What About Home Improvements?

In my May Newsletter, The Marsoun Report, I wrote that buyers are increasingly looking for more updated living space. Traditional space is becoming less attractive in comparison to Contemporary space. Plantation Shutters are less attractive as compared to Blinds that can be raised or lowered. Stainless Steel appliances are almost a requirement. More upscale brands, Bosch, Thermador, SubZero, Viking are becoming the norm.

Many people who read my Newsletter have commented to me about that situation.

The truth is that many of us (excluding me) will purchase a car every 3 or 4 years, spending upwards of $25,000 on an asset that immediately begins to depreciate, while we maintain the same home for almost twice that time. Upgrading your property will usually will appreciate the value of the property. Additionally, you will have the benefit of those upgrades.

Reid's Will Exit Seventh Street Station

When I decided to move downtown in 1998, one of my concerns was where will I buy my groceries. Fortunately, that is when Reid’s opened the Seventh Street Station store. It hardly seems like 12 years!
Effective June 30, 2010, Reid’s will no longer anchor the corner of the parking garage, they have elected to not renew their lease. Talk about a shocker!
Selling real estate in downtown Charlotte was made somewhat easier because of the special attention that Reid’s gave its customers; home delivery; special orders; house accounts; best meat department in the city; bakery and catering; excellent wine selection and a convenient wine bar. The uniqueness of these services made Reid’s stand out amongst many competitors.
More than these services was the friendly nature of the employees. Each time I walked into Reid’s I was greeted by everyone from whoever was sweeping the floor (sometimes the owner) to Chuck and Pam Richards. These are probably stories that each of us could repeat as Reid’s touched us all. I often felt as though I spent more time at Reid’s than at home.
Weekend cooking classes became very popular, and Heidi Billotto would always fill all the seats. Reid’s would offer the students a 10% discount the day of the cooking class, always a very popular reason for taking the classes.
The wine bar itself became a regular stopping place for people waiting for traffic to die down before heading home. The Wednesday and Friday wine tastings allowed me to market myself as a realtor and still enjoy the friendship and camaraderie of the patrons, and of course, the great wines that were offered.
Special cooking tips from Bucky or Mac helped me to become a better cook as well.
All this changes on June 30, 2010.
My first inclination was to try to fight the change, start a grass roots movement to keep things going the way that they have for the past 12 years, but that does not seem to be a possibility. Reid’s is not planning to disappear, but reinvent itself. All things are changing, the way we read books, the way we get our news, the way we look for phone numbers, how we bank (anyone still have a passbook?), and grocery shopping is also changing. The plan is to relocate in an area that will allow the business model to produce a profit for the company. One thing that will not be affected by this change will be the gift business, gifting@reids.com. In these times, those who can change and adapt will succeed, those who cannot, will not!
Pam and Chuck are concerned for their employees, many who have been part of the Reid’s family for generations. Other locations are being considered, and while the size of the store may change, the customer service will not as many of their employees will continue on.
Let’s make these last two months something special for Reid’s and all of us.

Molly McPhersons Will Occupy "Big Daddy's"

New restaurants are beginnig to open. The Observer had an article on Sunday 4/11/10 talking about Jim Nobles new restaurant called "Kings Kitchen", and promises of a version of "Roosters" downtown by the end of the year.
Another planned opening by another group is Molly MacPherson's. "Our plans are to welcome you to our newest pub early July 2010! We are planning to take the space formerly occupied by Daddy's American Bar & Grill on the corner of W. 5th and N. Church. We hope it will become your new favorite place to hang, grab some delicious food, and enjoy a drink or three."
With Ri Ra's and Connolly's just up Fifth Street, we will have plenty of places to watch soccer on the big screen!

Signs Of A Turnaround

We have all been looking for positive signs that the economy has changed enough to feel better about our property values. Well, the 1st Quarter may have brought that to us.
The enclosed chart shows the sales history for 2009 vs 2010. During the 1st Quarter of 2009, only 8 properties were sold compared to 20 properties in 2010.
The size of the units sold in 2010 represents about a 10% increase in size, and an equal increase in average sale price.
An encouraging fact is that properties are selling at closer to the original asking price.
To be sure, some of the property sold represents foreclosures, short sales, or other repressed pricing from prior years. These sales are a necessary part of an “inventory clearance” process, not unlike what you might find in a department store at the end of a season. The sooner these properties are gone, the sooner we can return to a normal selling environment.
The good news is that Buyers are returning to the market. I have had a significant uptick in showings on my listings, even those listings that are labeled either contingent or conditional! This is also reflective of Sellers taking an aggressive view of the value of their property based on the current market conditions. The chart above shows that Sellers are getting 95% of their asking price, while the average $ per square foot has gone down. Clearly this is a market driven change. This market condition will not assume the same type of 6%—8% appreciation of prior years.

