Pros and Cons of Living in Cornelius, NC

Pros and Cons of Living in Cornelius, NC

by | Nov 27, 2024 | Moving to Charlotte NC

Pros and Cons of living in Cornelius, NC

1. Location

2. Lifestyle

3. Lake Norman

1. Traffic

2. Cost of Living

3. Housing Inventory

Pros of living in Cornelius, NC

1. The Location  – Nestled just north of Charlotte, Cornelius offers a strategic location that blends small-town tranquility with big-city accessibility. Imagine enjoying a peaceful evening in your charming neighborhood, knowing that the vibrant cultural scene, diverse employment opportunities, and bustling energy of Charlotte are just a short drive away. This prime location provides the best of both worlds: a serene escape from the urban hustle while remaining connected to the pulse of a major metropolitan area. Plus, with convenient access to Charlotte Douglas International Airport, exploring the world or welcoming visiting friends and family is a breeze.

 

2. The Lifestyle – Cornelius offers a lifestyle that perfectly balances small-town charm with big-city convenience. Picture this: peaceful neighborhoods where you can stroll tree-lined streets, a thriving local community with events and festivals throughout the year, and top-rated schools for families with children. Yet, just beyond the town’s borders lies the bustling metropolis of Charlotte, providing access to a world of opportunities, entertainment, and cultural experiences. It’s the ideal blend for those seeking a relaxed pace of life without sacrificing the perks of a major urban center.

 

3. Lake Norman  – Imagine a life where every day feels like a vacation. Wake up to breathtaking waterfront views, spend your weekends boating, kayaking, or paddleboarding, and enjoy stunning sunsets over the water. This is the reality of living in Cornelius, where you have unparalleled access to all the recreational opportunities of a sprawling, picturesque lake. Whether you’re an avid angler, a watersport enthusiast, or simply enjoy relaxing by the shore, life here offers a unique connection to nature and a constant source of adventure and tranquility.

Cons of Living in Cornelius, NC

1. Traffic – While Cornelius offers a peaceful retreat from the city, be prepared to navigate the challenges of rush hour. As a growing community with close ties to Charlotte, commuting to and from work can become a daily test of patience. Picture this: sitting in creeping traffic on I-77, watching the minutes tick by as you long for the tranquility of your Cornelius home. While alternative routes and flexible work schedules can help mitigate the frustration, it’s an unavoidable reality of life in this otherwise idyllic town. So, if you’re considering a move to Cornelius, factor in the potential for traffic congestion and plan your commute accordingly.

 

2. Cost of Living – Paradise comes at a price. While Cornelius offers a highly desirable lifestyle, it’s important to be prepared for the financial implications. The cost of living, particularly housing, can be significantly higher than in surrounding areas. This charming town’s popularity and prime location have driven up property values, making it a considerable investment to call Cornelius home. From everyday expenses to long-term financial planning, be prepared for a budget that reflects the premium placed on this sought-after community.

 

3. Housing Inventory – Finding your dream home in Cornelius can be a bit of a challenge. The town’s desirable location and thriving community mean that houses tend to get snatched up quickly. Be prepared for a competitive market where desirable properties may require swift action. You might also find that the inventory leans towards larger, more expensive homes, making it tricky for first-time buyers or those seeking smaller, more affordable options. Patience and a proactive approach are key in navigating the Cornelius housing market.

Cornelius, NC: Is This Lake Norman Town Calling Your Name?

Ultimately, the decision of whether or not to live in Cornelius is a personal one. Carefully consider your priorities and lifestyle preferences. Do your research, visit the town, and talk to residents to get a true feel for the community. If you're seeking a tranquil lakeside escape with a strong sense of community and excellent schools, Cornelius might just be the perfect place to call home. But if bustling city life and a diverse cultural scene are more your speed, you might find yourself happier elsewhere. No matter your decision, we hope this blog post has provided valuable insights to help you on your journey to finding the perfect place to live.

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Top 5 Mistakes of Charlotte North Carolina Homebuyers [Buyers Remorse]

Top 5 Mistakes of Charlotte North Carolina Homebuyers [Buyers Remorse]

by | Jun 1, 2023 | Blogs and Tips

We’ve all been there, scrolling through Instagram or Facebook and an advertisement pops up and what do you do? An impulse purchase, and you end up regretting it and feeling buyers remorse. We all can probably live with that on a smaller purchase, but if we buy a house and have buyers remorse, that is a whole other ball game. 

