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With the new stimulus plan just passed comes good news for First Time Homebuyers. If you purchase a home between January 1, 2009 and December 1, 2009, you may be eligible for a tax credit up to $8000. The amount is actually 10% of the purchase price of the home with a cap of $8000. Who exactly is eligible and what does "First Time Homebuyer" mean? If you have never owned a home before or have not owned your own home within the last three years, you qualify as a "First Time Buyer". Your adjusted gross income should be no more than $75,000 for single or $150,000 if you file jointly. The home being purchased needs to be your primary residence, but it can be a single family home, condo or townhouse. Unlike the previous tax incentive of $7500 enacted in 2008, this one does not need to be paid back. Unfortunately for those folks who purchased and received that original tax incentive, this new one is not retroactive, so you are stuck having to pay back that $7500. So you qualify for the new incentive...should you get off the fence and start looking for your new home? That's only a question you can answer, but keep in mind the following points: Interest rates are still at historic lows - If your credit is good, you will probably qualify for a great rate. And the rate can make a huge difference on your monthly payments and how much you pay over the life of the loan even more so than having the seller take a few thousand dollars off the purchase price. There is an Abundance of Inventory - This means you have lots to choose from and sellers are much more willing to negotiate to get you to purchase their home rather than the competition's. So yes, it's still very much a buyer's market! Prices Have Dropped - In some parts of the country home prices have declined significantly and are still declining. Don't let this scare you away! For a buyer, this means you can probably find a great deal. Just plan on being in your home for at least 5-7 years. If you are in it for the short term, it may not be the time for you to purchase, but it's great for anyone looking for a primary residence who plans to stay a while. Still not convinced? Do some homework... Talk to a lender or two to find out what you qualify for, what kind of rate you can get, etc. Most lenders will help you with this information with no obligation so I am surprised at the number of people who don't bother to make the call. This is key information in helping you decide whether or not you are ready to purchase! Pull your credit report. You are entitled to one free credit report each year. Make sure you get reports from all three reporting companies: Experian, Equifax and TransUnion. Be sure to get your FICO score as well. Check your report over carefully and start working to either resolve any problems or improving your credit score. Search the MLS. Either speak with an agent or do your own online search. For example you can search at www.Century21.com or if you live in the Charleston area try my website at www.SummervilleRealEstateOnline.com. Get a feel for what your money can buy you at various price points. If your credit is good, your job is stable and you plan on living in your new home several years, then this may be the time to make the move! There is no crystal ball to predict the future, but chances are that the bottom of the housing decline is here or near. If you wait too long, you may find yourself looking at prices and interests rates that are on the rise and rmember that the tax credit is only good until December 1, 2009! So do your research and get going! For additional information about the tax incentive talk to your lender or tax advisor. You can also visit: http://www.federalhousingtaxcredit.com/ Maria Pettis
Realtor, e-PRO
Century 21 Properties Plus, Inc.
Summerville, SC 29483
843-860-3901
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In the latest edition of my newsletter, "Summerville Scenes", I had written about how Dorchester County was set to pass a new ordinance pertaining to the burning of leaves and other yard debris. After a good bit of heated debate, the ordinance was to limit leaf burning to those homeowners who had a third of an acre of more. (For the full story visit http://www.summervillerealestateonline.com/Newsletter/page_2165076.html and click the Jan-March 2009 edition) Since that writing however, the debate has sparked anew with many residents claiming it would create too much of a burden for those who would no longer be allowed to burn since the county does not pick up and haul leaves and trash. Council is now considering revising the ordinance to limit burning within 75 feet of another house. Opponents contend that even at this distance, the smoke which supposedly releases toxic fumes can still be seen and smelled a good distance away. According to the Post and Courier in an article posted on November 10th 2008, even "The U.S. Environmental Protection Agency and the state Department of Health and Environmental Control have been encouraging residents to burn less". This is a topic that has been revisited many times by Dorchester County Council and if the ordinance does not pass or is tabled, it's sure to come up again. One solution of course, would be to have leaf hauling services made available to residents, however, that would most likely mean a tax increase. Yet with leaf burning posing both fire safety and health hazzards, isn't that something that council should be exploring? Perhaps leaves and yard debris could be picked up only two or three times a year with the schedule published well in advance giving residents time to rake and bag. ( That's how it was done in one county that I had lived in previously.) How much of a tax increase would we be talking about here? Perhaps if it's a modest increase, residents would be ok with that since it is a safety and health issue. Obviously, there are no easy answers here or this issue would have been settled long ago. But if it is one that constantly resurfaces, then it seems that County Council should work to find a compromise that most can live with (since there's no pleasing everyone!). For additional information or to find out when this issue will next be discussed at county council meetings visit the Dorchester County website at dorchestercounty.net/. Maria Pettis
Realtor, e-Pro
Century 21 Properties Plus, Inc
118 W. Richardson Ave.
Summerville, SC 29483
Maria@MariaPettisHomes.com Copyright 2009. All Rights Reserved. Do not copy or reproduce without express written permission of the author.
