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