Wearable Art Luncheon, September 19, 2013

A strolling fashion show at Tommy Bahama at The Market Common benefiting the Pawleys Island Festival of Music & Art.  Thursday, 11 am to 1:30 pm; $30.  

Unique pieces from local artists, a silent auction and more.

For more information call: 843-626-8911 or go to www.pawleysmusic.com

Litchfield Real Estate Market Report July 2013

In the combined Litchfield/Pawleys Island market,

19 single family homes were sold in July 2013, a 40.6% decrease from July last year; flat year to date with 150 sold.  The median sales price in July was $327,000, up 1.9% from last year. Year to date the median sales price was $327,00, up 9% year to date. 

25 condos were sold in July 2013, a 108% increase from July last year and with 109 sold up almost 20% year to date.  The median sales price in July was $125,000, up 17.8% from last year. Year to date the median sales price was $128,000 down 3.8%. 

Read the full report from SiteTech Systems at:http://ccarimages.fnistools.com/Uploads/RECos/1207/ContentFiles/pawleysislandlitchfieldjuly.pdf

Mortgage Rates for August 12, 2013

Mortgage Rates for August 12, 2013 by one Grand Strand Lender:

30 yr fixed 4.50% purchase;   4.50% refinance

20 yr fixed 4.125% purchase; 4.25% refinance

15 yr fixed 3.50% purchase;   3.625% refinance

10 yr fixed 3.375% purchase; 3.50% refinance  

While up a little from months past, they still represent a historic opportunity to lock in a low rate.

Myrtle Beach Real Estate Market Report for July 2013

Good news for the Grand Strand Real Estate Market

In July, Single Family Residential Sales were up 12.5% compared to 2012; year to date, SFR sales are up 20.1% from 2012. In addition to these strong sales numbers, prices are up as well, the median sales price was $177,836 up 4.94% over last July and 4.77% year to date.  Inventories of homes for sale continued to decline, but are still up 4.45% from last year, but the good news for sellers is the distressed inventory (houses in foreclosure) is down 32.6% below last year—taking some downward pressure off prices.

Condos sales are up 17% compared to last July and 7.6% year to date. The median condo sale price is $110,000, up 16.4% over last July and up 2.6% year to date.  Condo inventory is down 8.43% and the distressed inventory down a whopping 43.7%.

What do all these numbers mean to the average seller or buyer?  For sellers, it’s looking better and if you’ve priced your house with the market, stick with your price.  For buyers, it’s no longer the time to make unrealistically low offers as sellers are seeing multiple offers for well-priced homes.

This data is based on research by Site Tech Systems; read their full report at: 

http://www.sitetechsystems.com/Grand_Strand_Market_Report.pdf

June Real Estate Market for Litchfield

In June, single family home sales showed a decline from last year, however, prices were up.  Condo property sales were down and prices were flat.

Real the full report from SiteTech Systems at:
June Real Estate Market for Litchfield

Grand Strand Real Estate Market for June 2013

In June Single Family homes continued strong with the number of sales year to date up 19.2% from 2012 with the median sales price up 6.72% YTD.

However, inventories are up almost 7% from last year and mortgage interest rates are slowly climbing higher; these factors will keep the number of sales and further price gains under pressure, but off setting this is the number of distressed properties (foreclosed, etc.) which is down 33.8% from last year.

Condos show smaller gains with the number of sales up 4.8% year to date and the median sales price about the same; distressed properties are down sharply, 43.7% from last year, potentially good news for sellers. Condos remain difficult to finance with about 61% being cash sales compared with about 26% for single family homes.

The complete market report compiled by SiteTech Systems can be found at:

http://www.sitetechsystems.com/Grand_Strand_Market_Report.pdf

Should You Get a Reverse Mortgage?

You can't turn on the TV these days without seeing some worn out actor or former politician pitching reverse mortgages as if they they are a great deal for seniors. Well, maybe.

Some big lenders have pulled out of the reverse mortgage business--Wells Fargo and Bank of American, but plenty of other lenders remain, so if you want one, you'll have no trouble finding a lender.  Why? Because they are highly profitable for the lender, but perhaps not such a good deal for the borrower; they have steep up front fees.

Only get one if you:

• Have equity in your home and no way of paying your bills other than selling your home and living on the proceeds
• Can pay the property taxes and home owners insurance bills from now until you die with or without the money you're getting from the reverse mortgage.

With a reverse mortgage, only available to those 62 years young, you get to cash out most of your equity and keep your house.  The bank pays you the value of your house either in a lump sum or fixed monthly payments both of which are based on formulae taking into account your home's current value, current interest rates and your age.

Since you don't pay back a reverse mortgage, you don't have to prove income--the reverse mortgage is your future income.  If you take the lump sum and spend it, you get to stay until you die, but if you don't pay your property taxes the bank will and then they'll foreclose.  If you don't pay your insurance, the bank will buy a policy for you and expect you to pay for it, but if you can't, the bank will seek permission from HUD to foreclose.