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While we only have about one month left of hurricane season to go, it wasn't a hurricane that recently made headlines here. This past Friday, a bad rain storm dumped approximately 9 inches of rain on the Greater Charleston area. This storm caused serious flooding in different areas stranding cars and damaging homes. This is called "the Lowcountry" for a reason and we do expect to have flooding on occasion in some areas. Buyers often ask me if certain homes are in a "flood zone". But here's the thing, according to local news reports, many of the homes that were flooded in this storm were not in high risk flood zones which begs the question, did these homeowners bother to get flood insurance? Sadly, many did not. Here's what you need to know about flood insurance... According to www.floodsmart.gov, the National Flood Insurance website, about 25% of all flood claims come from low to moderate risk areas. Our recent storm would seem to back that up. So no matter where you live, can you really afford to not carry flood insurance? The standard homeowner's policy does not include flood insurance so a separate policy is necessary. You can choose a policy that covers just the building, contents only, or both the building and it's contents. It's not as expensive as you might think with rates preset by FEMA, and if you need it (God forbid), it surely will be worth every penny. If you live in a low to moderate risk area, you have the option of purchasing flood insurance. Is it a good idea? I would recommend it and just ask those poor folks that I mentioned in the opening of this blog. If you don't purchase the insurance and get into a fix like these folks, you could apply for goverment assistance to get back on your feet, but it will most likely be in the form of a loan and do you really need that on top of your mortgage and other bills as you try to rebuild your life after such an event? If you are in a high risk or "Special Flood Hazard" area, then federal law requires you to purchase flood insurance and you will not be able to close on your home without it. Here in the Charleston area we have homes that fall into both categories so be sure to ask your real estate agent about the home you are interested in purchasing and then CONFIRM it with your insurance agent prior to entering into a contract. It's also important to note that there is a 30 day waiting period before flood coverage takes effect. You may also want to see what your insurance company can provide in the way of wind and hail. This coverage can be costly, but you can keep your premiums down by choosing a higher deductible. Putting some money aside to use for your deductible, should you need it, can provide you with greater peace of mind and be a much needed umbrella on that windy, rainy day. Shop around for the best rate and terms, but also be aware that there is a wind pool overseen by the South Carolina Underwriting Association for those that can't find coverage in the regular marketplace. Finally, I want to briefly mention that you should also investigate earthquake coverage as we actually have a fault-line running through the area. Yes! Here in South Carolina, believe it or not. The Summerville/Charleston, SC area is a truly beautiful place to call home. Nature has blessed us with beautiful beaches, waterways and a temperate climate. But Mother Nature has a way of reminding us periodically that she is also a force to be reckoned with, so it's best we are prepared. Knowing your insurance options and getting the appropriate coverage is the first step in protecting your home. Talk with an insurance agent for expert advice and to get more details about what coverage and options are best for you. For more info and additional resources, check out:
www.floodsmart.gov
www.fema.gov
www.dnr.sc.gov/water/flood/
www.scwind.com/index.html Kind Regards, Maria Pettis
Realtor, e-PRO
Olde Towne Realty, LLC
Maria@MariaPettisHomes
(843) 860-3901 All Rights Reserved. 2008
Contents of this blog may not be reproduced without express written permission of Maria Pettis.
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As an agent who frequently works with people looking to relocate to South Carolina, I'm often asked what the weather is like throughout the year. How cold does it get in winter? How hot is it during the summer? Do you get four seasons? Do I worry about hurricanes and flooding? Well, believe or not, there are no simple answers to some of these questions, at least not in my mind, even though most locals will kid with you that there are only two seasons here...summer and not summer! Right now it's fall and fall has been my very favorite season. Being from Long Island originally, I miss having a true fall that you can count on like clockwork. October rolls around and the weather is cool and crisp and the leaves change to vibrant colors. But here in the Charleston area, anything goes! I remember one fall when we first moved here that it was so warm we were wearing shorts all the way through til mid-December! I remember having Thanksgiving and preparing for Christmas thinking "this just isn't right!". While not unheard of, that was probably a bit unusual. There have been other years when we've had very Autumn-like conditions with cooler days and pretty foliage that has lasted several weeks. Most years, it's probably somewhere in between these two scenarios. I do love winter here though. While it can get downright cold overnight, most days are moderate enough to enjoy being outside. Great weather to take a walk or take the dog to the beach or a bike ride with the kids. Ok, I won't lie to you...summers are just plain hot! I'd never heard of the heat index until moving here. We get heat waves where temps are 100 degrees and the heat index makes it feel like 105! Those are days you just stay in the air conditioning or jump in the pool! But it does fluctuate and you can have days where it's quite warm, but tolerable. Even with the extreme heat of the