Charlotte’s Strong Real Estate Market

More Signs of Charlotte’s Strong Real Estate Market

When looking at the health Charlotte area real estate market, investors flock to markets that are strong, stable, and profitable.   Charlotte has attracted many different investors for resales, flips, and the rental market.   A new study on iByers provides additional evidence that Charlotte is a great area to invest in real estate.

The Charlotte real estate market is booming among all categories, but a recent study found Charlotte to be one of the fastest-growing markets when it comes to home sales made through online platforms.  The study looked at iBuyer transactions in the Charlotte region made through Offerpad, Opendoor and Zillow.

IBuyers are real estate tech companies that buy and sell homes through online platforms. According to the study, 4.3% of homes purchased in the Charlotte market were made by iBuyers in the third quarter of 2019, ranking Charlotte No. 4 market in the country.

18 markets were included in the study, and it was determined the entire iBuyer market share was 3.1%.  Raleigh landed the No. 1 spot, where iBuyers accounted for 6.8% of home purchases. Phoenix, Atlanta and Houston all made the top 5.

iBuyers appear to be concentrating their efforts in southern markets with strong growth in sales and prices. The study found the most iBuyer activity is in markets where typical home prices were below the national median — around $312,200 in October.

In the Charlotte market, the median price of a home sold by iBuyers was $207,550, compared to the metro-wide sales price of $264,300.

When an iBuyer buys a home, the company often does repairs and renovations in order to market the property at a higher price. Most companies say they pay fair market rates when buying the home and make their profits by charging higher fees to the sellers for the convenience.

Though the iBuyer trend is a positive indicator to a strong real estate market in Charlotte, there is no replacement for a qualified, knowledgeable Realtor helping clients through the process.  Realtors assist with negotiations, multiple offer situations that can drive prices higher, and have the expertise to ensure a smooth transaction.  Fees can be quite high on the iBuyer sales side – something to consider when weighing against using a qualified Realtor to sell a home.  When purchasing an iBuyer property, Realtors can negotiate the best price for their clients, give the competitive comps for the area, manage the inspection process, and give rental rates for investors intending to lease the property, with no fee to the buyers.

Submitted by Laura Grant