So before you sign up for a reverse mortgage, make sure you'll be able to pay your property taxes and insurance in the future and allow for inflation, as they always go up, not down.  Here, along the South Carolina coast, expect substantial increase in windstorm and flood insurance.

A reverse mortgage can be a blessing if your retirement income isn't enough, just be sure you can always pay your taxes and insurance no matter what.

Georgetown & Pawleys Island Benefit Golf Tournament

The Georgetown/Pawleys Island Elks Lodge #900 is sponsoring a Benefit Golf Tournament for the Smith Clinic of Pawleys Island organized by the Heritage Plantation Golf Club on July 20th.  Start time 8:30AM, $60 per person.  Call 843-235-9435 or 843-455-8496 to reserve your place.

The Smith Medical Clinic, Pawleys Island at Baskerville is an outreach of Holy Cross Faith Memorial Episcopal Church and exists to meet the medical needs, free of charge, of indigent individuals and families in Georgetown County.

Current Mortgage Rates for Grand Strand Borrowers

Here's what one local lender is offering, but always shop around:

30yr fixed 4.125% purchase; 4.375% refinance

20 yr fixed 3.875% purchase; 4.125% refinance

15 yr fixed 3.25% purchase; 3.50% refinance

10 yr fixed 3.00% purchase; 3.25% refinance

Mortgage Interest Rates Move Higher

According to the Mortgage Bankers Association, for the week ended May 31st, the average contract interest rate for a 30 year fixed rate mortgage was 4.07% the highest since April 2012.  

Don't Strip the Neck!

This sums up the highway proposal....

A citizens' coalition has formed to force public dialogue on the proposals to modify the median of Highway 17 in the Pawley's Island business district.  In short, the plan calls for 1.8 miles of a raised median with 17 breaks for U turns--this is going to make traffic better?  You got to be kidding me!

Details:

• The current revised plan is NOT a highway beautification project and will have NO landscaping.
• An unattractive 4-5 foot wide concrete median will appear in much of the 1.8 mile project.
• Seventeen (17) U-Turns will replace ALL left turns – requiring vehicles to cross over two lanes of oncoming traffic to get to the U-Turn lane on the opposite side of the highway and then vehicles must merge back into traffic with NO acceleration lanes.
• Access to major connector streets will be limited – streets such as Professional Land, Tiller Drive, Parkersville Road and Archer Road.
• Emergency vehicles and large trucks WILL NOT be able to make most U-Turns. Many heavy trucks will be forced to go through Petigu & Martin Luther King Road residential areas.
• The project will have MAJOR ECONOMIC IMPACT on landowners and businesses.
• Most businesses cannot be accessed from the opposite side of Highway 17.
• This project will lead to more strip development.

Two upcoming meetings: 

County Council -- June 11 at  5:30PM at the Old Courthouse, Georgetown,

HWY 17 Project Information Meeting -- June 20 at 7PM at Waccamaw High School Auditorium, Pawley's Island

For more information:  www.dontstriptheneck.org

Wine Tasting at Brookreen Gardens

The Friends of Brookgreen Gardens will host a wine tasting in the Live Oak Allee, Saturday, June 15, from 5:30 to 8 PM.  An annual fundraiser, the wine tasting and silent auction, promises a casual evening's enjoyment.  Tickets are $65 (Members $50) and reservations are required--call 843-235-6016. 

Farmers' Markets in the Grand Strand

Think the produce at your local supermarket looks a little tired?  Try some of these farmers'  markets:

Surfside Beach -- Tuesdays -- 10AM to 3PM at the corner of Surfside Drive and Poplar Street

Deville Street -- Saturdays -- 10AM to 2PM  at the Market Common

Conway -- Saturday -- 8AM to 1PM  at 217 Laurel Street

Pawley's Island -- Wednesdays -- 9AM to 1PM at Parkersville Park

North Myrtle Beach -- Wednesday, Friday and Saturday 9AM to 6PM at corner of Oak and Joe White

Brookgreen Gardens History Project

Former residents, descendants and workers of the plantations that now make up Brookgreen Gardens are invited to share their Gullah Geechee experiences and memories with interns of the B. N. Duke Scholars Program of Duke University at Durham, NC. The plantations are Brookgreen, Laurel Hill, Springfield and The Oaks. The Gullah Geechee Cultural Heritage Corridor Commission has partnered with Duke in a two year community outreach; information gathered will help understand the Gullah Geechee culture of Georgetown County.  The interviews will be on June 22 and 27 and July 11 and 13; to sign up call 843-235-6049.

Flay Day, Georgetown

There will be a Retirement of Flag Service at Morgan Park in Georgetown on Flay Day, June 14, sponsored by the DAR, Daughters of the American Revolution.  Used Flags, no longer suitable of use, can be dropped off at the Georgetown County Chamber of Commerce on Front Street.  The Ceremony is at 10 AM.