summer, most of the year the weather is moderate and pleasant. It's one thing that makes living here in the lowcountry so special...oyster roasts outside in the winter, the Coast Carolina Fair in late October, Christmas festivities where you don't have to freeze your tuckus off, summer days at the beach cooling off in the water (which is never freezing in the summer by the way unlike the waters up North!) As for the hurricanes and possible flooding, I'll save that for another day as that is a topic in and of itself. But suffice it to say that hurricanes, tornadoes, floods, etc can hit any part of the country. Being prepared and having a plan is the key should anything happen no matter where you live. For now let me say good bye so I can head outside to plant some mums I just bought because today is a beautiful, crisp autumn morning with crystal clear blue skies! Year Round Average Temps for Charleston, SC | Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | | Average Highs | 60 | 62 | 68 | 76 | 83 | 88 | 89 | 89 | 85 | 76 | 68 | 61 | | Average Lows | 38 | 39 | 45 | 53 | 61 | 68 | 71 | 71 | 66 | 57 | 48 | 39 |
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One of the things that I love about living in Summerville is that there is so much to do here. Our climate is such that much of the year we can spend time outdoors. And with gas prices the way they are, it's nice to know there are so many options so close to home. With the kids back in school and the summer heat soon to wane (hopefully!), the Fall season gears up with all kinds of activities. I couldn't possibly list them all here, but a few of my favorites follow... On recent Saturday morning, my sister-in-law and I grabbed a cup of coffee-to-go and headed off to the Summerville Farmer's Market which continues every Saturday morning through November 22nd. As we strolled along Doty Avenue, we checked out a variety of booths including a local photographer, a vendor selling children's books as well as several others with different wares. And of course there were the local farmers with lots of fresh produce. The baked goods, jams and jellies were hard to resist too! After that we made our way to window shop along Main Street and Short Central. It made for a nice, relaxing morning away from the kids! Scarecrows made by local groups and school kids will be on display at Hutchinson Square throughout the month of October and the Harvest Moon Hayride and Ghost Walk is scheduled for October 25th. This great family event is sure to get everyone in the Halloween spirit! But one of my most favorite Fall events is the Coastal Carolina Fair which begins this year on October 30th at the Fairgrounds in Ladson. It's really a great event for everyone and for lots of reasons...first it has appeal, not just to young kids, but it's great for a date, just hanging out with friends, or for families of all ages and stages. There are baking contests, a flower show, equestrian events, farm animals, rides, games, and of course, the huge ferris wheel that every fair must have. There's too much for me to list. But it's proceeds also benefit a variety of charities which just makes it all the better. The other great thing about living in Summerville is it's location..it's.a short drive from Charleston where there is much to do as well. As most people probably are already aware, the history and architecture alone are good reason to visit. There's the South Carolina Aquarium, the Market, Ft. Sumter, the Children's Museum of the Lowcountry, the beautiful Battery and on and on. Summerville is also only about an hour and a half from Columbia and the Riverbank's Zoo. Fall is a terrific time to visit since it's not unbearable (no pun intended) to be outside visiting with your favorite animals! Another thing that is definitely worth mentioning is the "Be a Tourist in Your Own Town" promotion sponsored by the Charleston Area Convention and Visitors Bureau. Last year's cost was just $20.00 for a single pass or $50.00 for a family pass. These passes give you access to over 35 local attractions and discounts at area restaurants. The pass is good for the entire month of January. Sorry! This one is for locals only...any resident of Berkeley, Dorchester or Charleston Counties can purchase passes. Passes go on sale November 1st. Check out www.beatourist.net for a list of last years venues and restaurants to get an idea of what a great opportunity this is! It's like a mini vacation without leaving home. There are plenty of other things to do in Summerville on a more ongoing basis...you can join the YMCA and get a good workout, take a swim in winter, or sign the kids up for a team. There are an number of parks to enjoy and public tennis courts as well. Don't forget all the great shopping and fantastic restaurants...whether you want an inexpensive family meal or a quiet, romantic dinner for two there's a restaurant to suit you. Truly, I could go on and on, but instead let me provide a few more links that might be useful in finding out about the happenings in and around Summerville...
The Greater Summerville Dorchester County Chamber of Commerce: www.gsdcchamber.org
and www.visitsummerville.com/html/events Also visit: www.SummervilleDREAM.org www.SummervilleRealEstateOnline.com But let's not forget the simple things in life...one of my favorite spots is my front porch swing where I can sit and watch my kids draw with chalk on the driveway and ride their bikes back and forth. I also think Fall is really the best time to have a backyard cookout with your family and friends since you can actually enjoy being outside without sweating to death! So whether in you live in Summerville or just want to visit, I'm sure you'll be able to find something to entertain you! I hope to touch on a few of these in more detail in future blogs as well as some others I didn't even list this time. But meanwhile, what's your favorite thing to do here in the Lowcountry? I'd love to hear your thoughts and comments! Kind Regards,
Maria Pettis All rights reserved.
