As you consider Charlotte Homes for Sale many are seeking Charlotte Foreclosures. You will find that the majority of the Charlotte NC Foreclosures are located in the "starter neighborhoods" that tend to be in Charlotte and not so much in the Charlotte Suburbs. There are definitely foreclosures in the suburbs but they are not as frequent. This actually keeps the demand high.
There are deeper discounts in the inner city neighborhoods with a larger amount of foreclosures and demand is not quite as high. The benefit of a foreclosure is the equity that you will have in the near future. It will take time before you realize the equity because the foreclosure actually depreciates the home values of the neighborhood. The greater the number of foreclosures in a neighborhood will result in a longer time for the values to recover. Keep this in mind when investing in foreclosures. Consider this as a guide about your investment decision. If you are looking for the shorter term then you will look for an area with minimal foreclosures. Yes you will not get as much of a discount but you will have a nice home in a nice neighborhood. The neighborhoods with many foreclosures offer deeper disounts but the neighborhoods will likely take several years until the high risk loans run their course. Since lenders have stopped making these loans the neighborhoods will attract stronger buyers and help keep the investors out. How does this impact your real estate investment?
The high risk loans enabled many "investors" to have easy access to cash. Charlotte Investors purchased new homes in new neighborhoods because they felt they could rent these homes, perform no maintenance and then resell them for profit in a couple of years. The problem arose when they realized they were not the only investor in America investing in new homes in Charlotte. The net result was many entry level neighborhoods were inundated by investors and renters. There is nothing wrong with renters but ultimately a renter does not care for the investor's home the way a home owner would. Many neighborhoods were trashed and the investor feeding frenzy spiraled downward. This did a grave disservice to the home owner in the neighborhood becaus e now the new home owner lost value in their first home. It was a sad situation. When the investor could no longer get funding to remain afloat, he let the homes go into foreclosure (further devaluing these neighborhoods).
This mess will take several years of solid economic fundamentals to rectify the situation. Give me a call and together we can work to determine the home that is right for you. There are deals. The overall average depreciation in Charlotte last year was 5% based on the foreclosures. This will give you an idea about the amount of discount you can expect in the Charlotte Real Estate market.