772 Clearview Dr - Don't let the modest front fool you. This is a dream home.

My company just listed this gorgeous house on James Island with breath-taking views of the Charleston harbor and Cooper River Bridge.

Gorgeous views of the harbor and bridge

Apointed in true European style, this home has 180 degree views of the harbor from the living room, dining room, office and Master bedroom.

This could be your new home office Relax by the pool, soak in the hot tub while enjoying a perfect sunset.

This 3 bedroom, 2.5 bath listing is offered at $1,399,000.00.  Dock permit is available.  For a private showingm call or text me today. 843 276-1618.

Two other great investment areas to pursue are company relocations and estate sales.  These are also owned by companies or familes that have no desire to hold them longterm.  That eagerness to move the property equates to better pricing and more equity, i.e. more wiggle room on the price. For an area specific list, give me a call.  Otherwise, click the link below to see all of these REAL DEALS.

All of these homes are being sold as post-foreclosures, estate sales and/or corporate owned homes. That means that they are priced more aggressively than other homes. These are the REAL DEALS.

Things to know before you look:

1. These homes usually need a lot of TLC, sometimes even structural repairs.
2. They are usually sold within 45 days because they are priced to move!!!
3. Buyers are usually responsible to pay for all inspections and sometimes some of the closing costs usually paid by the seller. This doesn’t cost that much, about $500-$1000 more on average, but it’s worth knowing up front.

When you sell a house in a buyer’s market, a lot of things work against you. Your real estate listing shouldn’t be one of those things. Find out what buyers and their agents typically see as a red flag in a listing and how to avoid them.

Red Flag: No Photos

Including photos in the listing should be a no-brainer, but sellers routinely list properties without pictures, and they do so to their detriment, says Don Tepper, a Realtor with Long & Foster in Burke, Va.

“One red flag in many buyers’ eyes is the lack of photos for a listing,” Tepper says. “There can be some legitimate reasons for few (or no) photos in a listing: The sellers want privacy, or they have valuables they don’t want in the photos. But many would-be buyers — rightly or wrongly — assume that there’s something wrong.”

Tepper says it’s a good idea to have about a dozen photos. But that number isn’t a hard and fast rule. You want to convey a good sense of the property by ensuring the pictures match the description and showcase the features you highlighted. If the listing emphasizes a great view, it pays to have a photo of the view.

Red Flag: Lack of Transaction Details

In the last few years, buyers have had a crash course on buying distressed properties, whether short sales or foreclosures. But that experience hasn’t always been good, and according to Karl J. Trommler, business development manager for PenFed Realty in Reston, Va., a big red flag is a distressed property listing without transaction details.

“When the listing says it is a short sale, but does not address whether or not the lender has been informed and approved of the price, it can be a big red flag,” says Trommler, who cautions against getting involved when the listing language refers to third-party approval, but fails to identify that party.

[America's Most Crime-Ridden Cities]

Simply put, the more parties involved in the transaction, the more complicated. Short sellers who are able to be upfront about the deal stand a far better chance of attracting the right buyer at the right time, Trommler says.

Red Flag: Hyperbole

A listing that claims to offer the very best property on the market might not do the seller any favors, says Ziad Najm, a broker at Cedar Real Estate in Mission Viejo, Calif. He cautions against outlandish and hyperbolic claims.

“While creativity should be maximized to market a listing, these claims can be highly subjective and can be interpreted in many ways by different buyers,” Najm says. “Some buyers may be turned off to begin with and some will inevitably be disappointed if the claim doesn’t live up to their expectations.”

It’s a fine line, but according Najm, sellers do well to stay away from superlative claims. So rather than describing the house as “the best,” a more sensible strategy is to focus on adjectives that are flattering, but leave room for other opinions.

Red Flag: Price Too Good to Be True

A low price sounds like a great way to attract buyers, but if you go too low, there’s a chance your strategy can backfire. When a seller’s agent suggests such a strategy, the homeowner should be on guard.

“Typically, multiple buyers will be attracted to the low asking price and eventually the sales price will climb close to market value as competing offers bid up the price,” Najm says. “However, the strategy is not without risk in that some buyers will be alienated by a potential bidding war.”

[Houses For the Price of a Car]

Even more worrisome is the possibility that a low price will attract unqualified buyers looking to snatch up a bargain. If that happens, the house won’t sell at all, and the seller will have devalued the property with a low listing price.

So if you’re going to gamble on a low listing price, Najm says, “it’s very important to have a solid knowledge of market conditions before using this kind of high-risk, high-reward strategy.”