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It's summertime. School's out and a lot of families that have thought about relocating actually get up and make the move during the summer break. But is this the best time to move your kids? Moving can be stressful for the whole family, but it can be especially hard on the kids (particularly teens) who are faced with leaving behind their friends and all the familiarity of their previous home. They'll have to learn the layout and procedures of their new school and face the challenges of making new friends while worrying about whether or not their new set of peers will accept them. Many parents (myself included) deliberately move their families at the start of summer so that their children can acclimate to their new home and then start school fresh with all the other kids in the fall. However, it was once suggested to me that this is not necessarily ideal. Moving over the summer can mean that kids have many days to spend alone, with lots of time to dwell on missing their old friends. There can be weeks of summer vacation left before the start of school, turning what's usually a joyous childhood time to quite a lonely one. Parents should attempt to keep their kids occupied with activities, extra "family time" or by joining local clubs and teams to get the ball rolling on making friends. But how many of us actually do that? Getting unpacked and organized, starting new jobs, etc. means moving can be pretty exhausting for us adults. Thus the idea that moving during the school year may not be as bad as most people might think. Depending on your neighborhood, school can be the primary means for a child to have the opportunity to make new friends. Just getting out to the bus stop can allow kids to meet other children in their own neighborhood and provide a way for them to come together. The same can be said for the classroom and school activities. Plus, kids aren't spending days and weeks agonizing over whether kids at school are going to like them. They get that "first day at the new school" over with quickly. Now I don't know what's best here. I'm not a child psychologist. We always moved over the summer months and my stepchildren often went to visit their mom during that break so they were pretty much pre-occupied and in a familiar place while their dad and I got the new house straightened out. By the time they came home they had maybe a week or so before school started. Still, I know moving was hard on them and I don't know if moving during the school year would have made a difference. Or course, I was a teacher back then so job commitments prevented me from moving before the finish of the academic year anyway. But moving mid-year was something that I hadn't considered before and being that I now often work with relocating families, I thought it might make for an interesting discussion. While it seems that socially it might be a nice idea to move during the school year, academically I think it can be difficult. Catching up if the previous school moved at a slower pace can be rough on a kid. And having to sit through a repeat of material if your previous class moved quicker can be boring and cause a child to tune out. I'm sure what's best is definitely an individual family decision because no two kids are alike. And of course, that's if you even have the luxury of deciding when you move. That perfect job opportunity is not always in sync with the school year and many military families don't have the option of deciding when they can stay or go. So I'm putting it to you....what's your opinion? Is there a "best time" to move with children? I invite you to share your experiences of moving with your children. Share your suggestions for making it easier on them. Perhaps your experiences can help make it just a little bit easier for another family facing a big move. Kind Regards, Maria Pettis
REALTOR, e-PRO
843.860.3901
Maria@OTRHomes.com
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I passed an outdoor bulletin board a while ago in front of a real estate office (not mine  ) and it said "Media Hype Sells Papers. We Sell Houses." and I thought to myself "yes, that's true". I actually watched a guy on the Today Show around that same time telling people to absolutely not buy a home right now saying it's a bad investment. The realtor that they had on to dispute him pointed out that while it is an investment, for most people it's a home first...a place to settle down and live. Yes, the market has changed drastically from a couple of years ago, but the truth of the matter is that if you are looking for a home to live in for several years or more, now is a great time to buy. There are mortgages to be had, some even with 100% financing. Interest rates are still low and there is a ton of inventory to choose from which means you can often negotiate the sales price to your advantage. It's been predicted recently that interest rates will start to rise, so now may be the time to make the leap and purchase a home as the interest rate can seriously effect your monthly payment more than the purchase price itself. If you want to buy a home, but are not convinced that now is the time, ask yourself some basic questions...why do you want to buy? how long do you plan to be in this home? What is your job outlook like? If you're just looking to flip a house or stay in it for a relatively short period of time, then now may not be the best time to buy. But most people are looking for a place to call home, more than just a roof over their heads. Despite the current market, real estate is still a good investment over the long term. And studies show that most people stay in a home for a minimum of 7 years. Next, take a really good look at your financial situation; your credit, your income, your bills. A mortgage broker or your bank lender can help you compile this information and tell you if you would qualify for a loan and at what rate. It might also be worth your while to speak with two or three different mortgage people to compare terms. Be sure you understand the terms of the loan and you feel comfortable with them. Adjustable rate mortgages have gotten people in trouble because they start at a low and very affordable rate, but the rate adjusts in a couple of years and it can make your payments increase dramatically. People often think that their situation will improve in a few years and so they'd be able to handle the increase, but often this just isn't the case and you end up stuck with a mortgage you can no longer afford. You have to be realistic especially with the economy is a very uncertain state right now. If you're not getting quoted the rate you'd hoped for, talk with your mortgage lender about your credit. Sometimes improving your credit score can help you qualify for a better rate. Find out about what you can do to help improve your score whether it's paying off some bills or being sure to pay on time consistently. A lower interest rate can effect the amount of your monthly mortgage payment more than knocking off thousands of dollars from the sale price of the home. Get pre-approved, not just pre-qualified. There is a difference. A pre-qual is just a preliminary idea of what you can afford. A lender will tell you the amount they feel you can afford based on some basic information that you give them. Getting pre-approved means providing actual documentation as well as a credit check which gives a more definite picture of what you can afford. And don't go on any spending sprees or change jobs after getting pre-approved, because lenders often will check your status and figures again throughout the buying process. So you've decided you need a place to put down roots, your credit is in good order and you're pre-approved for a loan at a good rate. Why then wouldn't it be a good time to buy? Part of the reason why all the media hype has scared people off is because folks aren't going out there and getting the facts. If you do your homework and check into these things as discussed here, then you may find that for you, this is the perfect time to buy. Everyone's situation is different. But if you have a dream of homeownership and the only thing keeping you from pursuing it is all the negative news in the paper and on TV, it's time to start doing your research. Be armed with the information you need to make an informed decision about what's best for you and your family. I personally wouldn't want to waste money on rent if I knew I could get a decent fixed rate for a home of my own. Isn't it worth a shot? Still with gas prices soaring and job stability becoming more shaky, a lot of people are scared to take the plunge. I'm interested in hearing from you about why you are putting your home buying on hold. Is it the uncertain economy? Do you have to sell your current home and feel you can't get a decent price for it? Are you still waiting for prices to come down more? Is it a combination of factors or something else? I'd love to hear your input so I can better understand and serve my clientele in this crazy market and I might also possibly be able to address some concerns you might have. Thanks for your time and comments!