A study by Homelight, conducted in 2022 found that more than 70% of people who purchased homes (between 2020-2022 in the United States) had at least 1 regret about their home purchase. In this video and article we will review the top 5 regrets these buyers felt about their home purchase. We’ll also give you some ideas on ways to keep from having those same regrets when you go to buy a home.  

 

A study by Homelight, conducted in 2022 found that more than 70% of people who purchased homes (between 2020-2022 in the United States) had at least 1 regret about their home purchase. In this video and article we will review the top 5 regrets these buyers felt about their home purchase. We’ll also give you some ideas on ways to keep from having those same regrets when you go to buy a home. Here’s the top 5 regrets: 

 

  1. I feel that I overpaid for my home.

  2. I under estimated how much maintenance a home requires.

  3. I feel that I decided which home to buy too quickly.

  4. I under estimated the total cost of owning a home.

  5. I wish the layout of the home was more conducive to my lifestyle.

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1. I feel that I overpaid for my home

Once rates went up, around the middle of 2022, prices began to fall. In January, the average home price fell by 16% since the peak of June 2022. This data could make people second guess their recent home purchase, even if they secured a 2.5-3.5% mortgage rate. However, over the long run home prices tend to rebound and increase.  Since January home prices have rebounded and have passed the peak of 2022. As of May 2023, the average home price in the Charlotte area has increased 11% from the average home price in May 2022. Warren Buffet always says, “Time in the market always beats timing the market.” 

 

 

How to avoid overpaying for a home:

 

So how do you prevent overpaying for a home? Well first of all make sure you have an agent who understands the real estate market. Does the realtor that you’re working with have a deep understanding of the housing market and overall economy? Are they able to properly identify acceptable home price? Does your realtor shoot educational videos and blogs like this one? Do they take time to educate the public on the market?  Do they take time to educate you? 

It’s important to have an expert that keeps a close eye on the pulse of the market. An agent who does a lot of business will have a better, more realistic picture of the overall market. Your realtor should be able to advise you properly, to make sure you’re not overpaying for a home. No one can know for sure if the market will go up or go down, however there are many leading indicators that you can pay close attention to that will help you make an educated decision on what to offer on your dream home.

 

If you’re curious if now is, in fact, the right time for you to purchase a home, then you’re in luck! We put together an entire blog/video answering that very question: 

 

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Is NOW a good time to buy a house in Charlotte? Or WAIT for the bottom?

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 Prices and rates are high and you want to make sure you don’t stretch yourself too much to where you become house poor. You don’t want to be living on canned food and ramen noodles just to get into a home.  

 

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2. I under estimated how much Maintenance a home requires.

If you’ve never owned a home before you may not understand the cost of maintaining a home. There’s a lot that goes into keeping a home up. Here’s just a few things you may need to budget for:

      1. Lawn care
      2. Cosmetic items like paint and flooring
      3. Minor repairs like a leaky toilet or replacing a lightbulb
      4. Major repairs like replacing a roof or HVAC unit

There’s no more calling the landlord anymore, these repairs would fall on you to take care of. These items can add up quickly and end up costing you an arm and a leg! After doing a little research, we were able to find that many experts say that you should budget, on average, about 1% of the value of your home for yearly repairs. So for a $500,000 home, you would want to budget $5,000 a year.

Of course it depends on the age of the home and the age of different components like the HVAC, roof, and water heater. On a $500,000 home, this means you would want to save about $416 a month for any possible issues or repairs. You would want to have this as a budgeted item and set that money aside for a rainy day (possibly quite literally).

How to avoid being surprised with costly repairs: 

 

There’s a ton of research you can, prior to closing on your new home, to fully understand a homes condition. Even if you’re buying a brand new home, we always recommend hiring a licensed home inspector to inspect the home. You can also obtain a termite inspection, well/septic inspection, pool inspection, radon inspection, mold inspection, HVAC inspection, etc. The more research you do prior to the home closing, the better prepared you will be for the future. Getting a licensed professional to inspect the home is also a great way to identify any major issues with the home. Major issues can affect the homes overall value, and its good to know these items up front. 

