For more information on Lake Wylie real estate available right now, Lake Wylie foreclosures, and living on this beautiful lake, please visit my website, The Lake Wylie Man. David Coone is a waterfront specialist, a licensed realtor in NC and SC.

Lake Wylie Foreclosures and Short Sales

You've probably heard a lot lately about foreclosures and short sales in the real estate market. Depending on the market and source, you may have heard that "half of current real estate sales are foreclosures or short sales".

I can tell you that on Lake Wylie, according to the MLS, about 20% of waterfront sales in 2009 to date have been short sales or foreclosures. Some other sold properties had probably been heading in that direction, with actual sales price falling below 75% of original price, but only 20% have actually been classified as such.

You may be wondering about the difference between a short sale and foreclosure. A bank owned (or REO, real estate owned) property is in foreclosure, and its asking price will be accepted by the bank. You may make an offer below asking price, and it will likely be countered. Banks want to demonstrate to their shareholders and auditors that they tried to get the best possible price. Offers must be approved by several individuals or a committee, so it takes up to 5 days for a decision. Rarely is any business done on weekends or after hours!

Foreclosures may or may not be a good value. Often a distressed home will have repair issues, which will have to be funded by the buyer. The sales price should be carefully measured against comparable sales in the market as well; as the bank is attempting to cover the defaulted loan as well as associated costs. Compared to the original asking price (if the home was on the market prior to foreclosure), it may seem like a good deal. However, it is possible that the home was overpriced originally. Ask your realtor for a fair market analysis.

In a short sale situation, property is headed towards foreclosure. The buyer has missed a few payments, but the lender has not started the foreclosure process. The idea behind a short sale is to convince the lender to accept less than what is owed as payment in full, in order to avoid the expense and hassle of a foreclosure.

In a short sale, the property owner offers the property for the amount he thinks the lender might accept. It must be disclosed to the buyer that the offer is contingent on approval by the lender, as a "full price" offer may not, in fact, be accepted. Once the seller has a written offer, he then presents that offer to the lender, along with a hardship letter on why he cannot pay his loan.

Short sale negotiations are usually handled by a loss mitigation department, which may not communicate with the collections department. Decisions are made by committee, and it often takes weeks to even receive acknowlegement of an offer. Acceptance of an offer usually takes even longer. An appraisal is generally ordered for the committee to evaluate the offer. They need to determine if the seller is truly unable to pay. The committee may also delay a decision to see if better offers are received. Remember, the bank did not solicit the offer in the first place!

It is not unusual for the short sale process to take 6 months or more. It all depend on the lender, the area, and the individual situation. I've had one short sale that flew through as quickly as a traditional home sales transaction, but that was outside the norm. Most of the time, it is a process that tries the patience and the nerves.

Also be aware that both foreclosures and short sales for properties are typically in "as is" condition. Certainly have the home inspected, but don't expect the bank to foot the bill for repairs. Make sure your budget has room for some incidentals.

If you're in a hurry, a short sale opportunity is probably not for you. But if you have some time flexibility and are mentally prepared for the process, you may end up with a very good value.

Visit Lake Wylie foreclosures for a list of waterfront property currently in foreclosure or short sale. For more information on Lake Wylie real estate and waterfront properties currently for sale, please visit TheLakeWylieMan.com.

Lake Wylie Real Estate is Hot! Hot! Hot!

Lake Wylie real estate is hot! hot! hot! Hey, everything around here is hot! hot! hot! It was 97 degrees yesterday, and I was seriously afraid of becoming a grease spot on the pavement.

Maybe we ought to cancel August next year. The weather is stifling, people in general are out of sorts, and the summer vacation mindset is basically over as schools have the month scheduled with open houses, registration, football practice, meetings, etc. Might as well be in school already! But I digress.

Real Estate. Hot. My phone has been ringing off the hook. I've shown lots of waterfront property in the past couple of weeks - - lots, river cabins, million dollar homes, the whole gamut.

What I continue to see, however, are buyer and seller expectations on different playing fields entirely. There has ALWAYS been a difference between what buyers want to pay and what sellers want to receive - - hence the need for negotiations. However, what I'm seeing now is buyers starting the bids at WAY below asking price - - sometimes 60 or 70%, vs the polite 90-95% that we were accustomed to a few years ago.