Maria
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Ok, it's been a long time coming, but here is the counterpart to Part One which gave some insights into the basics of buying real estate for first timers. It's my hope that Part Two can offer some information for those that might be selling for the first time. Why Pick An Agent:
In this sluggish new "buyer's" market, using a good agent can make all the difference in getting your home sold. When the market was booming, homes sold quickly, sometimes in a matter of weeks if not days. And many folks ventured to sell their homes on their own. But these days, you really should have a professional on your side who can guide you through the ins and outs of selling, someone who is on top of market changes and who will be aggressive in getting your home to stand out against the swarm of competition. Major Factors in Selling Your Home:
Homes can still sell today in a reasonable amount of time (often 2-3 months is normal). The three most important factors in getting your home sold are inclusion in the MLS, the right pricing and the condition of the home. A good agent will offer you advice on all of these things as well as marketing your home, showing your home and more. #1 The MLS:
Let's talk about the MLS first. This, along with good pricing, could be the most important thing in getting your home sold. Only your agent can put your home into the Multiple Listing Service which is the database of all active listings on the market for a given area. This is important because every other agent out there can then access this information. And let's face it, who do most buyer's eventually go to for help in finding their home? An agent! So you want those buyer's agents to find your home easily with the most up-to-date information on your listing possible. #2 Pricing:
Pricing is, of course, the other major factor in selling your home. A good agent will take considerable time looking at the comparables in your neighborhood that have recently sold. They should also be looking at what similar homes are actively being listed for since they are your main competition. Your agent should be willing to explain all this to you and show you the data. Your agent should always be willing to answer your questions and explain how they arrived at their suggested list price. Unfortunately, many home sellers are unpleasantly surprised by the findings, especially in this declining market. If you are not convinced of an agent's advice on price after looking at their comps, it doesn't hurt to get a second or third opinion. But if each agent is using good comps, the suggested pricing should be similar. Just be reasonable in your expectations and beware of those agents who just "yes" you on your desired price to secure the listing. Study the data being offered for yourself. Make sure that the comps being used are homes of similar age, size, # of bedrooms/baths and have similar features as your own home. Of course, most comps will not be exactly the same, but they should be as close as possible and within your neighborhood if possible. Many people also make the mistake of seeing what neighbors have asked for their homes and assume that the homes have actually sold for that amount. And be careful too about listening to the neighborhood gossip of who sold which home for what price. While well intentioned, neighbors can sometimes be misinformed. Your agent will have the correct information from the MLS. It's also important to realize that every seller's situation is different and can effect the selling price. Some may need to get out quickly and so start with a low price. Others might sell for what seems like a great price, but there are buyer closing costs built in to the amount or perhaps the need for major repairs reduced their net amount. Without a competitive price, you won't get buyers in to look at your home. There is so much inventory out there, that if they can find a similar home at a lower price, they won't even bother looking at yours. Your agent should also be getting feedback from buyer's agents after you've had a showing and relaying that information to you. That information can be vital to tweaking your home and getting it to stand out from the competition. Most importantly, if you price your home too high and get an offer that matches or comes close, your home must still appraise for that amount. And what do appraisers use in making their determination on the value of your home? You guessed it...those comps! So you really do need to pay attention to those and a good agent knows it. #3 Home Condition:
Which brings us to number three on my list...the condition of your home. If you expect to ask top dollar and your home is in move in condition, you'll have little to worry about. If not, be prepared to either make repairs and upgrades or price your house accordingly. But again, here's another area where you need to beware...the amount of money you spend on repairs and upgrades is NOT always equal to the amount of money you can expect to get back at the time of sale. Many people sink tons of money into top of the line items thinking they will recoup 100% or more of the money they've invested. This is just not the case. So choose wisely and don't go overboard. A good agent should be willing and able to tell you were to put your money and what kind of return you can expect. The Seller's Net Sheet
One of the best services an agent can offer is one that I think is not used as often as it should be...the seller's net sheet. While some folks might be a little leary of sharing personal financial information, this is a great tool that will help you decide if now is the time for you to sell. Your agent will need to know what your property taxes are and what the balance is on your mortgage and if you have any second mortgages or home equity lines that will also need to be paid off. The seller's net should break down and show you how much you can expect to pay in closing costs which would include the agent's commission, legal fees, etc. Some will even factor in items such as possible repairs, purchasing a home warranty for your buyers, transferring termite bonds and other items. After these are figured in, you will see an approximation of how much money is left that you will actually take home with you from the closing table. Keep in mind that it is only an estimate, but one that could effect your decision on whether or not to sell. A Few Words About Those Commissions
