NEWSMAKERS BREAKFAST | By Mark Washburn
Oct. 21. Lake Norman’s white-hot residential real estate market has cooled a couple degrees, but the region remains one of the most vibrant in the nation, two industry executives said at the Newsmakers Breakfast in September.
Champ Claris, managing broker at Premier Sotheby’s International in Lake Norman, and Gary Scott, president of Allen Tate Cos., said the area far outperforms national averages in demand for housing.
“North Carolina and South Carolina are the two envy states,” Scott said. “Across the country, people wake up and want to move here.”
Recent months have seen some cooling, but demand remains strong around Lake Norman, said Claris. There are about 50 percent more properties listed now than in 2023 and about a quarter of homes priced above $1 million have had a price reduction.
Nationally, homes sell on average in about 4 months, but around Lake Norman that average is about 10 weeks.
“We are the belle of the ball,” Claris said. “Everyone wants to be here.”
Their comments came only hours before the NY Post published an article saying the booming region is seeing skyrocketing luxury sales because Lake Norman’s waterfront property is considered a huge bargain by buyers from elsewhere, including international clients.
Rules changing
Scott said that the industry is still working out procedures now that a legal settlement with the National Association of Realtors has altered long-time policy on how agents are compensated.
In settling an antitrust action this year, NAR agreed to pay $418 million and make sweeping changes to how commissions are handled and no longer require the seller to pay them.
Under the new rules, buyers must sign exclusive contracts with agents at the start of their relationship, even before touring any homes. And because sellers are no longer obligated to cover agent fees at closing, negotiation is required beforehand.
This is expected to shrink commissions and, at least in the short term, lower sales prices.
For example, in a $500,000 transaction, the seller would have traditionally spent up to $30,000 covering agent fees. If those fees fell 30 percent in contract negotiations, the same seller would face commission fees of about $21,000.
Target commission fees can no longer be advertised on multiple listings sites, per the agreement.
Scott said that he thinks the requirements contained in the settlement will raise the integrity and professionalism of the industry. It will make agents explain to their clients how important – and valuable – are the services they provide.
While some compression of commissions may occur, the overall impact should improve services and values, Scott said.
“It will just be a different way to do business,” he said. “Great teams, great agents prosper in stress.”
Fraud warning
Claris said one hazard facing the industry is wire fraud. He said agents must be diligent to ensure that deposits are sent to the correct recipient and not clever hackers who insert themselves into the process.
“We have seen some serious issues of up to $1 million,” he said.
Scott said it was vital not to click on suspicious email links. Such a mistake in his company, the largest privately held real estate firm in the nation, was believed to be related to a ransom-ware seizure of the Tate computer system that led to a three-week shutdown.
Claris recommended that buyers and sellers create a new email box that is used purely for communications about the transaction to evade hackers.
Scott offered a tip to homeowners that has long-term benefits: Do an annual project to upgrade the property, and enjoy it over time. “Don’t wait until you’re ready to sell,” he said.
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