Home Improvements That Hurt Resale

1. Elaborate  landscaping or gardens

You may have a green thumb and be proud of the time you spent on the garden, the hedges or landscaping. But the next buyer might see it as too much maintenance. Potential buyers may not be willing to pay for it, hire a gardener or do the work themselves. This is especially true with Millennials and Gen X-ers. Certainly your property must have great curb appeal and nice landscaping does sell, but quick and inexpensive improvements to your yard may be all you need--consider hiring a lawn service for a one time going over and add a few flowering plants from a garden shop. 

2. Converting a garage into a family room

This may make sense if you have a large family the will actually use a family room, but be careful the renovation isn't done too late--children at college or on their own  won't use it. When it comes time to sell a garage is expected, especially in the suburbs, if you take it out, you've lost many buyers. Solution: Perhaps minor changes, that can easily be are is all you need--clear out the clutter, paint the floor, walls and inside of the garage door and remove and store the door opener.  Add a large area rug, new light fixtures a window AC with heat--what more do you need?  All this can be easily removed when it comes time to sell.

3. Taking out a bedroom

These days homeowners often transform a bedroom into a huge master closet or into a home office.If you do, make sure the room can be easily turned put back when you sell, no built-in desk and cabinet. . Buyers with kids may need that bedroom. They’ll see the room you converted into a home office or closet as more money they’ll need to spend to turn it back into a bedroom.

To convert a bedroom into, you'll probably want direct access from the master bedroom, which  may include taking out a door and putting up walls. Settle for storing your out of season clothing in the existing bedroom's closet and donate what you don't wear to a thrift store. Once you move your seasonal clothes and cleaned out the stuff you haven't worn in the last several years, you'll have plenty of room.

4. Adding a swimming pool

Same as fancy landscaping; a pool requires maintenance and is an even bigger liability. If you’re in the South, a pool may make sense, especially if they're common in your neighborhood. Think twice if you're in the Northeast, you'll have to heat the pool most of the time and prep it for winter. Join your local Family Y with a pool, instead.

5. Adding personalized colors, finishes or fixtures

Often, homeowners put in tile, sinks, vanities, counter tops and floor coverings specific to their tastes that are hard to replace. For example, you love the Italian tile from your  vacation last year and want it in your kitchen; have it made into a coffee table instead. Stick to neutral colors for permanent improvements; if you spent big bucks on upgrades, your home's value when you need to sell, may not reflect the expense. Some inexpensive improvements are always good--chair railings, crown moldings and an upgraded front door, for example. Be careful you don't turn off buyers who don’t like your taste and don’t want the hassle to undo your changes. Decorate to your taste with furniture and accessories that you can take with you and use in your new home.  If they are highly personal, ask your agent if they should go into storage be showing, so prospective buyers can easily view themselves in your home.

Housing Recovery Picks Up Speed

The housing recovery has picked up speed, as home prices posted their highest year-over-year gain since February 2006, according to the latest housing data from CoreLogic. 

CoreLogic's home price index climbed 12.1 percent in April over year-ago levels. Home prices have been on the rise for more than a year. 

"The pace of the housing market recovery quickened in April as home prices rose across the U.S.," says Anand Nallathambi, CoreLogic's chief executive officer. "We expect this trend to continue, bolstered by tight supplies and pent-up buyer demand."

CoreLogic economists predict home prices will rise another 2.7 percent in May. 

The following five states had the largest price gains over the past year: 

• Nevada: +24.6%
• California: +19.4%
• Arizona: +17.3%
• Hawaii: +17%
• Oregon: +15.5%

Will this trend continue, yes, but almost certainly not at this pace.  

Financing and re-financing remain difficult for most buyers, new construction is ramping up and sellers who had postponed selling are not listing their houses; these factors and others will pressure further price increases.

And, let's learn from experience, it prices do continue to increase at these levels, what's that called?  A BUBBLE.  What the nation needs to see is steady increase in housing prices, matching the the rate of inflation or a little more.

Garden City Beach & Murrells Inlet Real Estate Update for April 2013

For the update, just click

Surfside Beach Real Estate Update for April 2013

For the update, just click

Litchfield/Pawleys Island Real Estate Update for April 2013

Just click for the April update

Old Mytle Beach

A friend loaned me some photos of Myrtle Beach hotels

 probably from the late 1930s:

The Pilot House

The Joanne
at 29th Avenue North

The Sea View

The Jaunita

The Seaside Inn
around 1910

The photos of the Seaview, Pilot House and the Jaunita
 are not in the public domain, but may be copied
 for non-profit purposes with attribution.