Here's another thing that many seller's don't realize which can also effect your bottom line...an agent's commission is always negotiable! If the agent who is listing your home is also helping you purchase another, they may be willing to give you a discount since they will be working with you through two transactions. Even if they are only your listing agent, don't be afraid to discuss this subject. Ask what kind of service you can expect for the money you are paying them. Keep in mind that your agent will be encurring expenses up front to market your home and get it sold. There might be costs for advertising in local papers and home magazines, open houses, "just listed" postcards, flyers, etc. In addition, the commission is typically split between the buyer's agent and your listing agent. A percentage often then goes to the agent's company, some is kept out for taxes and to pay those marketing costs. So while it may seem like your agent is getting a huge commission, after the breakdown of all those things, they don't net as much as you would expect. Having said that, however, make sure that your agent is willing to earn every penny of their commission in the process! Try to determine if they will be available to you after you've listed your home. How easily can you get hold of them to ask questions, get feedback, etc. Do they seem irritated by your questions or do they take the time to listen and answer to your satisfaction? Can they and will they help you find closing attorneys, termite inspectors, contractors and other professionals you might need along the way. Will they help you negotiate once an offer is made, be there to help oversee inspections and sit with you at the closing table? The process is far from over once an offer is accepted. With many "fee for service" agents out there now, be sure you know exactly what you are getting. Summary
In summary, you CAN still get your home sold in this market. Don't rush in choosing an agent. Interview several and find the one that suits you and will work hard for you, not just stick a sign in the ground and leave. Be realistic about pricing your home. With all the other homes out there now, if you can price your home competitively you have a good chance of getting buyers in to look and ultimately make an offer. And be willing to make repairs and basic upgrades. Your home has to stand out from the rest, so be sure it is neat, clean and up to date. Just like with any other professional, an agent should be concerned about providing quality service. This means keeping the lines of communication open between themselves and the seller. It means being attentive and hardworking and answering lots of questions. Having a good agent on your side can make all the difference in the world in getting through the selling process successfully. As always, if I can answer any questions that were not addressed in this blog, do not hesitate to contact me either via email at maria@otrhomes.com or by phone at (843) 860-3901. No strings attached. Kind Regards,
Maria Pettis, Realtor
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It seems like lately I've come across a lot of "first time buyers" and even some "first time sellers" who really didn't seem to know what to expect from working with an agent and just some of the basics of real estate. So it seemed like a good idea to address some of the questions that these folks have come to me with lately. Why Pick An Agent:
Most buyers whether first timers or not, start their search online looking at listings and photos. Eventually, you'll head outdoors away from the computer and start driving around areas you like, stopping in at open houses or calling the numbers you see on "For Sale" signs. Before you know it, you've talked to half a dozen different agents. What some first time buyers don't realize is that you can simplify your home shopping by picking one agent to work with. Your agent will help do the legwork for you, targeting listings that meet your specific criteria and price range. So instead of having to call a whole lot of different phone numbers, you call your agent who can get information on the homes you think you might be interested in. Any agent licensed in the area you are looking in has access to the MLS or Multiple Listing Service which includes every home for sale except "For Sale By Owner" properties. The MLS that your agent accesses will be more up to date and include important information such as how long the home has been listed for, any price reductions, etc that just searching online yourself will not turn up. Many times clients will email me a listing they found themselves online only to have me look it up and find that it has already been put under contract. Your agent will be there to guide you through the entire home buying process. It includes much more than just helping you search for the perfect home. Your agent will help you negotiate a price and can assist you by giving you names of mortgage consultants, local building inspectors, attorneys and other needed professionals. It's not only their job to find you a home, but to help you all the way through to the closing table. How to Pick an Agent:
Of course if you know someone who had a positive experience and they refer you to the agent that they used, that's great. But even if you have a referral from a friend or family member it still may be worth your while to talk to a few agents and see who you "gel" with. After all, you have to feel comfortable with this person because you'll be spending a lot of time with them! And don't necessarily discount newer agents. They are usually eager to please and have plenty of time to devote to YOU. Just make sure they have a good support system (a mentor, lots of contact with their broker, supportive office staff, etc) and seem organized and knowledgable. Whoever you pick should respond to phone calls and emails quickly. If they can't answer a question for you, they should get back to you with an answer pronto! And they shouldn't be afraid to say "I'm not sure. Let me find out for you." as long as that isn't their standard answer for every question! They should be asking YOU lots of questions especially in the beginning. They need to learn from you as much as possible about what you want in a house. Aside from the standard, "what's your price range? how many bedrooms/bathrooms do you need?", they should be asking you a laundry list of questions about what you like and want to help you target your search. And when you go out looking with your agent, they should be tuned in to your reactions and asking you what you like and don't like about each property. They need to know these things to help refine the search so you aren't wasting your time! Agency Relationships:
