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October 16, 2009

Things to Know About Living in Charleston

Charleston is a great city but like anywhere, there are things to consider before moving:

1/ Charleston is in the South and you will need to accept you will be living in the South. Most folks, escpecially true southerns are friendly and hospitalble people, but they just don't take kindly to people constantly talking abouthow they did things up North.

2/ Don't look for a basement, just accept that your new home will not have one.

3/ Charleston sits in a Hurrincan path, so be prepared with a plan and good insurance.

4/ Palmetto bugs (like roaches) are annoying and a fact of life in the South but can be controlled. Find a good bugman.

5/ Living on the water is great, and convenient, if you are a boater. Do be preared to pay a little extra for the priviledge.

6/ There is traffic and like any other city is inconvenient, but the view is usually better in the LowCountry. Unless you get behind a horse carriage giving a tour. That can be frustrating.

7/ The Charleston area is not lacking for things to do. Golf, boating, shrimping, crabbing, clamming, kayaking, tennis, beach walks, theatre, events, lowcountry boils, dining, sporting events, historical tours, gardens, city walks, shopping and much much more.

8/ Mount Pleasant is Charleston's northern neighbor and yes, you can walk across the bridge. In fact, it is encouraged.

9/ Charleston is a great walking town, so buy good shoes and be careful on the cobblestone.

10/ Charleston is close to Hilton Head, beaches, Columbia and has easy interstate access and great little airport.

11/ It is HOT in the summer.

October 12, 2009

Patrick O'Donnell House

One of Charleston's most exquisite real estate listings is the Patrick O'Donnell house at 21 King Street, perhaps the city's finest example of the "side hall" construction style popular in Charleston's golden age prior to the Civil War. The side hall concept is a slight modification of the classic "single house", which faced sideways to the street with entry along a full-length porch, or piazza. The side hall motif created a separate entrance on the opposite sie of the house from the piazza, with a stairway that, unlike the single house, did not divide the house. This guaranteed an uninterrupted expanse of shaded exterior as well as contiguous interior chambers that could open into one another for a glorious ballroom spacial concept. No better scenario could ever exist for a formal reception or party, or for its outstanding visual and visceral effect.

September 27, 2009

Home Staging….What?

As many HGTV shows as there are weekly, it is sometimes fascinating to me when I suggest to a seller that they should stage their home and I get a bewildered look. Maybe the message from all those TV shows is lost between annoying commercials and the glitz of TV. So you ask….. Why do I need to stage my home? What is entailed in staging my home for sale?

Let's start with the WHY. Clutter distracts the eye and buyers need as few distractions as possible when trying to envision themselves calling your house HOME. Hore a professional and let them help you set the stage for a better buying experience. It really isn't all that expensive compared to remodeling.

Now lets address the question of….. What is entailed?

1st Impressions = atmosphere. Turn off the TV, freshair, flowers, pleasing scent, relaxing or soothing background music (low volume)
Curb appeal…cut the grass, rake the yard, remove webs or dead bugs from entry, mulch, powerwash, toys out of the yard, etc.
Kitchen counters – cleared, nothing unnecessary should be taking up counter space, wipe down appliances. You want the kitchen to appear spacious, clean and bright.
Paint..neutrail tones. Inexpensive and effective.
Strategically postion plants in areas of your house that look empty or cold.
Furniture…..you may love your oversized chair but deep down you know it is too big for the room. The goal is to reduce furniture to open up space and give the room the appearance of more square footage.
Store the clutter. Your child's latest painting may be special to you but it is clutter to someone else. Store it along with anything else that will distract a potential buyer.
Update…Update..Update – Furniture, towels, anything that looks worn or out of date.

While the above may seem reasonable it is often overlooked. Usually a realtor, a good realtor will notice these often overlooked issues and suggest a home stager or offer some help based on their experiences. Please don't take this information as criticizing you, your sense of style or as insult to your decorating. Your realtor is being paid to sell your house and help you make the most money from the sale.

Let them help. Afterall, staged homes usually sell faster and for more money that unstaged homes.

July 7, 2009

FHFA Approves Expanded Loan to Value Ratios

On July 1st, The FHFA authorized 125% loan to value ratios on loans written by Fannie Mae and Freddie Mac, in an effort to expand the Home Affordable Refinance Propgram (HARP) to homeowners who are current on their mortgage payments from the present loan to value ration of 105 to 125%. These expanded refinance opportunities offer qualified borrowers whose mortgages are currently ownerd or guaranteed by Fannie Mae and Freddic Mac. People with qualifying loans will be allowed to refinance those loans according to the terms of the HARP established earlier this year.

This program is in part meant to encourage home owners to opt for mortgage terms amortized for less than 30 years to help them get back 'above water'.

FHFA

June 28, 2009

FHA Guideline Changes….Coming to a Condo Development Near You

More change is in the air for developers of condo projects and for condo owners who desire to get approved for FHA Financing. The details of the changes coming can be found in the 2009-19 Mortgagee Letter on the HUD website issued 12-June. The FHA is annoucing profound changes to their condo approval process and the outright elimination of the Spot Approval Process. Lookout lenders, more burden, work and overall responsibility is coming your way, while full condo approval documentation and requirements will see a reduction. These changes will become effective 1-Oct. '09. Although, the ripple in the water will almost start to be flet immediately.

