New Construction in Charlotte?
Hello all,
I'm hoping to move to the Charlotte area this spring and wanted to get some opinions on my approach. My plan is to look for a SFH to house hack. Obviously, these are not very easy to come by at the moment. I'm looking for something that can make sense as an investment property, but also something I will be okay living in for a couple of years. I work from home so I would like a property that has enough space for me and my renters (maybe a 4/2 or 4/3 2000+ sq. ft.) I'm planning to use a 3% down conventional mortgage as this is what i can afford at the moment. Once (if) I find a place, I would live there for ~2 years while I pay off my student loans and get the LTV on the property to <80% so the private mortgage insurance will fall off.
So, my questions is, what is my best bet in making this work? I can't offer cash or 40k+ over asking like others can. I don't think I realistically have any leverage to win a bidding war. I've never owned a house. My realtor suggested looking at Offerpad and Opendoor as possibilities. What about new construction? I just thought of this last night, but wouldn't this eliminate the bidding war issue? It looks like you can still get a brand new house in the Charlotte suburbs for ~$200/sq.ft., which is like the same price homes are going for on the MLS. What's the catch here? Can you buy a new construction for 3% down? Do people bid on new construction like they do the MLS, or is it first-come-first-serve? Is there a waiting list for the new construction builds or are they sold out instantly? I looked on Zillow and actually see a good amount of 'new construction' homes that are 'available' in the Charlotte suburbs for under 400k. (see zillow link below). This doesn't really make sense to me though as the market is so competitive right now. How are there perfectly good new-construction builds just sitting in nice suburbs that aren't being snatched up within a day or two? I feel like I'm missing something here...
I appreciate any feedback from those in the Charlotte area, as I'm trying to wrap my head around my options here. Am I just flat-out crazy for trying to buy a SFH in Charlotte spring of 2022? Thanks again for reading and any feedback provided to this first-time homebuyer!
@Jacob O'Malley though of possibly a duplex and live in one side? Not sure how big your family is...https://www.zillow.com/homedet...
@Mike Davis Thanks for the feedback Mike. I'm definitely open to a duplex, I just didn't think I'd be able to find one in today's market. Also, it's just me and my cat at the moment so I have the ability to be flexible!
@Jacob O'Malley
The only reason new construction homes are not being grabbed so quickly is that you sometimes have to wait. I bought new construction before this red hot market and it was already ready to go. It’s all about timing. There are ones down the street ready and honestly everywhere. They are a great way to go. I would defiantly go for it and don’t totally understand it myself.
It's a good plan and doable if you're willing to submit a full offer with low contingencies before a home is completed.
If you're looking to house hack, I would look for a home that is a shorter commute to major employers (most being in Charlotte). S Gastonia is great, but probably not the most ideal for professionals looking for a room rental. Most want to be either close to work or close to entertainment amenities.
Personally, I think the area near the Whitewater Center is primed for growth and would be a good spot for house hacking.
@Jim Kittridge Thanks for the reply Jim. Like the Mt. Holly area? I see some new builds available there.
Quote from @Jacob O'Malley:There or next to it in the Charlotte side.
@Jim Kittridge Thanks for the reply Jim. Like the Mt. Holly area? I see some new builds available there.
We started looking at new construction recently. It’s a different world right now. I can tell you people are ready to pay anything and submitting ridiculous DD and earnest money just to get the properties. A recent house we wanted was through DR Horton. They told us we cannot select the elevation of the house on any lot. They preselected the house plan they would build on each lot and the elevation. They also said at this time they can’t guarantee that you will pick your cabinets, colors, tile or the normal options. They are selecting everything for you now. Also there is a 10k minimum DD. They give preference to people that go with their lender. There are people on a waiting list waiting for each house get released and the house is “auctioned” off they pick the strongest offer.
@Jacob O'Malley
Good luck with the new construction. Several builders are releasing limited number of lots with a specific home already selected, pre-selected finishes and opening it up for a bidding war. It’s not the same as it was a few years ago where you could simply pick the lot, house, finishes, and pay the selected price. I would have to imagine builders are raking in the profits.
@Jacob O'Malley not sure if you found something already. If you are open to building I have a .55 acre lot available zoned as a duplex in Dallas. Let me know if you are interested and I can send you details on it. I agree with everyone that duplex is the way to go.