Red Flag: The Flipper

Believe it or not, phrases such as “newly remodeled” and “recently updated” can be red flags to some buyers because they could indicate that the seller is out to flip the house. That’s not necessarily a bad thing, but sellers should work to highlight any improvements while being careful not to present the home as a flip, according to Vince Clingenpeel, whose Clingenpeel Properties in Falls Church, Va., inspects homes on behalf of buyers.

“The biggest fear I have for buyers is the flip,” Clingenpeel says. “In my experience, one out of 20 is properly executed with proper permits.”

While a lack of proper permits might mean a headache for a buyer, Clingenpeel reports that buyers of flipped homes sometimes find that the quality of the work done is “horrendous.” So if you’re selling a newly remodeled home, make sure to emphasize that the work was properly permitted and executed at a level any homeowner would be happy with.

Red Flag: “As Is”

Selling a property “as is” isn’t all that unusual, and it shouldn’t be a deal breaker. But when you see the term in a listing — especially these days — it can be a reason for caution, says Diane Conaway, a San Diego broker with Re/Max United.

[America's Foreclosure Hotspots]

These days, “as is” can mean “previous owners stole everything including the kitchen and bathrooms,” Conaway says. “Our contract states ‘as is’ anyway, but some agents restate that in the listing, which is a disservice to their sellers.”

While listing a property’s shortcomings has its drawbacks, Conaway believes it’s better to include obvious improvements a buyer will want to make, rather than saying “as is.” If it’s clear that the house needs new carpet, Conaway says it’s better to just say so because any serious buyer will likely use that as a negotiation point anyway. But if you list the property “as is,” you could make the buyer think the worst.

By David Slade
Sunday, January 16, 2011

Somewhere, there are people interested in buying a house to call their home.

Not a house to flip, rehab, rent or tear down, but to live in.

And somewhere in the land of existing homeowners, aside from the millions who owe more than their homes are worth, there are those with enough equity in their residences to refinance.

These people find themselves in a rare moment in history: house-hunting or refinancing amid the wreckage of a historic real estate meltdown. Tougher lending and credit standards have made it harder to buy, and the plunge in real estate prices has left many homeowners unable to refinance. But those who qualify can borrow money at the lowest interest rates in generations.

In both cases, the bottom-line math is fairly simple.

–Lower interest rates mean lower monthly payments, and a larger share of each payment goes toward reducing the debt rather than interest costs.

–A shorter loan term means higher monthly payments, but lower interest costs, and the loan gets paid down faster.

–A longer loan term means lower payments, but greater interest costs over the long-term.

The question for many buyers and refinancers is: Which way are interest rates heading?

On the financial pages there’s much debate, with the majority of experts calling for rates to rise.

Indeed, mortgage loan rates hit new lows in November, then bounced up a full percentage point by mid-December before easing again.

Here’s what that can mean: On a $200,000 30-year mortgage, the difference between a 4.5 percent and 5.5 percent rate is $123 a month. That’s worth $44,000 over the life of the loan. At the higher rate, the loan balance would be $2,600 higher after five years.

For anyone looking to refinance, lower payments and greater equity over time should be weighed against any upfront loan costs.

For potential buyers, low-interest rates are great, but what about the risk that home prices could continue to drop?

Before the bubble, homes were thought to appreciate slowly but steadily, usually keeping just ahead of inflation.

In the Charleston area, roughly speaking, homes worth $150,000 in 2001 were selling for $250,000 five years later, and they’re selling for $200,000 today. Adjusted for inflation, $150,000 in 2001 is worth about $185,000 today, so prices are getting closer to historic norms.

In my $200,000 loan example, the lower interest rate saves the borrower $7,380 in payments, and they gain an extra $2,600 in equity, over the first five years. Combined, that’s equal to more than 5 percent of the amount borrowed.

If the same borrower waited to buy, and the home price dropped by 5 percent while mortgage rates rose by one percentage point, they would end up making higher payments every month.

No one can say with certainty what will happen with either interest rates or home prices. But at this point the potential for rising rates should be a big consideration for anyone considering whether it’s time to buy a house.

One way to gain some peace of mind, and greatly reduce the risk of ever owing more than a home is worth, is to consider a 15-year or 20-year mortgage. The payments would be higher than a 30-year loan, but the interest rate would be lower, and you can build up equity more quickly.

Borrow $150,000 at 5 percent for 30 years, and at the end of five years (that’s 60 payments of $805, not including insurance and taxes), you’ll still owe $137,743.

Change the loan to 15 years at 4.25 percent and the payments increase to $1,128 monthly. But, in less than two years you’ll own more of the house than after five years with a 30-year loan. At the same time, the balance would be down to $110,157.