2 options for Lenders for condominium approval processing:

HUD Review and Approval Process (HRAP).
Direct Endorsement Lender Review and Approval Process (DELRAP), outlined in this Mortgagee Letter. This option is only available to lenders who have unconditional Direct Endorsement authority and staff with knowledge and expertise in reviewing and approving condominium projects.

The processing options stated above will be applicable to condominium developments that are:

Proposed/Under Construction;
Existing Construction; or
Conversions.

Eligible Projects:

The Condominium Project has been created and exists in full compliance with applicable State law requirements of the jurisdiction in which the Condominium Project is located, and with all other applicable laws and regulations.

Certain types of projects will be ineligible. For Instance:

Condominium Hotel or “Condotels”
Timeshares or segmented ownership projects
Houseboat projects
Multi-dwelling unit condominiums [i.e. more than one dwelling per condominium unit]
All projects not deemed to be used primarily as residential

The major 'Negative" in these new guidelines is the the “Spot Loan Approval” process being elminated. The processes have been streamlined to allow for uncomplicated condominium project approvals eliminating the need to approve units on a “spot loan” basis,” according to HUD. Alomost certainly this new approval process will add more time to the approval of a Condo Project compared to the more immediate quick “Spot Approval” process.

Who will challenge the elimination of the Spot Loan Approval process? Realtors? NAR?

June 8, 2009

The Waiting Game! Are you playing it too?

If you are waiting for the market to hit bottom to purchase a home in Charleston, SC or if you are waiting for prices to start going back up to sell; you are playing the most popular game today ~ Yup, the Waiting Game!

Would-be sellers might be waiting for a long time, and buyers, well, as for when the bottom will hit, it depends on who you ask. Like everything in life, there are two ways of looking at every situtation. Real estate is no different.

Of course every seller would prefer to sell high and buy low. However, if you sell for lower than you would like and are able to buy for lower than it would have cost just last year, doesn't that make for a fair trade off? Ideal, no, worth exploring, yes.

If you are looking to upgrade, NOW is the time. This could be your chance of the dream home on or near the water.

With no access to the all-telling crystal ball – the question to ask yourself is, "How long am I will willing to wait?" Each person will have their own situation to assess but if you are looking to upgrade, downgrade or make that first purchase, now is as good a time as any!

June 4, 2009

Priced to Sell, or NOT

It still amazes me that people just don't get it. Please, let me be CLEAR ~if you are trying to sell your home in this market, price it right or it simply won't sell.

Listing appointments have turned into more than the presentation of the good old days that included the marketing strategy that would be employed to sell the home, to first serving up a hearty dish of price reality. Now, there are certainly enough resources on the internet for sellers and buyers alike to educate themselves before testing the waters on either side of the transaction. Truila, MLS, Realtor websites, Realtor.com, and of course Zillow and its controversial Zestimate are just a few. With the millions of monthly visitors all of these marketplaces claim visit their sites and consume their content, you would think my job would be getting easier, not harder.

If your house has been on the market for awhile and is still on the market, it is clear that either you didn't listen to your realtor or your realtor didn't give you good information. Either way, the conclusion is obvious, YOU PRICED YOUR PROPERTY INCORRECTLY!

It stands to reason, with high inventory levels, more and more foreclosures and short sales coming on the market monthly, that reasonable pricing will peak interest, but unrealistic pricing will not benefit either party.

Educate yourself so that when you meet with a realtor you have realistic expectations. Keep in mind though, all the resources available on the web still won't be able to provide the most up to date market information. None of the other sources has all the data necessary. A realtor can provide your most up to date and complete market analysis.

Price them right folks! And if you can't sell, consider renting! It seems to have worked for the Treasury Secretary! I guess he missed my price it right rant! See his story here!

May 29, 2009

spoleto socializing

Much of the Spolet mystique is the enjoyment of fabulous venues throughout historic Charleston – offering much more than an auditorium seat. Some of the highlighted hangouts aren't on the official festival schedule, but are vintage Spoleto in character. For example, Charleston Grill offers a special combination of dining and jazz with nightly three-course menu complemented by the music of the Quentin Baxter Trio. The price is $39, the time is 9pm, and the venue is classic oziness in low light and dark paneling. Call (843) 577-4522 for reservations. A number of other outstanding downtown restaurants offer early "Prix-Fixe" specials during the festival for those who don't want to go to evening performances hungry, including Carolina's, McCrady's, Circa 1886, Fish, The Peninsul Grill, and Muse.

Among the after-performance hot spots for cocktails, cordials, and Irish coffee are Rue de Jean, Cypress, and Tristan's, and on warm, breezy nights there are few more enjoyable spots than the outdoor venues at Vickery's and Union Pier, or the enticing rooftop bars at the Library at Vendue Inn and the Market Pavilion.