Using Twitter with Facebook

Here's how to connect your Twitter and Facebook accounts so your Tweets will automatically post to your Facebook Wall:

1 Log into Twitter
2 Go Settings menu's Profile Tab
3 Scroll to the bottom and click Sign into Facebook and connect your accounts
4 When prompted, select the privacy settings for who will see your Tweets that post to your FB, it's public by default
5 Click Log in with Facebook and enter your FB credentials
6 Click Allow to accept permissions
7 Your Tweets will now post to your FB wall and your username as well
8 Don't forget you set this up--there may be tweets you don't want on your FB wall--there's an opt out for that tweet

Happy Tweeting!

GRAND STRAND MARKET REPORT April 2013

Here's the mostly good news from Site Tech Systems:

Single family homes sales are up in April, 31.5% from last year; year to date sales are up 19.5% from 2012. The median sales price shows signs of stabilization, up 3.1% from 2012.  However, as the number of sales climbs and prices stabilize, more homes are coming on the market, inventory is about 6% above last year and will probably continue to grow in May.  Increasing inventory tends to keep prices down, but fewer available homes are distressed inventory (homes in some stage of foreclosure) which is good as distressed home sales tend to put downward pressure on prices.

Condo sales, both in number and median price remained flat with 2012 and inventory continues to decline, both overall and distressed, which over the next few months should help prices.

Much better news for sellers and for buyers, time to take action.

Read the entire report at:

http://www.sitetechsystems.com/Grand_Strand_Market_Report.pdf

FLOOD INSURANCE Changes and Increases

Changes are coming to the national flood insurance program.  What hasn't changed is this: Almost every property owner should have flood insurance.  PERIOD.  Floods can happen any place at any time.

Flood insurance is almost never included in your homeowners insurance.

If you live in a Special Flood Hazard Area there is a 26 percent chance of a flood during the life of a 30 year mortgage. If so, you really need food insurance, even if your property is paid off.  Find out if you're in a Special Flood Hazard Area at www.msc.fema.gov.

FEMA's National Flood Insurance program allows homeowners and renters to purchase to purchase federally backed flood insurance.  Visit www.floodsmart.gov to learn more.

Congress has mandated that the national flood insurance program become financially self sustaining.  Many policies will go up, sometimes small changes can make a big difference in your premium.  For example, if you have an elevated home (one on stilts) any downstairs enclosure must now be less than 300 sqft or you'll pay a higher price.  Home elevators can also bring higher premiums unless modified or designed to special standards.  So know before you buy, check with your insurance agent.  If your house has a large downstairs enclosure or an elevator, now is a good time to check into necessary modifications, before your premium jumps.

Litchfield / Pawleys Island Market Update - March 2013

For the Litchfield Market / Pawleys Island Update for March 2013:

http://ccarimages.fnistools.com/Uploads/RECos/1207/ContentFiles/pawleysislandlitchfieldmar.pdf

Surfside Beach Real Estate Update - March 2013

For the Surfside Beach Real Estate Update for March 2013:

http://ccarimages.fnistools.com/Uploads/RECos/1207/ContentFiles/surfsidebeachmar.pdf

Garden City / Murrells Inlet - Real Estate Update - March 2013

For the Garden City/Murrells Inlet Report for March 2013:

http://ccarimages.fnistools.com/Uploads/RECos/1207/ContentFiles/gardencitymurrellsinletmar.pdf

Grand Strand Real Estate Activity March 2013

Here's the March 2013 Report from SiteTech Systems:

"Solid First Quarter for Grand Strand Real Estate Activity

…..sales activity up double digits and sales prices have stabilized and rebounded

The momentum for the last half of 2012 carried into the first quarter of 2013 in both Single Family Residential (SFR) and Condo activity. In March, SFR sales volume was up 11.6% as compared to March, 2012. This solid growth translated to Year to Date (YTD) sales to be up 11.6% to prior year levels. SFR inventory maintained it seasonal increase and is now 4.6% higher than March 2012 levels. Non distressed listings continued to decline and now represent 12.6% of all SFR listings. Continuing its trend from February, SFR median sales price was $176,000. YTD, the SFR median sales price is $174,990 which is up 3.5% from its 2012 level. The improvement in median sales price is driven by a reduction in the percentage of distressed sales. For condos, the listing inventory increased seasonally but is down 11.7% from its 2012 level. Distressed condo listings continue to decline and are down 33% from its prior year’s level. Condo sales remained strong, up 3.7% for March 2012. YTD, condo sales are up 9.3% from their 2012 level. Driven by cash and distressed sales prices, the median sales price for condos slid to $101,750. However, the YTD median sales price of condo sales are up 4.5% from 2012. After a strong 2012, residential lot sales activity has slowed and are down 8.1% from their 2012 levels. The median sales price of residential lots have remained stable at approximately $35,000."

For the full report:

http://ccarimages.fnistools.com/Uploads/RECos/1207/ContentFiles/monthlysalestrendpublicmar.pdf

Myrtle Beach Real Estate Market, February 2013

Here's the February Grand Strand Market Report from 
SiteTech Sytems:

"January’s momentum continued in February…..strong sales 

and rebounded sales price led a strong February.