Here in South Carolina, any agent needs to disclose "agency relationships" to you fairly early on. "Agency" describes the kind of relationship you will have with your agent. Generally speaking, if you sign an agreement with your agent (as most will want you to do), they work for you and are supposed to put your interests above all others including their own. Information between you and them is privileged and cannot be disclosed to other parties. They can then help you negotiate the best deal and assist you at every level. You are their "client". If you choose not to sign, you are considered a "customer". They must be honest with you about properties they show you, but technically they are working for the seller so be aware of what you say if you decide to "represent" yourself. Keep in mind too, that by signing an agency agreement you are also agreeing to work solely with this particular agent. Just as you expect your agent to be loyal to you, the client; you are expected to reciprocate and not go agent hopping. This is why you should talk with a few agents first before signing on with the one you are most comfortable with. This doesn't mean you can't stop in to an open house if you want, but be sure to let the agent on duty know you are already represented. They will most likely ask you anyway. This is a very abbreviated explanation about agency here. I promise to blog in more detail about it at a later date. Just know that whatever agent you work with should give you a pamphlet that you can read (it's state mandated here in SC that we provide you with this!) with detailed information about it. They should also give you a full explanation and allow you to ask questions and provide meaningful answers. Basically, agency was created to protect consumers, but as with any signed agreement you enter into, you want to understand what it all means for you! In most cases, signing on with an agent does not mean that you are responsible for paying that agent for their work. Typically, the agent's fees come from the seller's proceeds of the home. However, if you decide to go look at For Sale By Owner properties with your agent, you will need to discuss how the agent plans on getting compensated. Sometimes the seller will still pay the agent for bringing a buyer, but sometimes the agent will expect the buyer to provide compensation in this case. Be sure to discuss this ahead of time with your agent if FSBO's appeal to you. You're Fired!
Finally, just know that if you are not happy with your agent you are not necessarily stuck with them! If you signed an agency agreement you can usually request (in writing) to be released. Send a copy of your request to the agent and the agent's broker. Some agreements might specifically spell out the terms for being released from the agreement so read carefully before signing and if there is not any language regarding this, ask your agent what their personal policy is. But basically, if you can hire them, you should be allowed to fire them! Most agents are good, ethical people that just want to help you out. Working with one can help simplify what is sometimes a complicated process. There are often little glitches that come up along the way and your agent is your "go-to" person! Buying a home is often the biggest financial and emotional investment that you'll ever make. So who wouldn't want a little help with that? Additional Information
You can find additional information on home buying on this blog or at my website www.summervillerealestateonline.com As always, I am also available to answer questions with no obligation. Feel free to email me at Maria@OTRHomes.com or call me at 843.860.3901 if I can be of assistance.
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Most people, including many first time buyers, are quite familiar with the things you should do before purchasing a home... you save some money for a down payment, closing costs and the like; you check your credit scores and clean up any credit issues if possible to improve those scores; you get pre-qualified; you start searching the net for that perfect house and you contact a realtor. But what about the things you shouldn't do before purchasing a home? These things can affect your ability to get a home just as much, and in some cases more, than the items I listed above. Don't Switch Jobs! Switching jobs may not be a big deal if you work an hourly or salaried position and can offer proof of your new employment along with what your new salary is going to be. It's even better if you can provide a few pay stubs from your new employer. However, if you're going to be working on commission or will be relying heavily on bonuses, then it's best to buy first and then switch jobs. The same goes for if you are going to become self-employed. In this case, lenders want to see your records from the past two years to verify your income. Don't Make Any Big Purchases! A colleague of mine recently told me how a sale fell through because her buyer clients went out and purchased a new automobile. They had found a home, gotten pre-approved and had a closing date. Thinking they were all set with the house, they went and purchased the car. A day before the closing, they got word that the purchase of their new car changed their status and the lender would no longer give them the loan! You can imagine how disappointed those folks must have been! Lenders often will continue to check your credit and review your loan throughout the purchase process, up to and including the day of closing. So resist the urge to go purchase that new furniture for your new home until after the closing! Similarly, don't take any expensive vacations, take out personal loans, or run up your credit cards, etc. And be sure you continue to pay all your bills on time. Don't Move Your Money Around! When getting approved for your loan, the underwriter will be looking at your accounts. They want to see where the source of your down payment and closing costs will come from in addition to verifying your income. They are going to require some kind of paper trail showing where your money is and where it's been. Typically, they will want to see two to three months of statements for your checking and savings accounts as well as for any other assets you might have such as money market accounts, stocks, mutual funds, etc. If you've moved large amounts from account to account or even consolidated funds into one account, it becomes harder to document and the underwriter may question it. Switching banks may also cause a similar situation so avoid it until after your home purchase. Don't Waste Time and Energy looking at homes with an agent or going to open houses until you talk to a loan officer about what you can really afford. Do your homework. Get pre-qualified or better yet, pre-approved. Find out what your monthly payments will be at different price points because for most people the monthly payments are really the bottom line as to affordability. Be sure to ask if that amount includes taxes and insurance even if it's just an estimate. Be honest with the loan officer about any potential credit issues that may affect your ability to get a loan. Nowadays, with an increase in foreclosures, many lenders are tightening their criteria for approval. Credit problems can also affect the interest rate you qualify for and that is a big factor in terms of your monthly payment amount. Please keep in mind that I am not a loan office or in the mortgage business. I'm a Realtor. These are basic suggestions and I would advise you to consult your loan officer for more information on these items. Being informed and prepared will help make the home buying process a smooth one. And who doesn't want that when making one of the biggest financial and emotional investments of your life!