If during 2011 make payments of $600 or more to a service provider (such as a plumber, painter, or accountant) in the course of earning rental income, the 2010 Small Business Jobs Act requires you to provide an information return (typically Form 1099-MISC) to IRS and to the service provider. In order to do that, you must obtain the payee’s Name, SSN and contact information before making payment. The IRS provides Form W-9 for that purpose.

Remember this is annual payments so add up repeat visit fees

What happens if you don’t meet your filing obligation? Simple- there are monetary penalties! Also part of the 2010 Small Business Jobs Act, the penalties were doubled for information returns required to be filed after 2010. Last year, Form 1099-MISC must have given be given to the service provider by January 31 and the original mailed to IRS no later than February 28. As it was, if you were 30 days late filing the information return with the IRS or furnishing a copy to the payee, then you were subject to a $30 per payee penalty. With the new law this year, if the returns are more than 30 days late but filed by August 1, then the penalty per payee is $60; if filed after August 1, the penalty jumps to $100 per payee.

The penalties can be substantial and you are cautioned to establish a procedure for obtaining W-9s from your service providers before the beginning of 2011. Note: Payments to incorporated businesses and those made for the purchase of merchandise are not included in these requirements until 2012.
Form W-9 may be found on the IRS website.

There were 8,470 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of February 28, 2011. 

BERKELEY COUNTY
Preliminary figures show that 141 homes sold in Berkeley County at a median price of $137,000 in February.  

CHARLESTON COUNTY
Preliminary figures show that 277 properties changed hands in Charleston County in February, at a median price of $195,900. 

DORCHESTER COUNTY
Preliminary figures show that 122 homes sold at a median price of $145,000 in Dorchester County in February.

So what does that mean for you?

If you’re selling,  you need to know that we just hit 2004 median numbers.  Like it or not, that means that the foreclosure around the corner is going to negatively effect the sales price of your beautiful, move-in-ready home. Why? The simple answer:  the law of averages. 

If you’re buying, it pays to realize that the best deals out there (foreclosures, estate sales and corporate owned homes) are already priced aggressively and statistically will sell at 95% of the listed price on average.  So if you’re going to put in an offer, don’t offer 50% of price. You won’t even get the banks to respond and someone else will come in behind you and win that bid. 

Click here for a foreclosure, estate and corporate owned list.

We haven’t seen rates this low since…..1951! 

So the question remains, why aren’t people knocking each other out to get to the deals? 

I can tell you what the talking heads are saying:  jobs.   If people don’t feel secure in their income, they will not want to commit to a 30-year loan.  Makes sense if it’s true.  But is it true?   Perhaps we should compare today to 1951.

Unemployment rates in 1951 were 3.3%  and it was on the way down to 2.9% in 1953. Today they are hovering around 10%, doubled since 2007!  In addition, the 1951 economic outlook looked very positive.  We were in the post-war boom and the GI bill made home ownership extremely affordable for many American families.  Today, even post election, I’m not sure that the average person would feel more optimistic about our economic future.

But here’s the irony of the situation.  History shows us that people usually wait to invest in large ticket items when prices are going up.  Understandably, they assume that if they buy it today for $200,000, they might be able to see a profit in 1 year, even if its just on paper. 

What they fail to realize is that by waiting until prices are going up, they lose several opportunities.  First, they will inevitably pay more for the item. Why? Because now they are in competition for the purchase. Increased demand means increased price.  Secondly, when the trend swings toward increased demand, rates naturally climb. So not only does the consumer pay more principle.  They also pay a higher interest rate.

Years ago I learned a valuable lesson in Business school.  It was the Toys are Us model.  Toys are Us always ceases orders for a specific toy while demand is still rising.  Albeit, the demand acceleration is beginning to wane but to the average consumer, the demand still appears to be on the rise.  Toys are Us does this because they know that demand is beginning to shift.  It hasn’t shifted yet and they could squeeze a little more profit out of their inventory but they know that the risk of being stuck with something that is no longer in demand is less desirable than making a little bit more money in the short term.  In other words, they focus on long term gains….just like you should in real estate.

Applying that lesson to real estate investment purchases, that means that the best time to buy is when prices are still falling but not falling as fast as they were in the past.  Why? Becuase that means that we are approaching bottom.  Not AT THE BOTTOM like everyone at NAR wants you to believe, but still working our way towards the bottom.  Again, the reasoning is interest rates.  Prices are still falling and interest rates are also falling; therefore, you can still purchase something at rock bottom prices and rock bottom rates.  Yes you will probably still experience a drop in value in the first few years, but you will still gain equity because your interest rates will offset the initial purchase.

The moral of this logic.  Don’t wait for the media to tell you that it’s time to buy.  By then it will already be swinging towards a seller’s market again.  Buy on the way down, wait it out a few years and reap a bigger gain in the long run. 