Single Family Residential (SFR) sales activity remained strong as 

February’s volume was up 13.6% from February 2012. Year to 

date, SFR sales volume is up 16.6% to prior year levels. SFR 

inventory is seasonally up, however February’s level is 3% higher 

that prior year levels. On a positive note, non-distressed listings 

continue to decline and now represent a declining share of the 

total listing inventory. SFR median sales price rebounded from 

January to $175,000. This improvement was driven by higher 

non-distressed sales prices. Year to date, SFR median sales 

price is down 3.7% from 2012. Condo sales activity was strong in 

February; up 18.7% from prior year level. Year to date, condo 

sales are up 21.9%. Condo inventory increased seasonally, but is 

still below prior year levels (down 10.4%). Condo median sales 

prices rebounded from January, up 14.5% from January. The 

improvement was in both distressed and non-distressed 

sales. Year to date, the condo median sales price is up 9.5% 

from 2012. The rate of residential lot sales improvement slowed, 

but the 2013 volume is up 9% from 2012. Overall, distress sales 

remain at 28% of all sales, up slightly from Q4 2012."

For the full report, click:

Grand Strand February Market Report 2013

Sellers: Does Your House Compete ONLINE?

After you list your house, check to see what your home looks like online.  No kidding.

Chances are the agents you met with before listing (you did meet with more than one, didn't you?) demonstrated their commitment to online marketing and you chose an agent who takes online marketing very seriously. Now that you've listed, it's time for further due diligence. Today, online marketing sells houses, but somehow, there are still hundreds of listings in every major city that receive a failing grade on their online presence, once the home has actually been listed.  Make sure yours isn't one of them.

Pictures are critical. Not one or two, but at least a dozen, preferably more, that show the home in the best possible light.  In focus, well lighted, pictures sell houses.  No pictures of dirty dishes or the trash area, please. Pictures of the neighborhood are good too. 

Listing descriptions that may bemuse buyers, but would befuddle and even anger the homeowner are common. Start with no description, misspelled words, etc. A description of clearly the wrong house or which says, "this place is a mess," are out there and won't get your house sold.

Sometimes, the problem is a glitch along the production chain that it takes to get a property marketed online; other times agents just aren't bothering to do the job right. It’s free for you, the seller, to hop online and see how your home is presented online; the same listings, virtual tours, and property websites that buyers will see.  And it’s often the only way these glitches will get caught, brought to the agent’s attention and rectified. If you can't find your home online, chances are no one else can either.

5 Aesthetic Issues That Turn Off Buyers

Fixing these issues before listing can mean a fast sale and boost price:

Thinking of selling?  Take on these projects before listing for a big difference in how fast your home sells and for how much.  

Thinking of buying?  Look for the owners who didn't bother to fix the easy stuff and offer accordingly.

1  Overgrown landscaping.  Curb appeal sells and you've only got seconds as buyers drive by.  Do it yourself or hire it done and while you're at it, add a few flowers.

2  Ugly paint, inside and out.  Outside: power wash and touch up at a minimum.  Inside: neutral colors sell best and paint is cheap.  If you're sure you don't need to repaint, then make sure to clean around light switches, door knobs and such.  Wash the windows, too.

3  Mirror walls.  Take them down immediately and fix and repaint as required.  'nough said.

4  Wallpaper and paneling.  Chances are your taste in wall paper, no matter what, isn't your buyer's. Take it down and paint in neutral colors. Paneling is tricky. Real wood paneling is surprisingly expensive and may just need cleaning or refinishing. Real wood paneling probably isn't hiding problem walls; panel board probably is; take it down and fix them now.

5  Closet doors and interior doors.  Make sure they all fit, work and are clean--no dust and fingerprints. Replace missing doors and if you have beads to go with the mirror walls, you know what to do. Gone.

Grand Strand Economic Report 4th Quarter 2012

Attached is the fourth quarter Grand Strand Economic Report which is prepared in a joint effort from SiteTech Systems and CCU’s Wall College of Business Center for Economic & Community Development.

During the fourth quarter, the Grand Strand economy continued to improve, although we have yet to see significant gains in employment and income. The unemployment rate continues to fall, almost entirely due to unemployed individuals leaving the labor force. Healthcare and higher education are leading growth in employment, but these gains have not yet been strong enough to offset the losses in other sectors. The strong retirement demographic continues to stabilize demand in both the tourism and residential construction sectors. Nationally, the economy weakened in the fourth quarter of 2012 as GDP declined 0.1 percent. Fiscal uncertainty associated with the budget debate as well as the expiration of the 2 percentage point reduction in the payroll tax will weigh on investor and consumer confidence in the first half of 2013.

