Vue Charlotte Post-Election Meanderings

In this post, I’ll share a few miscellaneous thoughts about what I am hearing as well as some tidbits from the lawsuit of Churchill Marketing versus the Vue.

First, I think the “big sale” closed this Thursday. It is unconfirmed. I would love for our readers to weigh in on this and if it didn’t close, then when will it happen? And what floor is it? What unit? It has to be high up, and it has to be a premium unit. Please, our readers want to know the scoop!

I’m also hearing there is lots of sales interest in the building. Lots of showings, busy sales team, all very good news. I can tell you a couple of weeks back this was not the case. I am purely speculating, but if I were MCL, I would be doing everything I could to sell units to new buyers (not pre-sales) at prices “discounted” from current published prices but higher than pre-sales buyers’ prices. This would bring the comps up, and would open the door for the pre-sales buyers to start closing on their units. I hear from all sides of the sales spectrum, from those that can’t, won’t, and want to. But I don’t know of anyone that doesn’t want to see what others do before they have to do something. The ideal scenario is that these “others” be non-presales buyers that visit the Vue, love it, and contract for it. That is what I think we may have gotten yesterday. Again, this would be huge for the Vue Charlotte.

Now, I did get some feedback that I shouldn’t display so much cheerleading for this buyer that unknowingly is overpaying for his unit by a significant percentage. Here is the mail I received:

Why do you say in your first paragraph that “I hope this “heard on the street” rumor is correct! ” about the $1 million closing?  And in your last paragraph “I hope it happens, I really do. And if this high-end unit does close at contract, the Vue Sales team and the Vue Charlotte project would get a huge boost.”

We know for a fact these condos are way overpriced.  To root for people to close on them, and for the Vue to get more closings, is bad for the remainder of the owners and for that matter for the people who closed on their units.

My “vue” is that you shouldn’t be encouraging this….you should be more neutral….

Fair enough. I’ll post all sides of the issue and let the readers decide. My goal here is to express my opinions; let others express theirs; and we all can make our own decisions based upon our specific situations. Once again, I want to thank this reader for sharing their thoughts. Loyal readers of this blog know by now I tend to get overly excited, swing from positive to negative within hours, and have a tendency to lean on glasses of wine to get through the day. I doubt any of these behaviors will change anytime soon!

Now, a bit about the lawsuit. Churchill Marketing, Inc. says they sold 178 contracts between April 2007 and August 2007. From what I can tell, the agreement called for Churchill to sell 203 contracts between April and August. Because they only sold 178, MCL terminated the contract. From what I can see, there is no dispute on either side that they had the right to do so per the contract.

What was in dispute was whether Churchill was owed commissions on these 178 sales. The exclusive sales agreement says they are owed 4.5% commissions on these 178 contracts. MCL came back and said no. Their main reason for not paying was that Churchill “was not a licensed real estate broker and did not maintain a relationship with a licensed real estate broker.” Their further argument was that it is illegal for a developer to pay real estate sales commissions to an unlicensed broker. There was another disputed issue but I think this was their main argument.

I am currently unsure as to what the state of this lawsuit is. I think it is fair to say that Churchill lost round 1 but I don’t know if is over completely or not. As I find out the current state, I will share it with you.

For now though, this is just a side story to keep things interesting. It really doesn’t impact us one way or the other I don’t think.

We are once again going to take the weekend off. It is getting cooler outside, and the leaves are piling up. In other words, my instructions are to do less typing and more raking!

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2 Responses to Vue Charlotte Post-Election Meanderings

  1. CharlotteJW says:

    So the key issue here with your hope that you get new buyers coming in to buy below current prices but above pre-sales prices is that the market is just not there.
    1.) New buyers would still have to get appraisals (we know where those are coming out).
    2.) At this point there is no mortgage availability unless you are putting down a massive deposit.
    3.) All a new buyer would have to do is google “Vue Charlotte” and get the observer and other articles.
    4.) Can you imagine a real estate agent in good faith selling someone on the Vue at above pre-sales prices?
    5.) How many primarily cash buyers with limited knowledge of the uptown Charlotte market looking to spend $400-500 per square foot are there? This is a pretty niche market and you would think your best bet would be international buyers with the decline of the dollar, but Charlotte is not a good city for that (Miami, NYC, San Fran)

    My conclusion from those and a myriad of other reasons; the higher sales traffic (if that is in fact the case, which I have reason to believe or doubt) is not from people looking to buy at anywhere near current prices. They could be looking in the expectation that prices will far further, it could be a shift in the focus of the developer as he was focusing on closing pre-sales buyers and that is not working out. The developer could be trying to get a set of buyers that are interested in the propety in the event of a significant price drop. The lenders to the property may be exerting their influence, a lot of possibilities.

    I would like the Vue to work… but hoping to sell people at inflated values just asks for foreclosure issues down the line as the market will eventually correct, that would be a bandaid at best. The only real solution here is that the developer gets people in at current market prices. How he does that and whether he drops the prices for people with existing contracts or chooses to sue people to close in up in the air. I like to think of myself as an unbiased opinion, but there is NO WAY any material number of people are going to buy at above pre-sales prices when the developer despite his best efforts can’t get depositors to close at a lower price with a significant stake on the line and potential legal liability, not happening.

  2. hopfull neighbor says:

    if the churchill group feels slighted, maybe they will reveal/confirm their sales tactics. And confirm that they don’t buyers that they would just lose their deposits if they did not buy. I was under the impression that they were real estate sales agents. Despite the legal disclaimers in the contract, that must have some value.

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