CHARLOTTE, N.C. -- Last month, 13.1 percent of new listings in the Charlotte region were considered distressed, down from 22.1 percent at the same time last year. And of the ones that are for sale, it looks like banks are getting more aggressive on pricing.
One example is a recent price drop in the luxury neighborhood The Sanctuary in Southwest Charlotte.
“The Sanctuary is all about big lots,” said realtor Terry McDonald with The McDonald Group of Wilkinson & Associates Real Estate. “This is a five-acre tract here, 5.13 I think, and it is pretty level, too.”
On that lot is a more than 5,500-square foot house that once served as the community’s sales center.
“The value is pretty huge. The last market sale on this was $1,600,000 on this house that was sold to an investor,” McDonald explained.
The bank foreclosed on that investor, put the home on the market and recently reduced it to $900,000, just more than half of the property’s $1,746,000 tax value.
“For a variety of reasons, the bank kept it priced too high for too long. But we’re in a pretty unique situation. The price is where it should be now and of course, the bank will be accepting offers as well,” McDonald said.
“The house has never been lived in,” he noted from the home’s custom kitchen. There are new Viking appliances, including a six-burner stove and separate warming drawer. The home has five bedrooms, five-and-a-half baths, including the first floor master bath which has a walk-through shower the size of most walk-in closets.
There are two large garages, one with heat and air conditioning and room for two cars and a boat.
“Just another great room with wood beams and a big stone fireplace,” McDonald said walking through one of two living areas that spread across the back of the house. “This room, there just aren’t many of them until you get up into the $2,000,000 range,” he explained pointing out the high-end finishes like wood detail and beams on the ceiling.
“They would be very expensive to replace and you wouldn’t even find them in houses until you started looking in that higher price point.”
A two-and-a-half story cupola brings natural light to one of two staircases. Over one of the garages, a bonus room is sized like the average apartment.
“Just big and spacious, really,” described McDonald.
The neighborhood offers a lakeside swim and tennis club just down the road and at the reduced price, McDonald says showings have increased. “You could easily see prices double this (in the area),” he explained.
One thing this listing shows is that foreclosures run the gamut, from $30,000 fixer uppers to this Lake Wylie house, which is essentially brand new.
“If there was an area that got way overbuilt in Charlotte that might have been it. Since say 2005 and 2006 a lot more million dollar homes were built than there were million dollar buyers and unfortunately when the recession hit in the fall of ’08, the builders began finding that out,” he said. “There was a lot of inventory at that time but it is almost gone now.”