Only 9 Weeks Left!

If you are a first time home buyer and want to be eligible for the $8,000 Federal Tax Credit when you purchase a primary home, there are just 8 weeks left to CLOSE the transaction!! (unless Congress extends the deadline, this tax credit expires on December 1st, 2009). This means you better get cracking! You will need to find a home, negotiate a contract, do your buyer's due diligence and get your loan approved before you can close!!

If you are in this situation and need to buy a home urgently - please contact me ASAP! We can still do it....

TO "LOCK" OR TO "FLOAT"?

It is very important for home buyers or for those who want to re-finance to be aware that in these volatile financial markets we are living in, interest rates on mortgages can fluctuate substantially in a matter of hours! I have heard many stories from mortgage lenders about how they were able to lock a fantastic interest rate for a loan using a 2-3 hour "window of opportunity" that disappeared afterward, or others that missed out because they floated the loan (to "float" means to let the interest rate fluctuate with the market). Understanding how "locking-in" a rate works may help you evaluate your options and could result in thousands of dollars in savings!

So...

...Renting...?

...Credit score above 660...?

...Wish to BUY now to take advantage of market conditions, low interest rates and the $8,000 TAX CREDIT...?

If we believe everything the media throws at us we would be 100% sure that there are no more 100% loans available for buyers! However, that's not the case...A few banks still have a 100% loan programs for buyers with good credit scores (660 and up).

Interested? Contact me today! I'll help you buy your dream home with no money down...

Our oldest son Kai goes to college tomorrow. On the one hand, I am glad he's making his own future now. On the other hand, I know that I am not going to enjoy any more high school soccer games, and will have fewer Apples-to-Apples and ping-pong challenges with him gone...in any case, we know that there is now a spare bedroom in our home (until he comes home during the holidays!)

This got me thinking about life, and the cycle for real estate ownership. Normally people don't start thinking about investing in real estate until they get married or kids come along.  Only the smart ones see that real estate is a great long-term investment and start early, as soon as they graduate from colleg...

With all the hype about short sales and REOs (lender-owned) homes, I thought that it was useful to put things in perspective (at least for Mt. Pleasant). Here are the numbers (as of 8/13/09) taken from the MLS:

• Total No. of Single Family, Detached listings (Active, Contingent and Pending) in Mt. Pleasant: 1,165
• Number of these listed as "Possible Short Sale": 120 (10.3%)
• Number of these listed as "Lender-Owned": 12 (1%)
• Number of these under Contract (Contingent and Pending): 167 (14.3%)

• Total No. of Condo & Townhome listings (Active, Contingent and Pending) in Mt. Pleasant: 525
• Number of these listed as "Possible Short Sale": 58 (11.04%)
• Number of these listed as "Lender-Own...

Buying Opportunities with Foreclosures

In Part 1 we discussed the different stages of a foreclosure which could result in buying opportunities. Here we explore the different opportunities and risks involved in each stage.

Today's buyers seem to be more focused on the short-term goal of "getting a deal" rather than on the long-term lifestyle improvement and savings goal of home ownership. However, in the "frenzy" created by the media about buying foreclosure homes, there are some serious pitfalls that should be considered that may result in unforeseen challenges for the average buyer.

1. Pre-foreclosure (Short Sales). In my opinion, one of the best avenues to find well-priced properties...

I read this article in the Daily Real Estate News today which I agree with!

"Daily Real Estate News | August 3, 2009 

There's no ultimate answer to this question, but Tribune Media Services columnist Ilyce Glink has a theory. Here are her six top reasons properties linger on the market:

1. Lousy pictures on the Web. 
2. Priced too high for the neighborhood. 
3. Blah interior; ho-hum landscaping. 
4. Little online marketing and hard-to-find MLS listings. 
5. Low commissions. Practitioners make sure their customers see properties that offer a payoff. 
6. Miserable maintenance, including ceiling stains, leaky faucets, and ancient furnaces.

Source: Tribune Media Se...

Keli McClarty from Atlantic Bank sent me a copy of this article, that I believe synthezises the new changes effected recently on the mortgage industry, and which are essential to keep in mind when buying or selling real estate:

The bottom line is that the new rules are all about giving the borrower time to decide if they want the loan they applied for at the time of application.

RULE:  Borrowers have 7 days from the "official" application (meaning they must have a property address) before they can close the loan.

TRANSLATION: Rush closings are a thing of the past - even if a file is transferred to you from another mortgage company.

RULE: A Good Faith Estimate must be sent within 3 day...

I found this 2006 article from writer Tom Austin in Travel & Leisure Magazine that contains a very interesting and vivid description of the juxtaposition of the old and the new in Charleston, SC.

Click here to read the article....

The popular Travel and Leisure Magazine World's Best Award has just ranked Charleston (SC) their No. 4 city in the U.S. and Canada (behind New York, San Francisco and Chicago). This is not the first time our Holy City receives such an award, in 2007, Charleston had already ranked #6 and in 2006 it had also ranked #4.

This is a great honor for such a small city to be compared against some of the biggest and most cosmopolitan cities in the continent!