Tourism has experienced growth compared to the 4^th quarter of 2011.  The Grand Strand witnessed increases in occupancy rate, ADR, and RevPar. The hospitality related taxes and fees decreased in the 4^th quarter due to the unusually high amount of collections in the previous year.  This is partly due to SC DOR’s legal decision to collect taxes back as far as 10 years on VRBO properties and recording the fees in the period they are collected and not when they are accrued.

Real estate continues to improve in the 4^th quarter as the number of SFR and condo/townhome sales increase and excess inventory is decreasing.  The median sales prices for condo/townhomes are flat from 2011, seeing a substantial increase in sales with virtually no price appreciation.  The SFR median sales has decreased almost 3% from that of 2011. Sales prices will increase as the distressed properties continue to be pushed through the inventory.  SFR building permits have increased almost 70% as well-located subdivisions continue to attract buyers and builders.

Read the entire report at:

Grand Strand Economic Report 4th Quarter 2012

Pre-Approval versus Pre-Qualified....

If you were taking a home buying class, the first thing you would talk about is getting pre-approved by a lender.  Unless you're in the fortunate position of being able to pay for your new home up front, you will have to borrow money. 

When the real estate market was slow, the sense of urgency to get financing was not very high. Buyers figured they could take their time to find a home and then they'd firm things up with their lender. Now the market is starting to improve,  but financing remains difficult to get, so the first thing a serious buyer should do is line up their financing.  This means getting pre-approved to borrow a certain amount, not just being pre-qualified.

There is a big difference.  A pre-qualification is just an initial step, typically a phone conversation about your overall financial picture. The lender may discuss income, debts, and go over different payment options, but it should not be confused with a firm pre-approval.

In order to grant a pre-approval letter,  a lender will probably complete a formal application, pull the buyer's  credit report and collect specific documentation such as pay stubs, W-2's and tax returns. This will allow them to better define your maximum price range and that that they can make the loan.

Being pre-approved will make you a stronger buyer and allows you to move quickly if needed. In an active market, you never know when you'll find the home for you, but when you do, you should act quickly.  If you have to wait while you get your financing in order, you may lose the home to other buyers.

Another benefit to being pre-approved is that real estate agents will take your interest more seriously and be willing to devote their time and money to helping you find a home. Many top agents require their clients have a firm pre-approval letter before they will show property. The same with sellers.  A buyer who can demonstrate that they can actually buy the house is more likely to have their offer accepted and is in a stronger negotiating position.

Grand Strand 2012 Market Report

The Grand Strand Market Report is out--here's a quick summary:

Nationally late 2012 appears to be the turn around for the real estate market and the Grand Strand is tracking along, perhaps a few months later.  

• Property sales are up by double digits over 2011
• Inventory (number of properties for sale) continues to decline
• Distressed inventory (short sales and foreclosures) continues to fall
• Single family homes sales were up 18.1% over 2011; condos up 11.7%
• For 2012 median home prices was $168K down 2.6% from last year; condos, $104K a 3% drop
• Both home and condo prices were up in December benefiting from declining inventories and low interest rates.

The big picture:  inventories are declining, number of sales are up, prices are trending up, read the full report here:  Grand Strand MarketReport, December 2012

News You Can Use: Free Music

Amazon.com has announced that anyone who has bought a CD on Amazon over the last 15 years is entitled to a free digital copy of that album and the deal applies to all purchases going forward.

Your tunes will automatically appear in Amazon's Cloud Player and will be immediately available for download.  If you've never accessed your account, you'll find the music there when you do.

A great deal especially if you've lost your CD or had them stolen from your car.  But think about it, it's a little creepy that Amazon keeps all your purchases on file, apparently forever.....

Now if they'd just make the same deal for books....

Good bye to Adjustable Rate Mortgages?

The Feds have changed the rules for adjustable rate mortgages making it harder for buyers to qualify and probably forecasting the end of ARMs.

They've instituted an ability to repay rule, effective January 2014, requiring lenders to evaluate whether a borrower can repay if the loan adjusts upwards.  Unlike fixed rate mortgages which have the same interest rate and payment over the life of the loan, ARMs fluctuate with interest rates, usually being pegged to LIBOR, a world wide reference rate computed in London.

Instead of qualifying buyers with an ARM's low introductory rate, the lender will be required to use the loans loan's "fully indexed rate" or LIBOR plus the lender's margin.  This will make it harder for some buyers to qualify,  but once they do it's less likely they'll be forced out of their home if (really when) interest rates rise.

One thing for sure, interest rates will eventually go up,  it's just a matter of when and how far--how can I be so sure, easy, they can't go much lower unless we start paying banks to hold our money....

So why bother with an ARM?  An ARM with a low introductory rate might make sense if you know you will be moving around the end of the introductory period; otherwise a fixed rate mortgage is likely to be a better deal for the long term.