What I'm also seeing are buyers walking away after their first offer. That has happened more in the past 3 months than in my entire career as a real estate agent.

I think that the foreclosure sales in the area have tainted buyer expectations on ALL real estate pricing. Many buyers seem to think that sellers will accept lowball offers, and keep trying until they find a seller that will.

It's going to take some time to get back to business as usual. As more foreclosures work their way through the system and hit the market, prices will continue to be an issue. Waterfront homes most affected are those in the upper price tiers ($700,000+), as many in the foreclosure market are $1million+ homes that are being auctioned off in the $600,000+ range. It's tough to compete against those.

To see what has sold on Lake Wylie thus far in 2009, take a look at Recent Lake Wylie real estate sales on my website.

To read other blogs on Lake Wylie and Charlotte area real estate, Lake Wylie living, and Lake Wylie waterfront issues, visit my website, TheLakeWylieMan.com. Thanks!

Real Estate Terms & Abbreviations

Have you ever read a real estate ad that said something like, "Beautiful 2500SF WF home w/ 3BR/2.5BA, FROG." Before you begin worrying about reptile infestations, you might want to acquaint yourself with some basic real estate terms and abbreviations:

• AC - acres. Not to be confused with A/C, which is air conditioning!
• BA - bathrooms. A "half-bath" has a toilet and sink, but no tub or shower.
• BPO - Broker Price Opinion. Not an official appraisal, but a price based on an analysis by a real estate professional.
• BR - bedroom. Must have a closet and window to qualify as a bedroom.
• CPT - carport
• CVAC - central vacuum
• DOM - days on market. How long a property has been listed for sale.
• FP - fireplace
• FROG - Finished room over garage, also referred to as "bonus room".
• FSBO - For sale by owner
• HLA - Heated living area.
• Total Fin HLA - finished square footage.
• HOA - Homeowners association
• HSF - Heated square feet. Living area. Does not include garage, etc.
• MBR - Master bedroom
• MLS# - Identifies the property in the multi-listing service (MLS) used by area realtors.
• Owner Agent - The owner is the real estate agent
• REO - Real Estate Owned. Property has been foreclosed.
• Unf SqFt - unfinished square footage - potential living area. Does not include garage.
• W/D - washer/dryer
• WF - waterfront
• WV - waterview. If indicated "seasonal", water is visible only in winter!

Want to add to the list? If you'd like a term defined or want to contribute, please leave a comment! Terms and abbreviations vary by region.To return to my website: Lake Wylie Waterfront Real Estate

Shared Ownership of Lake Wylie Waterfront Property

A weekend retreat. A summer getaway. A blissful month on the lake in prime season. Your vacation dreams are unlimited, but unfortunately your budget is not. You may be surprised to learn that your dreams are more than attainable: You can own a vacation home without the hefty pricetag if you are willing to share ownership.

How many times have you wistfully driven through lakefront neighborhoods, dreaming of holidays on the water? A weekend at the lake, or a long summer vacation…But owning a vacation home is just not a possibility for you. Or is it? Joint ownership may help you make your vacation dreams a reality.

Summer is just around the corner, and many people are carefully reassessing their vacation plans. Rent again? Try a risky time share that will depreciate in value almost upon purchase? What happens if your plans change last minute? Cancellation fees, no opportunity to reschedule in peak season…If only you could afford a vacation home of your own! Through joint ownership, you can!

Solid reasons to consider joint ownership:

• Buying Power: You will be able to purchase the type of property you might not otherwise be able to afford: more space, more amenities, an ideal location…In other words, you can enjoy the vacation home of your dreams!
• Investment: You will OWN a piece of the property. Unlike leasing a spot on the calendar (time shares) or giving your money to someone else (rentals) you will own property that will appreciate in value and offer tax incentives.
• Enjoyment: Being the sole owner of a vacation home can be exhausting and expensive, especially if you only stay there a short time out of each year. Sharing the work and costs with others gives you the freedom to really ENJOY your new home.
• Oppportunity: Never has there been a better time to find your dream home. It’s a buyers’ market, with many homes and locations to choose from. And more lenders are offering mortgages geared toward joint ownership.

