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It’s the Ask Jonathan Episode. This time, listeners asked for a market update, about what life is like as a Realtor and if you should waive an inspection or appraisal to make an offer more attractive to a Seller.
If you would like to leave a voicemail for the next Ask Jonathan episode, call and leave a message or text 980-880-5088. send an email to podcast@trpcarolinas.com or leave a message via any of our social channels.
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This week, I’m joined by Ely Portillo from the UNC Charlotte Urban Institute to discuss passage of the 2040 Charlotte Comprehensive Plan, the upcoming Unified Development Ordinance or UDO, new developments in the development at Eastland Mall as well as return to work plans.
You can also hear Ely and myself on the August 3rd Charlotte Talks podcast, where we discussed the role institutional investors are playing in the Charlotte housing market.
This week, Jonathan refutes the social media rumor that the housing market in Charlotte is in a bubble that’s about to burst with facts and stuff.
Show notes:
Here’s the Charlotte Axios story that started it all: Is Charlotte’s real estate market headed for a crash?
Freddie Mac Perspectives: “In 2018, we estimated the housing shortage to be 2.5 million units”, Housing Supply, a Growing Deficit.
Who’s Buying Houses? The 2021 Home Buyers and Sellers Generational Trends Report from the National Association of Realtors.
Who else is Buying? Institutional Investors (Wall Street). Here’s the report showing they own 17k homes in Charlotte: U.S. Single Family Rental 2020 Institutional Activity.
National Association of Home Builders report for May 2021
Mortgage Bankers Association June 2021 Mortgage Credit Availability Index
Your favorite real estate podcast is coming back with all new episodes in July and I’ve added a real estate help line. If you have a real estate question, I would love to answer it on an upcoming episode. To submit your question, call 980-880-5088 and leave a voicemail with your question.
Once known as the epicenter of nightlife entertainment in Uptown Charlotte, the Epicentre is facing a it’s third transition in less than 2 years time. In late 2019, after a string of violent events, the management company of the Trade Street property announced that it would transition from the destination for adult revelry to office space, to meet the growing demand for corporate space in Uptown. Charlotte’s Center City has long had a historically low vacancy rate for Class A and lower office space so this seemed like a good decision.
Then Covid hit and Uptown became a ghost town. With corporations sending their employees to work from home for the year, the shift to office space could not come at a worse time. Add to it the growing sentiment of some businesses to re-evaluate their space needs now found the Epicentre management team in a curious spot. The solution: create series of micro apartments inside the former restaurants, night clubs and the parking garage for tenants that are looking for an affordable place to call home.
The first grouping of these micro apartments is being built inside the former Whisky River, formerly a country music venue, restaurant and sports bar. Now, tenants can lease up to 120 sq ft of cozy space in the heart of Uptown. Each unit features room for a full-size murphy bed, a table and chair, one electrical outlet and access to a shared bath and kitchen. “It really helped that the former restaurant left their old cooktops, ovens and freezers. Instead of removing them, we’re allowing each resident to use at their own risk, provided they sign a waiver and complete a training course.”
To keep construction costs down, the former stage and bars remain in place, with micro apartments in the VIP section marketed as “Penthouse” and “Marque” units. Additional amenities that remain is the mechanical bull, which is free for residents to use and that the Touchtunes pay per play jukebox remains so each evening from 5pm-2:00am, residents can take turn selecting tracks to share with their friends. “I was going through a tough breakup with my boyfriend” said one resident “but I found it soothing that I could play “Goodbye My Lover” by James Blunt on repeat over and over until the pain just melted away.”
Once the space in Whisky River is filled out, the management team is ready to lease spaces in the former Studio Movie Grill (the spaces not on a slant will be at a premium), Strike City and Howl at the Moon. “Our goal is that as the weather warms up, we will begin leasing urban camping plots at the former Rooftop 210 location. How amazing would it be to glamp outside in Uptown on the rooftop of the Epicentre”.
April Fools
This week, Ely Portillo from the UNC Charlotte Urban Institute joins to discuss the support and backlash to the Charlotte 2040 Comprehensive Plan. Plus, we talk Thomas the Tank Engine and I try to explain why the housing market is completely insane. Finally, if you like drinking games, take a shot every time I say 106.
February 2020 was the last month that the real estate market wasn’t negatively impacted by the Covid-19 pandemic. This week, Jonathan looks at the effects on housing in Charlotte one year later and how likely is a proposed $15,000 Home Buyer Credit to become reality?
Union County homeowners are bracing themselves for sticker shock as the 2021 countywide real estate revaluation is complete and owners are receiving their notices in the mail starting this week. The last time that properties in Union County were re-assessed was in 2015 and since that time, the median home price has increased 51%. Based on data released by the Union County Tax Assessors office, the median value increase of all property (residential, commercial, industrial, raw land) was 35.6%.