Also, even if the HVAC works and there are no leaks in the roof, know the average life expectancy is around 15-20 years. So if the HVAC or roof is around 15-17 years old, you may want to budget a bit more to eventually replace them.  

Spending a little bit extra money up front and doing a little research can save you tens of thousands of dollars down the line. It will also help you create your monthly repair budget !

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3. I feel that I decided which home to buy too quickly.

Keep in mind, this survey was completed in February 2022, looking back 2 years prior.  This was when the market was crazy, multiple offers were the norm. It was more likely a home was in a very competitive “highest and best” multiple offer scenario than not.  Buyers were rushing to buy and lock in their mortgage rate before they rose. This euphoria forced many buyers to make quick decisions.  

Now fast forward to today, what can you do to make sure you don’t have to make a quick/hasty decision? 

How to avoid feeling pressured into making a quick decision: 

If you’re looking for a home in a highly desirable area, the area with good schools, anywhere from $400,000 to $1,000,000 than you may still experience a multiple offer situation, where you still may have to make a quick decision. Especially, if it is a very nice, well kept, and renovated home. 

This is why it’s important to take some time, before you even look at homes, and put together a thorough needs vs. wants list (see step #5). If you know exactly what you need in a home, before you begin your home search, you will be able to quickly identify if a home fits your needs. So when you find yourself in a pressured, competitive, situation you know that the home will fit you and your families needs!

Recently, we’ve seen many buyers experience “sticker shock” when they begin their home search. They thought they could have all of the things they want for $750,000. But, after seeing the market and prices, their expectations didn’t meet reality. So, when this happens, its important to re-adjust your expectations to fit in your budget. This will help you make sure you don’t make a decision you regret and put you and your family into a difficult financial position. 

Now, there are many properties in this market that will not have a immense amount of competition from home buyers. In these cases, you may not be in a bidding war with other buyers. You may find less competition if you’re looking for a property a bit further outside the Charlotte, North Carolina area, maybe a place that doesn’t have the best schools. You will find less competition on the homes that need a little work or are a bit outdated. These homes may not be high pressure situations, which means you don’t have to make a quick decision. You may have more options and a day or two to sleep on it, or even a 2nd showing.  

 

I often tell my clients: “If you find that perfect home and you sleep on it, you may not sleep in it.” Which is true, you never know when another offer is coming in. But, I definitely don’t want you to sleep in it for the next 5-10 years and be unhappy. So make sure you know what you’re looking for and be okay with saying NO.

 

4. I underestimated the total cost of owning a home. 

Owning a home can be costly! You aren’t just responsible for the mortgage payment, there’s other requirements involved. You’re also responsible for property taxes, insurance, and other fees. You have to pay property taxes, no matter what. In Mecklenburg county, where we help many buyers and sellers, the property tax is 61.69 cents per $100 of the homes tax value. If you’re looking in South Carolina there are two different tax rates, one for primary occupants and one for non primary occupants. This small difference can make a HUGE difference in your property tax obligation. These are things you want to make sure you understand prior to purchasing the home.

 

If you have a mortgage, your property taxes will be escrowed. Your mortgage lender will take a small amount every month to pay your taxes and homeowners insurance on your behalf once a year. If this is the case you don’t have to budget for these, they will be included in your mortgage. 

When you’re shopping for homeowners insurance you should do your homework. The #1 mistake I see homebuyers make is that they don’t talk to a professional insurance agent right from the start. Right when your offer is accepted you should begin talking to homeowners insurance representatives. This will give you time to make sure there are no historical losses or claims that have never been fixed. You’ll also have more time to obtain a better idea of what type of insurance is best for you to cover those emergencies. This is very important in case anything happens, you’ll have the right insurance to cover it.

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5. I wish the layout of the home was more conducive to my lifestyle.

You finally get into your new house, get settled in, and a couple months later you  realize that something’s just not right. The home just doesn’t have the space you need to accommodate your lifestyle. This can easily be a home buyers worst nightmare. How do you prevent this from happening?

When first meeting with our clients we take much more time up front to help our clients identify what’s truly important to them in a home. We always recommend our client take time to complete a needs vs. wants exercise. This helps them put whats most important into perspective.  

