Posts by : Alan Donald

Using Renovation Loans

USING RENOVATION LOANS

Given the proliferation of short sales, foreclosures and lender-owned properties (REOs), it is not uncommon for buyers to come across homes that may be very well price (a "steal") but need substantial renovation work to bring them up to the desired quality and functionality level. 

Many of these homes have been neglected for a long time: Initially their owners (who experienced a financial hardship of some nature) did not have the money or the inclination to do normal maintenance and upkeep. Then the home is normally vacant for a period of time, while the lender takes it to foreclosure and resolves all the legal title issues to be abl...

Mount Pleasant, SC – A Thriving Community!

The Town of Mount Pleasant, SC recently published their “2011 Demographic Report” which has some interesting facts which make this town:

Growing and aging: Population has increased from 47,000 to 67,000 (42%) in the last 10 years! Population over 25 years of age has increased to 47,000 from 32,000 (46.8%)
Smaller households: # of Households has increased from 20,000 to 30,000 (50%)
Shifting Racial Diversity:

• White 91.3% (up from 90.2% in 2000)
• African American 5.1% (down from 7.3% in 2000)
• Asian 1.6% (up from 1.2% in 2000)
• Other 0.8%

More Educated: 61.8% of the population 25 and over has a bachelor’s degree or higher, compared to 5...

Mount Pleasant Real Estate: Doing Better Than We Think!

We keep hearing about how terrible our market is, how prices have tumbled, etc. The graph of Median Home Price for Mount Pleasant on Trulia.com since the year 2000 (see below) tells another story: According to this graph, the picture is not so bleak: We are back to 2004-2005 price levels! Which brings us to the point of this article: Real estate should NOT be considered a liquid asset, bricks and mortar should be considered a LONG-TERM investment. One big difference between real estate and stocks: Real estate has an intrinsic utilitarian benefit that stock lack - you can live in it or rent it out (it also has some "carrying costs":...

HOW TO WIN IN A “MULTIPLE-OFFER” SITUATION

You and your REALTOR® have spent many hours “weeding out” potential homes for sale and finally find the home of your dreams: It is priced right, perfect size, location, features, etc. and you don’t want to miss out on this opportunity, so you go see it as soon as it is listed… and then, while you are walking through, two other parties arrive to view it. So you have competition (no surprise, since well-priced homes are still selling well!). It is pretty obvious that, even if you write an offer immediately, the listing agent will call your agent to say that there will be multiple offers. How can you improve your odds that YOUR offer is the one acc...

THE RISKS OF BUYING DISTRESSED HOMES, FORECLOSURES AND REOs!

It seems that every time we meet with new buyers, the first word that comes out of their mouth is “foreclosures”. Buyers have been bombarded with news about the “state of the market” and the amazing buying opportunities that are available to them. Many buyers are not aware that there are three “stages” that a distressed property goes through, and that each of these may present different challenges and opportunities. Here is a summary of these stages:

1.      Stage 1 – Pre-foreclosure

When the homeowners experience a hardship that prevents them from keeping current with their mortgage payments, they normally start exploring re...

Freddie Mac Summer Promotion on Foreclosed Homes

In an attempt to lower their inventory of foreclosed homes ASAP, Freddie Mac recently launched a promotion to attract buyers and their agents.

With this promotion Freddie Mac (Homesteps) offers to pay up to 3.5% of the purchase price toward buyer's closing costs and a bonus to their selling agent for contracts (from owner occupiers only!) ratified from May 16th until July 31st, 2011 that close on or before September 30, 2011. 

Also a two-year limited Home Protect home warranty that covers electrical, plumbing, air conditioning, heating and other major systems and appliances, plus up to 30% discounts on appliance purchases is available fo...

I just finished watching a webinar put together by the South Carolina Association of Realtors on a new program called SCHelp, designed to assist homeowners who are facing hardship and are (or will be) behind in their mortgage payments. The SCHelp program received a large grant from the Federal Government and has three kinds of assistance programs:

1. Monthly Payment Assistance. If you lost your job, the program can help you make your mortgage payments for up to 12 months while you find new employment.
2. Direct Loan Assistance. If through a hardship you fell behind in your mortgage payments, but now you have regained your ability to pay, this program helps you bring your loan current and pa...