QUICK FACTS ON THE CHARLESTON REAL ESTATE MARKET

Our market was generally healthier in 2010 than in 2009. Here are some facts for the Charleston MLS area that were recently published by the Charleston-Trident Association of Realtors:

No. of Closed Transactions: 8,649 (Up 5.2% from 2009)

Median Sales Price: $188,979 (Up 3.0% from 2009)

Average Sales Price: $266,106 (Up 4.7% from 2009)

Days On Market Until Sale: 107 (Down 4.8% from 2009)

• Single Family Detached: 106 days
• Condos/Townhomes: 146 days

Percent Achieved (Sales Price/Original List Price): 90.6% (Up 1/9% from 2009)

• New Construction: 96.0%
• Pre-Owned Homes 88.6%  

Months of Supply at Year-End: 10.9 (Down 18....

WELLS FARGO RELAXES CREDIT SCORE REQUIREMENTS

Wells Fargo announced last week that they will consider issuing mortgage loans to buyers with lower credit scores.

FHA loans are usually requiring a 620 middle score and will lend up to 96.5% (3.5% downpayment) Conventional loans usually require a minimum 10% downpayment. 

As of last week, Wells Fargo was the only lender to have relaxed their requirements to:

• Credit scores from 550 (with a 5% downpayment)
• Credit scores from 500 (with a 10% downpayment)

This will allow some buyers that may have had some problem with their credit but are still "good risk" to borrow money for a home purchase. These loans will be manually underwritten, s...

FHA Extends Anti-Flipping Rule Exception 

"With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. Early last year, FHA temporarily waived this regulation through January 31, 2011. FHA this week posted a notice extending this waiver through the remainder of 2011. This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold throughprivate sales. It will allow homes to resell as quickly as possible,

TOP TEN REASONS WHY WE WOULD CHOOSE NOT LIST YOUR HOME

Why would we say such thing? After all, aren’t all Realtors supposed to list whatever they can, whenever they can?  

You see, we believe that transactions must be Win-Win for all the parties involved. If we list your home and are not able to sell it, you will still have your home to sell, we all wasted a few months, our relationship with you suffers, and our reputation as professional, effective agents may take a hit. This is a lousy long-term business strategy!

Professional, effective and efficient Realtors must be very careful about which homes they choose to carry in their inventory. After all, their objective should be to SELL ...

Bank of America announced it is launching a new loan program for medical professionals

The Doctor Loan from Bank of America is for licensed, practicing physicians or residents, dentists or other eligible medical professionals. It features a range of fixed and adjustable rate loans and offers significant advantages including:

• As little as 5% down on mortgages up to $850,000
• Employment start date up to 60 days after closing
• Student loan debt excluded from total debt calculation

Bank of America joins SunTrust in targeting this segment (see below).

The Doctor Loan Program is a residential mortgage loan developed specifically for Licensed Residents/Interns/Fellows and Licensed doctor...

Woo hoo, I love getting testimonials like this one!

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" To Whom It May Concern:

About a year ago, I faced a personal hardship and a dilemma of what to do with my condo, since I could no longer afford it. Given my financial situation at the time, I thought I only had two options: Sell it or let it go to foreclosure. I was not aware of any other options for someone in my situation.

At that time, I contacted Alan Donald to get his advice. He explained very thoroughly all the additional options available to me, including the pros and cons of each scenario. This information was very useful to allow me to reach a final decision. After evalu...

Foreclosure Myths

There always seems to be a "hot topic" that draws the public's attention. In the last 2-3 years foreclosures have taken over the media and it seems that every day there are news and articles written about this topic. I recently read an article on Trulia.com that mentioned some of the interesting myths around foreclosures:

1. Foreclosures Happen Quickly 
   Not necessarily - in many states the foreclosure process takes at least 6 months. However, the Home Affordable Program of the Obama Administration, while it has not prevented many foreclosures, it did slow them down. It seems that all parties (the banks, the government and the homeowners) want to delay the process rather ...

Bank of America announced this week that they were freezing all their foreclosure processes until all the foreclosure documentation had been reviewed. 

In its most recent report to shareholders, BofA disclosed that it solf $453 million in foreclosed properties during the second quarter of 2010. It still has an inventory (REO's) of $1,740 million worth of foreclosed homes it needs to dispose of.

Bank of America is the fourth lender that has temporarily halted foreclosures pending review of their documentation. The government is increasingly concerned that lienholders may not be carrying due process and correct documentation for their foreclosures, and lenders like BofA want to make sure ...

Today I listed this great 3 bedroom, 1.5 bath townhome that was extensively renovated 2 years ago, including new siding upstairs, new roof, new windows and exterior doors, engineered hardwood floors downstairs and complete kitchen re-do including new cabinets, stainless steel appliances and granite countertops.

Nestled in a group of quaint townhomes and single family homes, this home is located centrally, with very easy access to I-526, schools, restaurants and Town Center Shopping. A 15-minute drive will take you to Downtown Charleston or to the Airport, Charleston AFB and Boeing. 

Real lane access provides 3 spaces to store your vehicles or boat. A fenced backyard provides privacy and...

Why not be foreclosed? Why sell short?