With joint ownership, a written Ownership Agreement is a must. To ensure that each owner’s interest is protected, it is advisable to work out as many details as possible before purchase. Such considerations would include:

• Cleaning/upkeep/maintenance/repair duties & expenses
• Home décor & storage
• Scheduling
• Restrictions (pets/smoking/etc)
• Exit strategies
• Renting/sharing with non-owners
• Default/Dispute Resolution
• Property manager (one of the owners or an independent property management company?)

Also keep in mind that finding compatible co-owners is essential. Look for partners who are dependable and financially sound, with similar habits and expectations. With the right preparation, you will be able to enjoy the home of your dreams, the benefits of a solid real estate investment, and a lifetime of incredible vacation memories.

Check out the many Lake Wylie waterfront properties that would be perfect for shared ownership: Lake Wylie waterfront real estate. Call David Coone to discuss how you can own your Lake Wylie waterfront property.

Offer Accepted: Now What??

So you've submitted an offer on a house, and it has been accepted. Congratulations! Now, how do you make sure the deal closes on time, as painlessly as possible? If you have a good real estate agent, you can count on him to guide you through the process.
Visit my website's Lake Wylie area Preferred Service Providers to find recommended service providers. Read your purchase contract carefully, as it will contain key dates and action required. In general, though, this is what is required of the buyer:
1) If you're not paying cash, the first thing you need to do is apply for a loan! Loan application should usually occur within 3 days of signing the purchase agreement. It's best to contact at least three mortgage financing companies. The mortgage company is required to provide an "good faith" estimate of closing costs within 3 days of your application.

2) Select a closing attorney. Your real estate agent can send over required documentation that will be needed for the attorney to perform the title search and begin preparing closing documents. It is best to give the attorney as much time as possible, setting the appointment 3-4 weeks ahead of closing date. In today's market, loan applications can take a bit longer than they did a couple of years ago, especially for larger loans.
3) Schedule a home inspection, to be completed 2-3 weeks prior to closing. A home is one of the largest investments you'll make, so it is important to know everything you can about the condition of the house. If there are any necessary repairs or safety issues, you'll want to give the seller enough time to resolve these issues before closing. It is important to understand that "cosmetic issues" (paint peeling, worn carpet, rips in the wallpaper) are not required to be fixed by the seller, unless specified in the contract. Safety issues and other required repairs generally are the responsibility of the seller, unless otherwise specified in the contract (for instance, when a property is sold "as is"). You will want to attend the home inspection.
4) A wood-infestation survey (CL-100) is required by lenders. Some home inspectors can perform this duty, or can refer you to a qualified inspector. This should be completed 2 weeks prior to closing.
5) It is recommended that a survey of the property be made. The surveyor will verify property lines and make sure there are no infringements or other issues.
6) Occasionally there is need for a structural inspection, lead paint risk assessment (if property is built before 1978), well and septic inspections, or other environmental tests.
7) Your lender will set up an appraisal of the property.
8) Insurance: You will need to arrange for homeowner's insurance and let your lender know your provider information. Most lenders will pay the homeowner's insurance premiums out of an escrow account.
9) Home Warranty: Check the purchase contract for information about the home warranty. In some cases, the seller will provide a home warranty. For new construction, builders usually provide a year warranty. If no warranty is provided by the seller or builder, you may want to consider purchasing a home warranty to cover defects and repairs for a limited time.
10) Utilities: Contact utility companies a couple of weeks ahead of time to arrange services to be transferred to your name as of closing day.
11) Review HUD settlement statement: The day before closing, you should receive a copy of the settlement statement providing actual closing costs. You'll need to bring cash or a certified check covering the amount due from the buyer. Throughout the closing process, make sure there is good and timely communication between you, your lender, your real estate agent, and your attorney. Quick response to inquiries on everyone's part will help the closing go smoothly!
For all of your Lake Wylie Real Estate needs, visit my website. Sign up for free property updates, access buyer and seller resources, and explore homes and communities through virtual tours!