Mortgage Forgiveness Debt Relief Act

On January 1, 2013, Congress passed an extension of the Mortgage Forgiveness Debt Relief Act. This great news for struggling homeowners in the Grand Strand.

The Mortgage Forgiveness Debt Relief Act was originally passed in 2007 to aid the millions of homeowners who suddenly found themselves in danger of losing their homes to foreclosure following the housing market crash.

Under the Mortgage Forgiveness Debt Relief Act, any debt forgiven in a short sale, foreclosure, or loan modification, is exempt from federal taxes on primary residences.

For homeowners facing foreclosure, this exemption may save them from paying thousands, or even tens of thousands, in taxes on top of losing their homes. For another year, homeowners can take advantage of this exemption if they must  do a foreclosure, a short sale or a loan modification. 

Apartment Rents Continue to Rise

Landlords along the Grand Strand are finding that demand for apartments and rental houses is strong and high rents aren't deterring people from renting. But as rents continue to rise and and mortgage rates remain at near record lows, more folks are finding it's cheaper to buy than rent, if they can qualify for a mortgage.  However scraping together a down payment to buy a home remains tough for many consumers and tight mortgage standards are forcing some who might like to buy a home to continue renting.

Part of the high demand for rentals is driven by changing demographics as many people like the flexibility to be able to pick up and move; the improving job market makes people think twice about putting down roots if they believe relocating will be a good career move.

What's the impact for the Grand Stand?  If your job is secure and you're happy with the area, now is the time to buy; if you're looking for a better opportunity, keep renting.  As the economy continues to improve, developers are dusting off those apartment projects they put on hold; once new units hit the market, rents will stabilize.

Price Your Property Right

One of the biggest problems that we have in the Grand Strand  market is sellers still expect to get 2006 prices
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​Buyers in general are well informed and have done their homework on the Internet and always ask for market comps. All to often sellers ​say, “Well, my property is special which is why I bought it”. All those wonderful reasons are good points for potential buyers, but every buyer has their own list of dreams and desires and they’re all watching current sales on line.
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​In this market your property must be priced competitively AND it needs to be one or two best values in its market category to get agents' attention and on their show list. It has to be in great condition, because buyers are now looking for every flaw possible and are making objections for the smallest of items. If you're lucky enough to get a contract, there'll be an inspection and everything found will have to fixed, no matter how trivial, if the buyer doesn't insist, their lender will.

The end result for sellers that don’t price to the market is being just behind the selling price range and risking further price declines. If you are a property owner and truly want to sell, ask you listing broker to do a very thorough market analysis and ask what it will take to be the first one or two properties shown in your property's market niche. You might not like the answer, but pricing to market will greatly improve your odds of making a fast sale and time is money too.

Want To Get A Mortgage In 2013?

Ah, remember the good old days, say just a few years ago, when all you had to do to get a mortgage was ask and then fight off the mortgage brokers?  If you haven't applied for a mortgage in the last year or two, get ready now for the new reality: Credit standards are tight and that's an understatement.

Lenders these days are engaging in "defensive underwriting".  While the Federal Housing Administration (FHA) allows borrowers with credit scores under 700 and down payments of just 3.5% to buy homes, that doesn't mean that you can get a loan on these terms.  Lenders are scrutinizing property appraisals, income tax returns and bank statements for any flaw, no matter how small that could be used to force them to buy back a loan.  Did you sell grandfathers pocket watch on ebay and make a one time deposit of a few hundred dollars to your checking account? Be prepared to explain where the money came from, with documents.  If your bank statement says there are seven pages, don't throw away the last three even though they contain nothing but the terms and conditions of your checking account; the lender will want them all and for at least the previous three months.

What to do?  If you're even thinking of applying for a mortgage in the next year or so, start getting ready now.  Pull your credit report from all three credit bureaus and carefully review them.  If they are less than perfect, now is the time ask for corrections and do so by old fashioned letter, not phone calls and emails and keep a copy of everything.  It's usually not a good idea to close credit accounts you don't use, you might even consider using them occasionally. If you carry a balance month to month on your credit cards, get it down to less than 20% of your over all credit line and pay on time. Resist the urge to open new accounts at stores just to get a discount on a purchase; old credit is better than new credit.

Next assemble your last three years of tax returns and look for anything that might raise a question with a lender and gather the documentation now to substantiate the return.  The same with bank accounts, review the last year at least for abnormal deposits, you'll need to explain them.  Unlike credit accounts, closing little used savings and checking accounts might help, certainly you'll have less paper to submit and explain.

The bottom line: if you want to get a mortgage these days, you must be prepared to submit the most trivial financial documents and explain them, your credit report must be as clean as you can make it and be ready to explain any negative information with documentation.  Start now.

Could Rising Demand in 2013 Boost Prices?

It looks like home prices finally hit bottom in 2012, so now what? Buyers increasingly expect home prices to continue to rise in 2013 and many are showing a sense of urgency. If 2013 is the first year since 2006 that prices ended up, we might see the beginning of equilibrium in the housing market.