May 29, 2009

Condo Owners/ Buyers – Need to Know Information!

A friend of mine sent me the infromation below regarding condo financing. I thought it would be relevant to a lot of people. Here are some key things you NEED to know about condo financing.

LTV ‘s – Unfortunately, there is currently no PMI available on second home condos and my lender friend was not able to identify any bank or lender doing 2nd mortgages on them except in rare circumstances where the borrower has a strong relationship with a bank. Lenders are limited to 80% max on 2nd home condo financing right now. 75% financing gets buyers a slightly better interest rate. PMI is available on primary home condo purchases to 95% if the borrower meets FICO score requirements.

Condo questionnaires – Full condo review forms are required on primary home condos over 80% LTV, second home condos over 75% LTV and ALL investment condos. Lesser LTV’s are allowed to have a Limited Review where the lender calls and asks several key questions but the management company does not have to complete a full questionnaire.

Current pitfalls of the condo questionnaire ~

Occupancy – If the condo is being purchased as an investment property, the occupancy status has to be at least 51% owner occupied /second home. If it is a primary purchase or a second home purchase, occupancy percentages are irrelevant. Foreclosure/bank owned properties should NOT be counted as investment properties on the condo docs so it would be prudent to double check with the management company if this ends up being an issue to make sure they are not including foreclosures and bank owned properties.

Insurance – All condos with more than 20 units are required to show proof of Fidelity Bond coverage (this coverage insures against employee/board member dishonesty or theft). Most condo associations have this but some have had to add it which has caused closing delays.

HO6 Insurance – The blanket policies for condos on hazard and flood generally just cover the structure and nothing on the interior of the condo. Borrowers are required to get interior “walls-in” policies know as HO6 policies equal to 20% or the appraised value of the condo. If condo value is $500,000, they need $100,000 worth of coverage for the inside and so on. Buyers – know this upfront so you are not surprised.

Delinquent HOA Fees – Important information here, especially considering the market today ~ If more than 15% of the units in a condo are over 30 days delinquent on HOA fees, the property is considered non-warrantable by Fannie Mae guidelines. In a project with 50 units, having as little as 8 of them be more than 30 days delinquent can throw the loan out of Fannie Mae eligibility for financing. This has been huge over the last couple of months because the bank/asset managers are often not paying the regime fees on the properties they foreclose on and they only get paid once the property sells to a new owner. HINT – A Limited Review does not ask this question buyers can potentially avoid this obstacle by putting down a little more money on the property if it is a primary or a second home purchase and avoiding the full condo questionnaire.

Apparently condo financing issues are impacting purchases and those looking to refinance all over the state. What has been your experience? Tell us your story or add new information.

May 25, 2009

Foreclosures and Short Sales…..Cash Money is Not the Answer!

Foreclosures and short sales seem to go hand in hand with bad economic conditions. According to RealtyTrac.com there are over 1,500 properties that fall into the foreclosure, pre-foreclosure or short sale category in the greater Charleston area. WOW!

What does this mean? Yes, it means people have lost their homes. It also means that banks are holding property and that there are an inordinate amount of great values in the marketplace. As with any bad economy, the way to get it jump started is for people to start buying again. Right now, interest rates are low, inventory is plentiful and the prices are right.

So now you have to know ~ what is the difference between foreclosure and short sale? Believe me, if I had a dollar for everytime I've been asked int he last 6-months, I would retire. Many people and unfortunately agents alike are not versed on the benefits, pitfalls and process in dealing with either.

So here we go? Foreclosure means that a bank or lender has taken over ownership of a home because the homeowner couldn't make the mortgage payments. Real Estate Owned (REO) is another term used for foreclosure. In a short sale scenario, the homeowner can avoid foreclosure by selling the home for less than is owed on the mortgage. Let me tell you up front, the short sale process in not an easy road to travel and banks and lenders usually take their sweet time.

Given that in a short sale a portion of the amount owed is forgiven, certain conditions must be met for the short sale to move forward.

The lender has to agree to accept less money. (A banker agreeing to loose money – hmmmm?)
Owner must have to prove he/she simply can't pay. Break out the documentation becuase without it, well, you have a better chance of seeing snow in the tropics.

One thing to note, a short sale is an easier pill to swallow as it reflects on your credit score compared to a foreclosure.

Of course, buyers of short sales get great deals. The local real estate market gets some much needed relief on negative pressure on home values if the home is sold through a short sale process rather than being foreclosed.

Here is the catch, short sales require patience and a realistic approach to how low an offer should be made. There are enough sources of information throughout the web and of course through your realtor to do your homework. Offer the right price and get a great deal!

Bargain hunters beware, CASH MONEY doesn't mean the bank is going to accept an unrealistic offer. If you are looking for a quick deal, short sales are not for you. Sometimes it could a few months before you hear back from a bank. If you are emotional and impatient maybe a foreclosure is better suited for your personality.

What has been your experience? Good, bad, frustrating, smooth?

Author: ICNDadmin