What to Look for in Waterfront Property on Lake Wylie

When in the market for waterfront property, the first rule to know is that all rules are out the window! Literally!

Evaluating a house or building lot based on “cost per square foot” or “cost per acre” just doesn’t work with waterfront property. Instead, property price is impacted by factors such as view, water depth and clarity, number of shoreline feet, whether or not a dock is allowed and the size of dock allowed, access to the property by water, shape of the lot, and neighborhood.

In general, waterfront property nestled in a cove is less expensive than a comparable property with a “big view”. Cove property, however, usually offers more privacy and more “calm water” for swimming. You need to decide what factors are important to you, and how much you’re willing to spend.

Restrictions play a big part in the price and use of a lot. Lake Wylie restrictions can be complicated considering that the jurisdiction of the lake falls under two states, three counties, eight cities or municipalities, as well as the federal Army Corps of Engineers and Duke Power. Depending on the area and jurisdiction, the buffer (required space between the lake and any building) may be 50’, 100’, or even 200’ from the 570 line.

Be careful not to make costly mistakes resulting from not knowing the lake or restrictions. For example, a lakefront home may have an outstanding view, but insufficient water frontage to meet minimum requirements for a dock. Or, a lot may be on a beautiful point with water on three sides, but because of set backs there may not enough room to build a house or install an adequate septic system. In another case, a property may be in an area of the lake that is shallow or has a shoal and difficult to maneuver when the water is lower than optimum level. Knowledge of these considerations is critical!

When buying or selling waterfront real estate, it is best to work with a real estate agent who specializes in lakefront property. An experienced waterfront agent will be familiar with the conditions in each area of the lake, will be very knowledgeable about Duke Power’s Shoreline restrictions, and will be able to guide you through each consideration unique to lake property. So when you’re ready, call in the specialist! Lake Wylie Waterfront Real Estate

Square Footage - Understanding What's Included!

When comparing homes that are very similar in style, location, and level of finish, it is helpful to use square footage as a comparison factor. Real estate listings qualify square footage in a variety of ways: heated square feet, finished square feet, heated living area, unfinished square feet, unheated square feet, just to name a few! Depending on the region of the country, the terminology varies even more. In Florida, for example, you may encounter ACSF (air conditioned square feet.) It can become a bit confusing!

There are standard real estate guidelines used by realtors and appraisers for defining and measuring square footage in a home. Advertised square footage in real estate ads or on the multi-listing service should adher to these guidelines. Knowing these guidelines will help sellers understand how their home is measured, and will help buyers understand what is included in advertised square footage.

First of all, Finished Living Area is space intended for human occupancy. It must be heated by conventional, permanent systems. (Portable heaters would NOT qualify.) It must have floors and ceilings made of materials generally accepted for interior construction. Finally, it must be directly accessible from another finished area. If you had a finished laundry room only accessible from the garage, for instance, it would not be counted in finished living area. An enclosed porch would not be counted unless it had a permanent heating system.

Square footage for a home is calculated based on exterior walls. If possible, one measuring a home would measure the outside of a home, then subtract any unfinished areas (such as an attached garage). Sometimes it is not possible to measure from the outside, and so interior measurements are made. In these cases, the standard is to add 6" for an exterior wall, and 4" for an interior wall to calculate total square footage.

To qualify as living space, the ceiling height must be at least 7 feet. Often in bonus rooms or A-frames, upper level rooms have slanted roofs. In this case, only areas with at least 5' high ceilings are counted, as long as at least half of the room has a minimum of 7' ceiling. Any portion of the room with less than 5' ceiling is not counted in living area square footage.

Hallways, closets, and pantries are counted if they are part of the functional living space. If the furnace, water heater, or similar items are located within a small closet within the living area, that square footage is counted. However, if the furnace, etc. are in an unfinished "mechanical room" in the garage or basement, that area is not counted in finished living area.

Unfinished square footage should include those areas that are under roof and could be finished out for additional living space. This definition usually includes unfinished basements, or unfinished rooms above a garage (as long as it is accessible by a permanent staircase). A garage should NOT be included in the "unfinished living area". Generally, unfinished square footage descriptions should be clarified in the "comment/remarks" section of a listing.