 

Needs vs. Wants exercise: 

So what’s the needs vs. wants exercise? Its very simple! You take a white sheet of paper; at the very top of the left side you write “Needs,” and at the very top of the right side you write “Wants.” I always recommend each spouse completes this exercise separately. Once complete you can come back together and compare notes. This will help get both peoples opinions and discover whats most important. 

 

So, what are wants and what are needs? 

Needs:

Needs are MUST have’s. These items that, if not present, you won’t even look at the home. For example, if you have to have a 4 bedroom due to a certain # of children or you work from home and you need a home office. If this is the case, share this with your agent and tell them to not show you anything with less than 4 bedrooms. 

Or, if you need a primary on the main level due to health concerns then you can eliminate any home that doesn’t have a primary on the main level. 

The needs list should be pretty short, the wants list can be longer. 

Wants:

Wants are fun! This can be used as your wish list. Wants are items that you don’t absolutely need, but if it was in a home it would be a plus!

Many times we have clients say they want a primary on the main level. Then we start looking at homes and find that, in their price range,  we’re not finding any home that they like with a primary on the main level. If this is in the wants column, we know we can start looking at other homes with a primary bedroom upstairs. 

You can have as long of a wants as you’d like!

 

 

Spending a little bit more time upfront and doing your homework will give you a MUCH better idea on what you absolutely have to have in a home to make you happy. It will also help you identify items you’d like to have in a home. Once you have completed your needs vs. wants list, make sure to share this list with your realtor!

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It’s disturbing to me that over 70% of people over the last 2 years have regrets on their home purchase. Everyone on our team’s #1 goal is to make sure that when you purchase your home there’s absolutely no regrets. We make sure that when you move in you guys are extremely happy with your home! Our team is dedicated to making this happen, so feel free to reach out to us. We would love to give you a consultation on the overall process.  

If you’re one of those 70% of home buyers who regret their home purchase in the past couple of years, feel free to also reach out. We would be happy to discuss your options and how to put you and your family in a better, happier, position. Feel free to call, text, or email us today: 

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Mecklenburg County Property Tax Revaluation: Tax Relief Options

Mecklenburg County Property Tax Revaluation: Tax Relief Options

by | Apr 4, 2023 | Home Ownership Education, Uncategorized

Recently, Mecklenburg County announced its property tax revaluation, a process that occurs every eight years to ensure that property values are up-to-date and fair. The revaluation process, which began in 2021, determines the assessed value of every property in the county based on a variety of factors, including recent sales, property improvements, and other market trends.

As a result of the revaluation, some property owners in Mecklenburg County may experience an increase in their property taxes. The county government has taken steps to make this process as transparent as possible, providing property owners with information on how their assessments were calculated and offering opportunities for appeals.

 

However, for those who may experience an increase in their property taxes, the county has also introduced several tax relief options to help alleviate the financial burden. These include property tax exemptions for seniors, the disabled, and veterans, as well as programs that provide assistance to those who are struggling to pay their property taxes. Please see below for a list of the different tax relief options:

 

Mecklenburg County Property Tax Relief Resource

Elderly and disabled residents can receive up to $25,000 or 50%, whichever is greater, off their taxes. Those interested can apply between January and June each year by calling 980-314-4226.

Elderly and disabled tax relief requirements include:

  • The applicant’s name must be on the deed or title to the property.
  • The property must be the applicant’s primary residence.
  • The applicant must live in North Carolina.
  • The applicant must be at least 65 or have a disability that “substantially hinders a person from obtaining gainful employment.”

  • If claiming a disability, the applicant must provide proof of the disability from a North Carolina physician or a government agency.

  • The applicant’s household income must be below $31,900, based on 2021 income. The Mecklenburg Board of County Commissioners is working to make this income restriction higher so more people can qualify, Joyner said.

Disabled veterans in North Carolina can receive up to $45,000 off their property taxes. Those interested in applying must fill out a form on milvets.nc.gov.

Disabled Veterans Homestead Exemption requirements include:

  • The deed or title must be in the applicant’s name as of Jan. 1.
  • The applicant must live in North Carolina

  • The applicant must be a disabled, honorably discharged veteran or receive benefits for specially adapted housing under 38 U.S. Code 2101.

 

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The Helping Out Mecklenburg County homeowners with Economic Support (HOMES) program helps low to moderate-income homeowners get up to $340 off their property tax bill. Those interested can apply at mecknc.gov/4Homes.

