Posts by : Alan Donald

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...

This home seems like a great bargain!

Custom-built, with lots of upgrades, on a great lot, relatively easy access to I-526. Would make a great home for a Boeing executive! Only $125 per square foot!

Author Jay Papasan presents an update on the real estate market in this video, which discusses the effect that the $8,000 First-time home buyer's tax credit may have had on the real estate market in the U.S.

Mother's Day Special!

As we celebrate Mother's Day across the Western Hemisphere, one has to wonder why we call a house a "home"?...

Here's Wikipedia's definition of "home":

"A home is a place of residence or refuge comfort. It is usually a place in which an individual or a family can rest and be able to store personal property.........As an alternative to the definition of "home" as a physical locale, home may be perceived to have no physical definition--instead, home may relate instead to a mental or emotional state of refuge or comfort."

So what is it that makes a place (i.e. a house) a home? I would venture to say that we owe our mothers the creation of the "mental and emotional s...

Kiawah Island and Wild Dunes took the No. 1 and No. 2 spots respectively in the “Top 100 Tennis Resorts and Camps for 2010″ ranking made by Tennis Resorts Online.  This is the second year in a row that Kiawah takes the top spot.

These rankings are very significant, considering that they are compiled from surveys made to real tourists who stay at these resorts (i.e. from the users’ perspective, not some industry association’s).

Is Arbitration for Real Estate Always Enforceable in SC?

Attorney Clay Olson recently published a blog post analyzing a recent decision by the SC Court of Appeals in the matter of Faltaous v. Anderson Ocean Club Development, in which the "mandatory arbitration" clause was denied by the court. 

According to Olson, this means that SC courts may not enforce the mandatory arbitration as a matter of course, and it will depend on each individual case, and how specific the language to be enforced reads. 

Bottom line: Builders and real estate practitioners need to get sound legal advice on how to word arbitration clauses properly if they want them to be enforceable in SC. 

Read the whole arti...

BARGAINS OF THE WEEK

Many savvy buyers are stalking their prey as the real estate market tumbles down, supply and demand driving prices to market equilibrium.

Many people have lost their homes (whether because of a job loss, or high leverage), and although this is sad and affects whole communities, it also brings opportunity to buyers who may not have been able to afford to buy a home (or their ideal home) during the heyday of the real estate boom.

Market opportunities come in many shapes: Short Sales, Foreclosure Auctions and REOs (Real Estate Owned, Lender-Owned). Savvy buyers and investors are waiting for that opportunity to buy a real bargain-priced home that they can renovate or h...

BEWARE OF REMODELING PROJECTS!

When lenders toughen their standards and the housing market is challenging for sellers, many homeowners will choose to either add or remodel their existing home, instead of changing it for a new one to satisfy their needs. Many builders have chosen not to build any new "spec" homes and focus on remodeling and additions instead.

Many homeowners are unaware that of the zoning laws, building codes and neighborhood restrictions governing renovations and additions. Most projects will require permits and official inspections to satisfy federal/state/county/city regulations and neighborhood covenants and restrictions.  Failure to comply with due process may resul...

FLOOD INSURANCE

Federal funding for the National Flood Insurance Program expired back in February, and Congress has let it lapse several times this year.

Last week Congress passed (and President Obama signed) a 2-month extension for this program, which is essential to get FLOOD INSURANCE for homes.

The flood insurance program is administered by FEMA and Congress needs to appropriate funding to extend its funding. But since they have been busy with other topics (and their 2-week vacation!), Congress has let it lapse several times this year, patching up the hole with temporary extensions.

Right now, if you wish to purchase flood insurance, you will only be able to do it until May 21st.

GOLF - LARGE YARD - UPGRADES - GATED COMMUNITY - AMENITIES

It is a pleasure to list homes when the owners have taken great care of their home, and this one shows like a model home!

This new listing in Dunes West (Mount Pleasant) offers affordable comfort and elegance a large yard and access to all the neighborhood amenities of this luxury, gated community. 

 More details here...

Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, and the first-time home buyer tax credit.

The home price-to-income ratio continues to remain well below the historical average of 25 percent. The ratio now stands at 14.2 percent.

Would-be buyers should consider their COST to buy and not only the PRICE of the home. While it is true that we may still not be at the bottom of the market in terms of prices, any increase in mortgage interest rates (and rates ARE under pressure to increase) could erase any potential gains from waiting to buy at the very bottom of the market.

So, Are We Better Off in Healthcare Now?