Here’s what you need to know:
Property Owners can see their updated Tax Value online at https://unionnc.devnetwedge.com/ and entering their address information or parcel ID.
Once you receive written notice of your new tax value, you will have up to 30 days to appeal the value, which can be submitted online: https://www.unioncountync.gov/departments/taxes-property/2021-revaluation. The deadline for all valuation appeals is June, 2021. Your appeal will go before an Equalization Board to determine if your claim is valid.
Our firm can provide comparable sale listings to assist with your appeal. An appraisal from 2020 or 2021 will also suffice. Simply complete the form below and you will receive comparable sales from 2020 to assist with your appeal.
Note: It’s important that you use sales from 2020 instead of 2021 since, more likely than not, the values from 2021 are even higher than 2020.
Keep in mind that property taxes are comprised of the tax assessed value and a tax rate, which is set in July each year. Given the substantial increase in property tax values, it is unknown at this time whether the Union County and individual city leaders will pass a new tax rate that is revenue neutral (meaning that the rate will be decreased so that the median tax bill would be the same) or adjusted to somewhere in between revenue neutral and the current.
In 2015, County tax rate was reduced from .6600 per $100 to .3064 per $100 in connection with the property tax value reassessment. For 2020, the County tax rate stands at .2163 per $100 with towns like Indian Trail (.1850 per $100), Stallings (.2150 per $100), Monroe (.6163 per $100) and Waxhaw (.3850 per $100) adding their millage on top. Even at a revenue neutral rate, some property owners paid more in 2015 than they did in 2014.
However, until the new millage rate is known in July, your pro-rated property tax bill will be based on the current rate + the new tax value. That could lead to a pro-ration amount that is 30-60% higher than what the actual bill will be.
For home buyers purchasing in Union County, you should budget using the current tax rate + the new value since we don’t know what the new rate will be. The new millage rate will be set in July 2021.
Whether or not the Union County Board decides to adopt a revenue neutral millage rate or one that is higher, properties that had the highest percentage value gain will experience a tax increase.
This week, Jonathan is joined by WFAE Reporter David Boraks to discuss his series on an old asbestos manufacturing facility in Davidson, North Carolina that some hope to redevelop and the issues faced by the adjacent neighborhood.
Dive deeper into David’s reporting by visiting Asbestos Town on WFAE
Welcome to our 2021 Home Preparation Guide. The follow tips are a combination of improvements and repair items that are the most common found during a home inspection.
We highly recommend every property owner invest in a Pre-Listing Home Inspection, which will help uncover any serious issues that could kill a transaction later on down the road. If items are found, they can be addressed and corrected prior to the home being listed for sale or disclosed to prospective Buyers and addressed either by offering a concession or by selling “As-Is”.
A good first impression is everything. Prospective Buyers will spend time at your front door while their Realtor fumbles with the lockbox and unlocks the door. In that time, they will begin to scrutinize the exterior of the home so taking time here to unsure that everything looks its best will set the tone for the rest of the showing.
Additionally:
Your prospective Buyer has already toured your home online before ever stepping foot into the house physically. It’s important that their visit should meet or exceed their online expectations. Consider having your home professionally deep cleaned prior to showings and do avoid any strong incense smells.
Pre-pack much of your house. When it comes to clothes, remove the clothing that is out of season from your closet and pack them away in the garage or storage unit.
Also:
Kitchen and Baths are the two areas that are judged the hardest by prospective Buyers so these are two areas I tend to pay the most attention. If your home has worn out kitchen appliances, replacing them with a new matching set can be worthwhile if it’s within your budget. If not, price your home accordingly.
A thorough cleaning or a fresh coat of paint with new hardware can give even the most outdated kitchen a new lease on life. Your pantry should be 1/2 to 3/4 full and your counter tops should have no more than your absolute essential appliances for daily use (coffee maker, blender, toaster). Everything else is packed away.
Should you invest in solid-surface countertops like granite or quartz? If it is within your budget, absolutely. The cost of granite counters have fallen considerably in recent years, leading to their universal appeal.
Your bathroom should be limited to the essentials. Remove any hanging baskets of soap or freshen up the space by adding new light bulbs, a fresh shower curtain, and clean white towels.
Yard spaces are important to Buyers and the Spring is a great time to show off a beautiful green lawn. If your lawn was beat up during the previous Winter, consider overseeding it in the very early Spring to help fill in the bare areas. If your grass coverage isn’t your problem, apply fertilizer to green up your lawn and prevent weed growth.
The most common question I receive is if you should spend money improving your home before it’s listed for sale.
Most Buyers today are looking for turn-key move-in ready properties that require minimal improvements so, for this group, a house that has fresh paint and updated fixtures really appeals. However, if your budget does not support spending additionally on improvements, a house that is very clean, appearing to be maintained, and priced appropriately can also appeal to another audience who are looking for a home they can add their personal style to. The key here is to price the home appropriately for the level of the improvements.
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