Travel & Leisure comes up with the ranking after an online survey is posted for three months, where respondents rate services like hotels, spas, cruise lines and restaurants on value, ambience and customer service. A minimum number of entries...

BUYING FORECLOSURES (Part 1)

Foreclosure is the legal process by which lenders (lien holders) recover the amount owed on a loan that is in default by exercising their right to repossess the property that secured the loan as collateral ("no pay, no stay clause").

The foreclosure process varies slightly from state to state, but it usually has the following steps:

PRE-FORECLOSURE
1.The homeowner (borrower) stops paying the mortgage
2.The lenders send the borrower a default notice, explaining the consequence if the borrower does not pay the owed amount plus late payment penalty.
3.The lenders hire an attorney to process the foreclosure and file a public notice ("lis pendens") announcing thei...

An incredibly expensive home just hit the Charleston MLS:

32 LEGARE ST. South of Broad (Downtown Charleston) was just listed for $23 Million! Maybe this is not a big deal in New York, San Francisco or Los Angeles, but for Charleston this is a huge price! More details here...

The National Association of Realtors has sent us an interesting article answering many of the most common questions we are being asked about the Tax Credit for first-home buyers. I decided to copy it here to make it available to my clients:

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?
First-time home buyers who purchas...

Showings are at an 18-month high in Mt. Pleasant and also in Dorchester County (Summerville), according to data compiled by Centralized Showing Service, which records all showings booked for REALTORS via the MLS. Charleston (West Ashley) and areas of Berkeley County also exhibit a similar patter (see graphs). Because showings are an indicator of the level of buyer interest in the market, it can be used as a predictor for future sales, which will normally show up 2-3 months later. Many factors may be contributing to this uptick in showings: Families are back from summer holidays, interest rates are still low, prices have continued to drop, and the $8,000 First-time Home Buyers' Tax Credit ...

This is the last part of our brief guide for first-time home buyers in South Carolina. Once you have closed on the purchase of your home, you will still need to take care of some very important details (in addition to your move):

1.Change all the utilities in your name. Usually sellers stop their accounts as of the closing date, sometimes they give you 1-2 days grace. The last thing you want is to get to your newly purchased home and find the power is off, and the temperature outside is 98F...

2.Re-key all exterior doors. Although the sellers may have seemed very nice, you never know who else has keys for the home. Don't forget to re-program the garage door openers!

3.If there was a tr...

The Real Estate Closing 

You have finished performing your Buyer's Due Diligence and everything's lined up for a closing on a specific date and time (usually at the attorney's office). What happens at this "closing"?

A "real estate closing" is the name given to a completion of the real estate transaction, including legal (title) and financial (loans & mortgages) aspects. It is an event that normally takes about an hour, in which normally all the parties are present (the sellers and their listing agent, the buyers and their buyer's agent, the closing attorney, and in some instances the loan originator). The parties each sit facing each other, and the attorney will explain the process and...

 Great central location, 8 minutes to Downtown Charleston and yet away from it all! Solid brick home with traditional floorplan on quiet, marshfront,on quiet, marshfront, cul-de-sac lot in smaller, friendly neighborhood. As you walk in you will see the living and dining areas with hardwood floors and wainscoting. Facing the marsh you have the upgraded kitchen - with tiled floor, new granite countertops and stainless steel appliances, connecting with ample eat-in area and the family room with a fireplace and built-ins. Home was just repainted upstairs. The roof was upgraded this year with architectural grade shingles, and the top floor air conditioning unit had the coil just replaced. Bath...

The A-Z of Buying a Home (Part 3)

You found a home, negotiated a favorable contract ("ratified" = signed & delivered). You are supposed to close in 30 days. What now?

This period from contract to closing (also known as "escrow" in some states) is critical for the buyers to do their due diligence. This means investigating everything they want about the home including the bricks and mortar, the title, the neighborhood, etc. to their satisfaction. It is also the time to formally apply for the loan (you may have shopped around with different lenders before you got pre-approved by one of them. You do not necessarily have to use the same lender, but cannot hesitate to submit a formal applicat...

The A-Z of Buying a Home (Part 2)

by Alan Donald, BuyHomesInCharleston.com

OK - so you've hired a REALTOR, discussed your needs and buying criteria and got preapproved by a lender. Now it's time to go see homes! Although it is a relatively small city, the Charleston Metro Area is very large, with hundreds of neighborhoods, areas and subdivisions each with a different style, construction, lot size and price point. 

Step 4 - The Home Search

The home search is a collaborative effort between you and your REALTOR. If you are comfortable "sharing the news", make sure that you mention to everyone in your sphere of influence that you are looking to buy a home. It is impossible to know where y...

This guide for first-time home buyers is intended to provide general information to help buyers be aware of the buying process, and to dispel any myths about buying a home. Please discuss your particular situation with the appropriate professionals before making any decisions.

So, You want to Buy a Home?

Since buying a home is a BIG financial commitment, many first-home buyers (and some repeat buyers) feel very intimidated by the whole process, which, in itself is rather uncomplicated, but it involves a lot of small steps, that, if not done right, can produce expensive mistakes.

In my 12 years in Real Estate I have dealt with many types of buyers and different scenarios, so I have deve...