That’s my two cents anyway….but of course two cents today may only be worth 1.5 cents tomorrow.

I’ve completed several successful foreclosures recently so if you know of anyone who may be looking for a great investment deal, ask them to give me a call.  I’d be happy to help.  

There have been a lot of recent headlines about the foreclosure moratorium put in place by several of the nation’s largest banks and I felt it appropriate to communicate a brief explanation of where we are and how this may, or may not, impact our market and to also update you on the latest headlines.

In short, this issue came about after the discovery that many of the nation’s largest banks had cut corners in the review of foreclosure documents which resulted in self-imposed moratoriums put into place so that the banks could undertake a self review of their own internal procedures. This was not a fundamental flaw which resulted in foreclosures being incorrectly filed, but a question as to the thoroughness of the banks’ review procedures.  Remember, South Carolina, along with 22 other States, is a Judicial Foreclosure State, meaning a Judge is required before a foreclosure can go through.  That extra level of scrutiny decreased the chances that any of the foreclosures that were in process, or those which had been completed, were faulty.

It is important to note that Wells Fargo did not impose a moratorium as they were comfortable with their internal procedures.  Additionally, Bank of America announced today that it was partially lifting a self-imposed nationwide moratorium on foreclosures in the 23 U.S. states that require a judge’s approval, including South Carolina.  Bank of America’s initial assessments, in both judicial and non judicial states, has indicated that their decisions and supporting documentation were accurate.

Answers interpreted from the SC Landlord Tenant Act  SC CODE OF LAW TITLE 

As a Realtor and a Landlord myself, I understand how difficult it may be to deal with tenant issues.  You don’t want to interfere with your tenant’s right to quiet enjoyment but you also want to protect your vested interests.  It pays to know the laws governing these issues and how to interpret them.  Here are some of the most common questions I received from my landlord clients.  Some I have personally experienced and others I just researched.

DISCLAIMER: Since I am not an attorney, you may also want to seek legal advice on your own for any of the these issues.   Better yet, Carolina One as an in house property management department that will take of everything for you and simply send you a check every month for your net rental payments.

Q: Can I withhold some of the security deposit for cleaning fees on a rental property?

A: Yes, if the cleaning necessary was beyond normal wear and tear and necessary to bring the home back to the same level of cleanliness it was at the time of the lease.

Q. Do I have to notify the tenant about the deposit not being returned?

A. Yes, within 30 days of termination.  Otherwise “(b) If the landlord fails to return to the tenant any prepaid rent or security/rental deposit with the notice required to be sent by the landlord pursuant to subsection (a), the tenant may recover the property and money in an amount equal to three times the amount wrongfully withheld and reasonable attorney’s fees.”

Q. I want to sell my rental property.  Can the tenant refuse access? 

A. No.  Provided that reasonable notice is given.

SECTION 27-40-530. Access.

(a) A tenant shall not unreasonably withhold consent to the landlord to enter into the dwelling unit in order to inspect the premises, make necessary or agreed repairs, decorations, alterations, or improvements, supply necessary or agreed services, or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workmen, or contractors.

c) A landlord shall not abuse the right of access or use it to harass the tenant. Except in cases under item (b) above, the landlord shall give the tenant at least twenty-four hours notice of his intent to enter and may enter only at reasonable times.

Cash Cow - The American way to make money

If you’re like me, chances are you’ve been drooling over the real estate inventory out there, not to mention the ridiculously low interest rates.  But if you’re sitting on a pile of cash in a bank that’s giving you .5% interest on your money, it’s time to consider moving your money into something with a better return.  You need a cash cow!

A cash cow is a business or product that generates a steady,dependable flow of cash.  In real estate, that means an investment property that will make more money than it costs to purchase and maintain over a 5-10 year period. Of course, in today’s market, most people think in more immediate terms.  No problem!

One of the silver linings of our economic downturn is that you can finally turn investment property into a steady source of income .  Of course, it’s against the law for me to guarantee you profits or specific gains, so instead I’ll simply give you examples of real properties that are currently providing a steady stream of rental income as of today.

Each of these are available for sale right now either through MLS or privately through me.

2150 Spoleto Ln B-7, $50,000: 1200 sq ft 2 beds, 2 baths, rents $685 per month

1420 Westwood Dr, James Is - $135,000. 3 bed 1 bath, Rents $850-900 per month

1558 Westwood Dr - Handyman special 3 bed 1 bath $85,000. Rent $750

700 Daniel Ellis - 1 bed 1 bath condo $125,000 Rents $850. per month

These are just a sample of what you can get today.  For more info on investment property and cash cows, give me a call.  I’d be happy to assist you.