HOMES program requirements include:

  • The applicant’s name must be on the deed, title or on a life estate of the property. A life estate is a legal way to pass the ownership rights of your home to another person after death.
  • The property must be in Mecklenburg County.
  • The property must be the applicant’s primary residence at the time of application and consistently for the past three years.
  • The applicant’s household must make less than 80% of Mecklenburg County’s area median income, or less than $67,000 for a family of four according to data from local affordable housing developer DreamKey Partners.

Certainly, it is vital for property owners to stay updated with the property tax revaluation process in Mecklenburg County. The county’s tax relief options, such as property tax exemptions, assistance programs, and deferral programs, provide crucial support for homeowners who may face financial challenges. By taking advantage of these resources and staying informed about the property tax revaluation process, property owners can make informed decisions about their properties and finances. Overall, this process ensures that property values are fair and transparent, benefiting the community as a whole.

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Selling your home: How much does it cost to sell a house? In North Carolina (2023 Update)

Selling your home: How much does it cost to sell a house? In North Carolina (2023 Update)

by | Dec 27, 2022 | Home Ownership Education, Selling My House

How much does it cost to sell a house?  When selling a house, the sale price does NOT necessarily mean that’s what you’re putting in your pocket. 💰 Let’s talk about the REAL cost of selling your home.

How Much Does It ACTUALLY Cost To Sell Your House? 

If you’re considering selling your home, listen up! In this comprehensive video + Blog, you’ll learn about all the specific costs involved in selling your house, including real estate agent commissions, closing costs, transfer taxes, escrow fees, title insurance, HOA fee’s and more.

With this blog + video’s accurate information and useful home selling tips in your arsenal, you can be better prepared when it comes time to sell your home. Closing costs for sellers might be higher than you think, so it is important to be prepared and budget for these expenses.

Every home sale is different but these are the typical things a seller pays for when selling a house. Some of these expenses will apply to you, and other’s may not. It really boils down to your timing and your specific scenario. Here’s a rundown of typical seller costs, and about how much they will run you:

1. Costs BEFORE you list your home

2.  Home Repairs 

3. Realtor Fee’s

4. Seller Concessions

5.  Closing Cost’s

6. Home Warranty

7. HOA Fees

8. Mortgage Expenses 

9. Moving Costs

10. Temporary Accommodations 

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Cost Before You List

1. The Costs before you list

Did you know that some of the expenses that you will incur as a home seller will actually occur before you actually list your home for sale. The reason is, you will need to prep your home, if you want to get TOP DOLLAR for your home. The first impression a buyer has of your home really matters. You want to make sure your home has that “WOW” factor. 

The goal is to make it shine inside and out! Here are a few tips:

1. Hire a professional cleaner, or deep clean your home: Make sure to work this in your budget. Remember, the price will vary based on your houses square feet along with how much work it needs 

2. Curb appeal: You want to make sure your home has a very strong curb appeal. After all, this is the buyers first impression of your home. So, you want to make sure you spend a bit of time and money ensuring your home looks as good as possible.

3.  Possible repairs: You want to budget for any potential repairs that you have possibly been putting off. The repairs that you know you really need to do before putting the home on the market. Even a few affordable ways to boost your property’s appeal, like cleaning the windows and touching up the walls, baseboards, and trim around the home. This might be better than selling your home as-is.

Possible Renovations to Maximize Your Profit

Before you sell, you might be tempted to complete a project that seems likely to increase the value in a buyer’s eyes. Some renovations can recoup the majority of their value when it’s time to sell. Click the link above to see the 6 renovations that will INSTANTLY increase your home’s value.

Please note, one of the most common mistakes I see from home sellers is spending money on the wrong improvements before getting a Realtor involved. We always recommend consulting with your trusted Realtor before completing any renovations (for the sake of selling). 

How To Best Prepare Your Home To Maximize Your Profit

If you are interested in learning more how to best prepare your home to hit the market, we have put together a video on the *10 most important steps to prepare your home for the market. *  Click the link and learn how to best prepare your home for sale!

Also, feel free to click here, to download our FREE Home Seller Prep Guide! This guide will make sure you are fully prepared to hit the market.  

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Repairs to your home

 2. Home Repairs 

I know you’re saying, “Hey, you already mentioned repairs before listing the home.” The fact is depending on the market conditions, your home’s condition, the buyers inspection report, and negotiations you may be looking at completing a few more repairs before closing as well.