In most of the nation, every single indicator is giving a thumbs up signal: inventory is falling, affordability is near a record high and household formation is up. Rents are rising in many markets, encouraging renters to buy and in some cases they can buy for a lower monthly outlay than renting. Investor demand for housing is up as they seek better returns for their money.

Rising prices could eventually encourage more sellers to put their homes on the market, fueling demand even further.  Why? Sellers have to live somewhere, often they are up sizing, down sizing or moving for retirement, all of which they put off waiting for higher prices. So many if not most sellers are buyers as well.

What's the catch?  Well, the folks in Washington aren't helping matters. Buyers and sellers want economic stability when they go to the market; "Fiscal Cliffs" with the uncertainty about what Congress might do, if indeed they do anything at all, doesn't help the economy or the housing market.

The Shadow Market in 2013

The real estate market across the county came alive in late 2012 with home sales and housing starts up strongly.  Prices are doing better, too.  But skeptics still point to sizable overhang of properties headed to foreclosure--the so called "shadow" inventory--that they say will erode the market's recent gains.  Maybe.  

While the shadow inventory remains high, it may not choke off the strength we're seeing.  There are several reasons, first the number of homes in foreclosure is shrinking, down from a peak of 4.7 million nationally in 2009 to 3.4 million at  the end of 2012. The discount at which foreclosures sell has narrowed significantly, from around 24% in 2009 to 7% now. Inventories of new homes for sale are tight and the number of listings of previously owned homes is at an eleven year low. 

On the demand side, sales of new homes are up strongly and sales of previously owned homes are likely to follow. Investor buying has slowed in most areas as well. Mortgage rates remain at historic lows for those who can qualify and are likely to stay low for the next several years. Banks have become more adept at handling foreclosures and realize it's not in their interest to dump large numbers of houses on the market.  They do more short sales now, where they allow the home owner to sell for less than the mortgage owned--faster and less costly for the bank.  

It's going to take years for housing is back to normal, but as long the recovery continues, however slowly, the shadow market should have little effect.

Facebook Tips for Real People

Facebook is here to stay, for the moment at least...well, remember My Space?

But while it's here, make the most of it to enrich your life and your community.

Don't shoot for the 5000 friend maximum.  It you can't put a face to the name, you probably should "unfriend" them...don't worry, unless they're very tech savvy they'll never notice and if they do, maybe they're worth knowing and adding back.  

Focus instead on developing around 300 to 500 online friends within your immediate community, your family, your work, your interests and those with whom you, no kidding, want to keep up with. 

Then comment in thoughtful ways after carefully reading and understanding what they post and what's going on in their lives.  Focus on their successes and improving your community, then: Get Involved in the Real World:  Join a civic group, church, adopt a pet, volunteer--anything to start expanding your circle of friends IN PERSON.

Make Facebook a tool, not an occupation.

10 Lessons Learned as Housing Recovers

Headlines abound: The Housing Bust is over… 

Housing has hit bottom and is turning around.  Realtors, homeowners, renters, and all Americans are sighing with collective relief.  If they're correct.

But first we need to pause and consider what we've learned in the last few years:

1  The economy is global.  The mess in Europe has to be resolved for the U S to see a sustained economic recovery and sustained housing recovery.

2 The folks in Washington D.C. must get their act together, work together and begin to resolve the economic issues facing the nation.  Fiscal cliffs, increased government spending and borrowing from China to support that spending do not bolster consumer confidence or boost the economy. 

3 The economy cannot recover without housing. Good News: the stock prices of the major U. S. home builders are up and they are beginning to build again. That puts Americans to work and guess what, if you have a job, that's the first step to buying your  own house.   

4 Homeowners confidence in the economy is directly related the value of their own homes.

5 Everyone needs shelter, but not everyone needs to own their shelter.  The American dream of owning your own home may not be appropriate for everyone.

6 High home ownership rates are important but they must be sustainable.  Owners must be able to afford their homes in the long run.

7 Home prices go UP and go DOWN.  If home prices have bottomed, they're likely to remain stable for some time.  Increases for the foreseeable future are likely to mirror the rate of inflation for most areas, but there'll be exceptions of course.

8 The process of purchasing/financing a home is more complicated now than ever before and will remain so. Sound  mortgage underwriting is critical.  Prospective buyers must be prepared for a detailed application process to get a mortgage. Expect every fact and every document to be verified. 

9 Home equity should not be used for ordinary living expenses.  We're not likely to see the days of taking out equity every few years.  

10 Financial reserves for families, companies, and countries are necessary.

What is important is that we remember what happened as we prepare to write the future.  Most importantly, we should also have a sense of accomplishment that we endured these life lessons.

There are seasons in the weather: spring, summer, fall and winter.  So there are in economic cycles.  It is great to be at the thaw of winter and the budding of spring.