If you have questions about the square footage calculations used on a property, ask your real estate agent for clarification. Finally,remember that cost per square foot is just one measure. Level of finish, upgrades (granite countertops, whirlpool tubs, etc.), condiditon of the home, location and/or view, and other qualitative measures need to be considered as well.


For all of your real estate needs, visit Lake Wylie Real Estate for property searches, newcomer information, community links, and virtual tours.

Negotiating on a New Construction

Have you ever been in the market for a new home, and found one that was almost perfect, but not quite close enough? Perhaps the carpet or flooring wasn't quite what you had in mind. Or the light fixtures just weren't your style. Maybe the dining room was too small, and if you could just remove the wall and open it up to the living area, it would be fine.

The truth is, when you're buying a house, everything is negotiable! The builder may, if requested, be willing to make structural or cosmetic modifications to change the house to fit your needs. I've seen builders move walls, open up areas, add walls to separate an oversized bonus room into two smaller rooms, change the direction of staircases, and more.

Light fixtures? Easy. Add some built-in bookcases? Can do. Turn the deck into a screened porch? Why not. Add a basement? Well . . . that one might be tricky. Within reason, the builder may be willing to change things that you may think are fairly major. Of course, the cost to make the changes are quite negotiable as well. We're in a buyer's market right now. There are over 200 new homes on the market in Lake Wylie area alone.

While there are many homes to choose from, sometimes it is difficult to get everything you want: school district, yard size, bedroom configuration, neighborhood amenities. Decide what's most important to you. Then, when you find a house that is close to your specifications, don't be afraid to ask for modifications, if it makes the difference between "deal" and "no deal." Before you stop considering a home because of its "imperfections", have your realtor discuss any concerns you might have with the seller. Ask the builder if those hindrances can be overcome by modifications. Most builders, you will find, can be very accomodating!

It is very helpful to the builders to hear your feedback. They'd MUCH rather consider making changes, rather than have buyers simply disappear.

Visit my website for more Lake Wylie Real Estate Buyer Resources. You can also search for all real estate in Charlotte and surrounding areas. For all of your real estate needs, call on The Lake Wylie Man!

2008 Waterfront Sales - A Year in Review

What can we say? 2008 was a year to develop patience . . . patience as we recovered from a record-breaking drought, followed by what can only be described as a "crisis" in the mortgage industry, followed by crazy gas prices like we've NEVER seen before, followed by economic challenges that we haven't experienced in years.

Number of homes sold on Lake Wylie were down 43% vs 2007, and number of waterfront lots sold was off by 60%. Properties that DID sell stayed on the market twice as long as the average waterfront property sold in '07. Not exactly a year for a realtor's "brag book"!

And yet . . . even in the midst of storms, rainbows do appear. Did you know that of the Lake Wylie waterfront homes sold in 2008, twenty percent (10 homes) were $1 million+ properties? That's a record, folks! As a comparison, in 2007, MLS reported only 9% (8 homes) sold for over $1 million.

More good news - - with the drop in mortgage rates and price adjustments on some of the properties for sale, fourth quarter sales began to bounce back, doubling the number of waterfront properties sold in 4th quarter 2007!

Buyers have never had so many lakefront properties from which to choose. There are currently 175 building lots and 117 waterfront homes listed on MLS! There is a good selection of lots under $300,000, with the majority of lots listed for between $300k and $450k. Homes listed are at a nice variety of price points, from the "summer places" for under $500k, up to the waterfront estates over $1 million.

The lake looks gorgeous right now, with water levels at "full pond" and rain conditions back to normal. Gas prices are manageable, back to rates where people feel like they can take the boat out on a warm spring day without breaking the bank.

All in all, we're very blessed to live in such a beautiful place. Lake property will continue to be a solid investment and just a wonderful way to live. Please visit my website, http://www.thelakewylieman.com/, and see what's offered on Lake Wylie right now. Let me know if I can be of service to you!

David Coone

The Lake Wylie Man

For more blogs on Lake Wylie living, Lake Wylie real estate, and resources for waterfront homeowners, visit my website!