Home Inspection 

If the buyer’s home inspection uncovers big issues, such as a damaged roof or bad plumbing leaks, you might have to pay to fix them in order to close the deal. You may also be able to cut the buyer a check to cover the repairs, rather than completing them. Big repairs can set you back financially, so be prepared before you decide to sell, especially if you anticipate trouble along these lines. The older your home is, the more likely there may be hidden defects, or issues with the home. 

Your trusted Realtor will be able to help advise you on how to negotiate any requested repairs, and what’s typical in your market.  

Realtor fees

3. Realtor Fee’s

Typically, the seller is responsible for paying the Realtor’s fee whenever selling a home. This includes the listing agent (representing the seller) and the buyer agent (representing the buyer). Each real estate agent is responsible for setting their own fee’s, so this can vary based on the agent you choose to work with. 

Before choosing an agent you really want to make sure you know what their realtor fee is and what exactly you can expect them to do for that fee.  

How To Choose The Right Agent

Not all Realtor’s are created equal, every individual agent has their own process, marketing plan, and success rate. Choosing the wrong agent could lead you to leaving tens of thousands of dollars on the table. We always recommend interviewing at least 3 real estate agents, to ensure you have enough information, viewpoints, and data to choose the right agent. 

If you are considering selling your home, make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions:  10 Questions You Must Ask Your Realtor Before Hiring Them. 

Cost of selling a house. Seller Concessions

Find out how much your house is worth!

4. Seller Concessions 

Buyer’s sometimes request concessions from the seller, which essentially means that you help cover the buyer’s closing costs. For example, you might agree to contribute a portion of your sales price towards appraisal, title insurance, and origination fee. This is paid out of the seller proceeds at closing and will depend on the negotiations between the buyer, seller, and Realtor’s involved, along with the state of the real estate market.

It All Comes Down To Negotiation

You definitely don’t have to agree to this. Especially if your area is a seller’s market. If it’s a buyer’s market, seller concessions can help make a difference in getting a deal to the finish line. Also, even if you’re willing to make concessions, there are limits based on the type of mortgage your buyer is using and how much they are contributing for a down payment.

Cost of selling a house. Closing costs

5. Closing Cost’s

These are the fee’s that the seller will see whenever selling a home. Closing costs can vary based on the state you are selling a home in. Here in the Carolina’s you can expect a few fees:

1. Attorney Fee: The buyer and seller will both have an attorney fee. They can choose to use the same closing attorney or choose separate closing attorney’s. Attorney fees will vary based on your location and the attorney you choose. The seller fee, in the greater Charlotte area, is typically around $400 to $500.

2. Pro-Rated Taxes: Property taxes are paid in the arrears (meaning you pay for the property tax for the current year at the end of the year). At closing, the attorneys will pro-rate the property tax owed, the seller will pay a portion of the property taxes, based on how long they owned the home that calendar year. This can show up in a few different ways, based on what time of year you close and if you have already paid the property taxes. The county usually sends out the tax bill around August, however, it is not due until the end of December. 

              • If you are closing before August (or before the current year’s tax bill has been released), then the closing attorneys will use the previous year’s tax bill to estimate what this years taxes due will be. In this case, at closing the seller will pay the buyer directly for their portion of taxes. The buyer will then be responsible for the entire tax bill at the end of the year (when it is released).
              • If you are closing after August (or after the current year’s tax bill has been released) then the closing attorney’s will use the current tax bill to pro-rate taxes. If you are closing after August and the taxes have not yet been paid, then you will credit the buyer for the portion of property taxes you owe. If they have been paid for, then the buyer will credit you back for the portion of property tax they would owe for the rest of the year (where they will be the owner).

3. Recording Fee: The seller will pay to record the deed with the state. This is usually $40-55.

4. Deed Stamps/ Excise tax: We all know that Uncle Sam has to get his slice of the pie. There is usually some sort of tax levied on the seller whenever selling a home.  The amount, and what it’s called, is determined on the state you are selling your house in. 

              • North Carolina: If you are selling a home in North Carolina, it’s called Excise tax. You will owe $1 for every $500 your home sells for. This is due out of the seller proceeds at closing 
              • South Carolina: If you are selling a home in South Carolina, it’s called State Deed Stamps. You will owe $3.70 for every $1000 your home sells for. This is due out of the seller proceeds at closing. 

