Charlotte Real Estate Market News » Charlotte Selling Tips http://www.boxrealtyonline.com/blog Realty News Tue, 27 Apr 2010 13:10:10 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 The Answer for Sellers http://www.boxrealtyonline.com/blog/2008/10/the-answer-for-sellers/ http://www.boxrealtyonline.com/blog/2008/10/the-answer-for-sellers/#comments Sat, 11 Oct 2008 01:40:08 +0000 Chris http://www.boxrealtyonline.com/blog/?p=37 Charlotte, historically, has been and still is a more stable and consistent market than most when it comes to real estate. The influx of big business and small business has caused a need for housing. Though the media doesn’t focus on this growth. They have pinpointed one of the giants, Wachovia, who is struggling and by the looks of it will have to merge with another bank.
The lending industry is distracted right now and thier focus is on repairing the holes in its systems and loss mitigation. They are not focusing on lending to people right now. Good borrowers are being turned away by underwriters who are afraid to lend. These National trends are affecting our local real estate market. But, with thousands of new residents each year coming to the Charlotte area they need homes to live in.
Sellers who can’t find a buyer right now are struggling to find out what to do with these mortgages. Granted there are not many sellers who are just wanting to upgrade. Most of them need to move, and they need a buyer. The good news is there is an option that would play the role of a buyer, the lease/purchase option.
Basically, the buyer who wants to buy, but can’t right now for some reason or another, approaches the seller and acquires a position in the property at todays prices. This postion usually costs 1-3% of the purchase price (non-refundable, but if they do close they will get credit). They also negotiate the rental agreement, which usually is for one or two years. The buyer has bought the first right of refusal, and to maintain this position they have to pay their rent on time and act like they own the property. The good side is if the property appreciates they get that equity!
What does the seller get? They get their home sold, mortgage paid with positive cashflow, a nonrefundable deposit, and they don’t have to be a landlord!
Given the fact that the mortgage industry is in distress and distracted, this is a win-win for both sides!

Here is a great site that further explains the Lease Purchase Option.
http://www.lease2purchase.com/


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