The New Urban Century

This picture was taken from the intersection at Seventh and Tryon. It is a prime examples of what Michael Smith is talking about in an article published in the April 1st edition of CNN Living.
The picture is the recently completed renovation of St. Peters Episcopal Church with the looming presence of The VUE Charlotte behind it. The contrast of the 108 year old building and the still unfinished VUE speaks volumes to Charlotte being willing to keep what is good, and add to it.
If you look the other way from this intersection, you will see the rising structural support beams for the UNCC Uptown Classroom Building. It is about 3 floors from completion, and the visual impact that it is having on the city is incredible.
I believe that much like the changes that have taken place since BankofAmerica created the Gateway Village area, UNCC will pull development towards it, further expanding downtown Charlotte, and increasing property values along the way
"As you look at the cities that are going to thrive in the next century, there's a belief that we're entering the urban century," says Michael Smith in an article in USAToday. "There's a new urbanism that's not about cul-de-sacs or expressways. It's sidewalks, bike paths and parks." "We're creating infrastructure for human beings, rather than automobiles."

First Ward Park To Follow UNCC Classroom Building

Construction is scheduled to start this fall on a 4.5 acre-lot on Brevard Street between East Seventh and Ninth streets, said Daniel Levine, president of Levine Properties, which will pay the up-front costs of the $9.6 million construction project.

With restaurants and other attractions planned nearby in later phases, the park ultimately could draw visitors from more distant communities along the light rail line, Levine said.

"We're going to make it a great urban neighborhood," Levine said. "In 30 years, we hope to have Charlotte's equivalent of (New York's) Greenwich Village."

Levine Properties is moving forward with plans for the first phase of a 22-acre mixed-use development in First Ward. Long-term plans call for residences, offices and retail businesses such as restaurants and shops and possibly a hotel.

First Ward Park is part of a partnership between Levine, UNC Charlotte, Mecklenburg County and the city of Charlotte. Park and Recreation was gathering feedback this week on the park's master plan.

Crews will level off the drop in elevation at Eighth and Brevard. Construction also will begin on an underground parking deck with an entrance on East Ninth Street.

Crews also will begin work on a new section of 10th Street and on Market Street, a new street that will run parallel to the proposed light-rail extension.

The area closer to Seventh Street and ImaginOn will have features for children, including two fountains where they can play in the water. That side of the park also will have a lawn that can seat about 4,000 people for concerts or other activities.

Most of the park north of Eighth will be built above the underground parking deck. The proximity to UNC Charlotte's classrooms led to a design for a more serene space, with a reflecting pond.

The Art Of Short Sales

I was fortunate enough to be featured in an article in the April edition of Charlotte Magazine concerning Short Sales.

These type of sales are becoming more common as some owners are faced with declining values, and a need to stop the debt burden. Short Sales have a reputation of being diffuclue and time consuming, but I have found that understanding the requirements of the financial institution, and patience in organizing and dissemination the necessary documentation is the key.

New High End Development To Hit The Market

For many years, it was just known as the Clock Tower, the empty space between the two hotels in the Second Ward. Slowly, the space in the middle was developed into 26high end condos, noted for their attention to detail.

The developer will be bringing these units to market shortly, and with only 26 units in the building, they will immediately make an impact on the market.

Thanks for the notice!

I was interviewed a while ago for the March issue of the Charlotte Magazine regarding a "Short Sale" that I conducted in 400 North Church Street. The article contains most of the details. The important thing here is that these "Short Sales" are becoming an important part of the current real estate environment.

Since that sale, I have become involved in several other opportunities to do "Short Sales" and have become the defacto subject matter expert at Center City Realty.

This is a changing market, and flexibility is key in being successful either as a buyer, seller, or realtor.

Is Your Agent Working In YOUR Best Interest?

There is a real estate firm town (not Center City Realty) that, as a policy, pays its’ agents more per transaction if they sell one of the firms own transactions. In some cases, the agent may receive twice as much if they sell one of the firm’s listings than if they were to sell one of a Keller Williams agent as an example. As a buyer, this should concern you as it does me.

As a buyer, I would be concerned the agent I just hired may only show the listings that benefit them financially the most instead of the best options to fit my needs. Maybe they are showing all the listings but being more persuasive towards the ones that pay more over others.

During the home search phase of the buying process, the agent’s role is to provide perspective and information to assist the buyer in making their own decision. As a home buyer looking to hire a real estate agent, ask them directly if they there are properties that they are being incentivised to show and sell you.

As a matter of practice, when a "realtor bonus" is being offered, I forward that to the buyer.

What do you think?