How To Estimate Your Closing Cost Estimate

You want to make sure you budget the costs above as well. The “rule of thumb” is to budget 1% of your sales price for the sellers closing costs. Whenever you meet with your trusted real estate agent, they will be able to complete an estimated seller net sheet, to make sure you know exactly what to expect. 

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Cost of selling a house. Home warranty

6. Home warranty

In some cases, you may find a buyer is requesting for you to pay for a home warranty. This protects the buyer, after closing, for any large expenses, systems, and appliances. This is 100% negotiable and will be determined by both the seller the buyer and the real estate agent. The market conditions in your area can be a large factor in this as well.  

Cost of a Home Warranty

The cost of a home warranty can vary on the level of protection, the size of the home, and the amount of items the buyer is requesting to be covered (i.e pools, etc). The annual premium for a home warranty in North Carolina averages $588 for a single family home, according to Review Home Warranties. 

 

Cost of selling a house. HOA fees

7. HOA Fees

Do you live in a community that has a HOA that empose’s fees whenever selling a property?  If so, be sure to understand the costs and add them to your budget. These fee’s can include:

1. Capital Improvement fees: Capital Improvements Fee means that one time, nonrefundable fee which may be used by home owners for the community to fund community refurbishment costs, capital improvements and/or capital reserves.

2. HOA transfer Fees: The HOA transfer fee covers all costs that the HOA will incur when transferring the ownership records from the seller to the buyer. These are charges associated with preparing and distributing documents, updating names in databases, changing security codes and amenities passes, and other administrative costs.

3. Document Prep Fees: Attorneys need to acquire certain documents from the HOA before closing, and some HOA’s charge the seller to send these documents to the attorney.  

If you have any outstanding fine’s or HOA dues, you will also need to budget for those. The closing attorney will be able to gather this information through the closing process.  However, if you do not know whether or not your HOA has any fee’s on selling a property, its easy to find out! All you have to do is contact your HOA community manager, and they will be able to help you identify any possible fees.

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Cost of selling a house. Mortgage Expenses

8. Mortgage Expenses 

 

Now, we all know we have to pay the lender back. All liens on the property will need to be paid off at closing. You want to make sure you read your mortgage documents carefully to identify any hidden fees:

        • Prepayment penalty  Although less common, some mortgage loans may include a prepayment penalty. A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. If you have a prepayment penalty, you would have agreed to this when you closed on your home. Not all mortgages have a prepayment penalty.
        • Accrued Interest on Mortgage – Mortgage interest is paid in arrears. You may have paid your mortgage prior to settling on the sale of your house, but interest is also due for the days between your mortgage payment due date and the closing of the sale. The title company usually includes several days of interest in your payoff summary, with any over payment refunded after closing.
        • Lien Processing fee – It takes several weeks for a lender to file the paperwork releasing the mortgage lien on your property. You may be asked to pay an additional fee if you wish to receive loan payoff documentation in a more timely manner.

If you are subject to any of these fee’s with your lender, be sure to add them to your total budget. If you are not sure if you are subject to these lender fee’s, all you have to do is call your lender and they should be able to help you identify those.

On a positive note, every month a portion of your mortgage payment goes to your escrow account to pay for your years property tax and property insurance bill. You will most likely have money left over (or an overage) in your escrow account. You usually receive the extra funds in your escrow account thirty to forty five days after closing.

Cost of selling a house Moving costs

9. Moving Costs

Don’t forget to budget for all packing and moving expenses. If you’re selling your place, you’re going to have to move all your stuff. Paying for that will set you back between $911 and $2,514, according to HomeAdvisor. However, that price tag can be a lot more if you’re moving several rooms’ worth of furniture or if you’re moving across the country.

If you want to save money on your moving costs, you can consider doing it yourself. Be honest, though. Can you manage all that heavy lifting? You might save money on the move, but you also might need to pay for a massage and take some days away from work after it, too. Here are a few expenses to keep in mind: 

        • Boxes
        • Tape
        • Trucks
        • Movers
        • Storage 
        • Rentals

You may also want to budget for all of that pizza and beer to thank your friends and family for helping you move! 