Experienced professionals provide this list of reasons:

• Avoid the foreclosure stigma– Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item. 
• Protect credit score– Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much. 
• Improve eligibility for a government insured loan– The homeowner will be ineligible for...

My friend Chris Bavosa of East Cooper Termite and Pest Control sent me this article he wrote about rodent infestation, which I thought would be interesting to share...

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Summer is coming to an end. The weather will soon turn colder and the days will grow shorter. East Cooper residents have sent their children back to school. All these mean one thing to East Cooper Termite and Pest Solutions…RODENTS. These furry little friends will start looking for places to stay warm during the winter. Insulated crawlspaces, attics, garages, and wall voids may become a residence for the Norway or Roof rat. The white footed mouse may show up close to Halloween and nibbl...

The Charleston Battery, our local soccer team, is playing against the Richmond Kickers this Saturday, August 28 at Blackbaud Stadium on Daniel Island for the USL-2 league championship!

Tickets are priced from $10-$18 and can be purchased online or by calling 843-971-4625. Gates open at 4:30 p.m. and kickoff is slated for 6 p.m.

We hope the Battery takes the home field advantage and gets a victory - let's go and support our local team - Go Battery!

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POST GAME NOTE: The Charleston Battery defeated the Richmond Kickers 2-1 and became the USL-2 League Champions! 

Tips for Buying Lender-Owned Properties (REOs)

by Alan Donald, Team Leader, BuyHomesInCharleston.com

Every buyer in this market wants a bargain! And while you may want to hit the jackpot by buying foreclosed properties – those homes that are offered as real estate-owned (REO), lender-owned or corporate-owned properties - it is essential to understand the differences between buying a “regular” listing and buying an REO.

Lenders are not in the business of owning real estate. Once they decide to foreclose on a home and on-sell it, they are looking for:

• More Money
• More Certainty
• Less Time
• Minimum Additional Investment

In addition, you should know that:

1. REOs are normally PRIC...

This new SHORT SALE listing is a 3 bedroom, 2 bath Duplex in The Gates @ Wescott Plantation, Summerville. It just needs a little TLC (paint, cleaning) and you could buy this home and end up paying less than rent! Dorchester II schools, easy access to Charleston International Airport and Boeing. 

Great for investor or owner-occupier with patience - short sale may take some time...

More details...

Are Lender-Owned Properties (REOs) Smart Options for Buyers?

By Alan Donald, BuyHomesInCharleston.com

It seems that one out of three properties in the Charleston Metro Area is either a SHORT SALE or an REO (*)

(*) An REO (Real Estate Owned) is a lender-owned property - a property that has already been through foreclosure and is being offered for sale directly by the lender after taking control of it. 

Normally these properties are offered at very attractive list prices, so many of those properties offer terrific buying opportunities. But, like the old saying says: "Don't judge a book by its cover", there may also be challenges associated with buying REOs. Here is a list of potential p...

As of today, there are only 5 months' inventory for homes under $350,000 in Belle Hall (there are 22 active listings and we are selling about 4 a month). This segment of the market is now in what we call a "neutral" market, where both sellers and buyers are at a level playing field. If inventory drops below 5 months we will see prices start to creep back up, as it will turn into a "Buyers'" market...

See Belle HAll listings and recent sales at www.MyBelleHall.com

Tax Credit Closing Deadline Extended
After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623).

The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed.  The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010.  There is will be no gap between June 30 and the date the President signs the bill into law.

For additional information on the extension, click here.

Flood Insurance Restored
Additionally, the United States Senate has...

Boone Hall, the historic plantation in Mount Pleasant (Charleston, SC metro) is holding its annual BOONE HALL BEACH BLAST this Saturday, from 11 am until 10:30 pm.

This fun event is packed with activities: Shag lessons, beach volleyball, a bikini contest and ongoing music concert that kicks off at noon and includes artists such as Maurice Williams, The Zodiacs, The Sugarbees, Mystic Vibrations, The Fantastic Shakers and The Tams.

Tickets are $20 in advance, $25 at the gate. Gates open at 11 a.m. and close at 10:30 p.m.

BIG WEEKEND FOR MUSIC AND EVENTS IN CHARLESTON

Multiple events as part of Spoletto, Piccolo Spoletto and other musical events anticipate a terrific week in Charleston's art and music scene - including:

June 4 - Piccolo Beach Music Bash Block Party (Marion Square)

June 4 - Charlton Singleton Sextet (McCrady's Restaurant, Downtown Charleston)

June 4 - Satin Dolls String Quartet (Bethel Methodist Church)

June 5 - Barenaked Ladies (North Charleston Coliseum)

June 6 - Chris Daughtry (North Charleston Coliseum)

June 10 - Tony Bennett (Township Auditorium)

LAST MINUTE HICCUPS...!

In our own experience, and also through our discussions with fellow Realtors, it appears that recently about 8 out of 10 purchase transactions have had "last minute" surprises  that may have delayed or upset the closing in some shape or form. 

Normally, these "hiccups" are due to the financing. Underwriters (and transaction auditors, a second "firewall" established recently by a few large banks) are under the gun and are checking and re-checking all loan applications with a fine tooth comb SEVERAL TIMES.

Due to either the lenders' understaffing or lack of adequate systems, these hiccups tend to surface within a few days before the closing (it is not unusual to s...