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Cost of selling a house Temporary accommodations

10. Temporary Accommodations

Do you need temporary housing for the time between selling your home and purchasing the next one? If so, then you want to make sure to budget for all of the expenses that you may see throughout the process. This includes Rents, Deposits, and utilities. Make sure to budget for those ongoing expenses for both properties. 

Regardless of where you’re moving next, most sellers typically have an overlap of about a month and a half when they’re still paying their existing mortgage, plus alternative housing costs.

Summary: 

 

Every property is different, so you’ll need to carefully consider what will impact the math on selling your house. Selling a house is exciting but it isn’t free. It’s easy to feel frustrated by all of the potential costs of selling a house. That being said, you should remember that many of these costs will actually improve the resale value of your property and help you sell your home faster. A faster sale doesn’t just save stress. It can also save you money by reducing the time that you own two properties.

Preparing your home

The bottom line is that most of the costs of selling your home are, like homeownership itself, often a wise investment. If you’re unsure about the costs that go with putting your home on the market, do your research and take a look at the  *10 most important steps to prepare your home for the market. *  Click the link and learn how to best prepare your home for sale!

If you are considering buying, selling, or investing in the greater Charlotte area, we would love to be your real estate resource of choice. Please call/ text/ or email us today:

Contact us through:

📱Call/Text Direct (704)-631-3977

📧Email: info@thefinigangroup.com

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If you are considering selling your home,  make sure you choose the best Realtor. Watch this video to make sure you are asking your potential realtor the RIGHT questions:  10 Questions You Must Ask Your Realtor Before Hiring Them. 

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South Carolina Real Estate Capital Gains Tax Explained

South Carolina Real Estate Capital Gains Tax Explained

by | Nov 18, 2022 | Home Ownership Education

The reality is that there are many tax implications when purchasing or selling real estate in South Carolina. One area where real estate investors and homeowners can sometimes find themselves afoul is the capital gains tax – a complicated subject matter, which has so far been difficult for most people to understand without professional help from someone who knows what they’re doing! However, don’t worry because we’ve laid out this guide on how you should proceed with your next investment property purchase wisely as well as understanding other potential pitfalls before it’s too late…

Before we dive in, we always recommend speaking with your accountant, CPA, or legal tax-based professional for a clear understanding of your specific situation.

Understanding Federal Capital Gains.

Capital Gains tax usually applies in one of two scenarios federally:

1. You sell real estate that is NOT considered your personal property.
2. The sale of your primary residence results in a taxable gain of $250,000+ for single filers or $500,000+ for joint filers.

Please note, some exclusions may apply. As an example, folks in the military on extended duty may elect to suspend the 5 year deadline for up to 10 years.

How to calculate a Capital Gain or Capital Loss.

The three-step process for calculating capital gains is as follows:

1. Determine your basis. This is the original purchase price plus fees plus improvements.
2. Determine your realized amount. This is the sales price minus fees (your net).
3. Determine your Gain or Loss by subtracting your realized amount from your basis.

Understanding State of South Carolina Capital Gains Tax.

If you’re looking to sell your home in South Carolina or consider buying an investment property here, it’s important to understand the state’s capital gains tax.

South Carolina’s long-term Capital Gains Tax Rate is 7% of your gain (see above to calculate this on your own). That being said, 44% of the capital gain is exempt. In other words, you’re actually paying 3.92% of your realized gain to South Carolina. In other words, if you have a gain of $100,000 then you’ll pay $3,920 in real estate capital gains tax (3.92% of $100,000).

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Can You Avoid or Prevent Capital Gains Tax?

Yes and no. Section 121 of the tax code for South Carolina allows single filers to exempt the first $250,000 gain from being subject to capital gains tax ($500,000 if you file jointly). But that’s just for primary residences.

Any sale of real estate other than your primary residence should consider a 1031 Tax-Deferred Exchange. This process allows you to “defer” paying capital gains tax by rolling your taxable gain into another, like-kind property. You can’t “eliminate” capital gains tax, but you can “put if off” by rolling your proceeds into another property.

This is not nearly as complex a scenario as people might be led to believe, but there are some details you’ll need to be aware of. The key to success is to start with the right team (Realtor, Closing Attorney, and a Qualified Intermediary) to help point you in the right direction.

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The Finigan Group
Realtor @ eXp Realty
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