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To understand my philosophy regarding real estate, you have to know a little about my background. My husband and I did a lot of moving around both before and after we met. Although we had both owned our own homes once before, we spent most of our adult years in rentals. In every rental home, we dreamed about what we would do to fix it up if it was ours and lived vicariously through HGTV shows! But renting is not a fun way to live especially when you have kids and pets. When he retired from the military after 20 years, the search was on for a place to put down roots. After trying out a couple of places, we finally settled on Summerville, SC where we bought our own home and we love it here! Why is this important to you as a home buyer or seller? Because I don't take for granted the importance of owning your own home! I understand better than most that it's not just about finding the right house, it's about finding the right home and I know the difference! Your home is your safe haven, the place where you set the tone for your lifestyle, raise your family, entertain and much more. Plus it's the biggest investment you'll probably ever make! So I make the biggest effort possible to listen to what you want and need in a house and match you to the right property. When you're selling a home, you are more than likely to be excited about starting a new chapter in your life, but perhaps also sad to be leaving a place that holds lots of memories. It can be an emotional experience for some. And you probably have certain goals in mind in terms of how much money you net from the sale of your home and how quickly you can get it sold. That money and time represents the ability to achieve your future goals and dreams. I understand that too. I can help you take a step back and look at your home objectively so you can see it from the buyer's perspective. This will help us know how to stage and price your home properly. And as always, my comparative market analysis of your property is FREE with no strings attached. So to summarize, my philosophy is this: Continuously LISTEN to what clients have to say about their needs and goals and ALWAYS keep that in mind as I search for property or list their home. Your goals become mine in order to help you achieve your dreams in terms of real estate and I'll work harder than anyone to make it happen for you. That's why my slogan is "Understanding your needs, fulfilling your dreams!" and I mean it because I've been there. It's important to me that my clients be more than satisfied. I want you to be happy with your real estate experience. I hope you'll consider contacting me to discuss your real estate needs. I invite you to call at (843) 860-3901 or email me at maria@OTRHomes.com Meanwhile, feel free to browse my website for more information and listings. www.summervillerealestateonline.com And thank you for your interest!
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Welcome to Summerville, SC! It's not only where I work as a realtor, but where I live with my family. My family and I chose to live here out of all the other places in these wonderful United States. And believe me, we looked at many places in many different areas. It was an extremely important decision to make since we have children. And as any parent will tell you, we all want to raise our kids in a safe, affordable, friendly community. Having researched this area thoroughly before moving here, and having lived here now for a few years, I probably know Summerville just as good as most natives. And I certainly know what's important for home buyers and those who are relocating here! We picked Summerville for a number of reasons. My husband is originally from Columbia, SC and most of his family is still there. I'm originally from Long Island and being near beaches and the coast was very important to me. And it's near two military bases which was important to us because my husband is retired Navy. But there were many other reasons that I'm sure just about everyone can appreciate: Summerville has wonderful small town charm and appeal, but is near the historic and cultural city of Charleston; the cost of living is relatively low compared to other parts of the country; same with property taxes; there are still good job opportunities here; we're near beautiful beaches; there are lots of opportunities for owning your own home; Summerville has a very family friendly atmosphere; you get more bang for your buck in terms of housing here than in some other areas in Charleston; and while the local schools are rated highly in the state, there are also many good private schools to choose from. I could go on, but you get the idea. If you check out my website, www.summervillerealestateonline.com, you'll find even more information and resources relating to Summerville and the surrounding areas. Having moved more times than I can even remember, we were looking for a place to finally put down roots and call home. I'm happy to say, we've found it here in Summerville. As I mentioned earlier, it was not a decision we took lightly, and neither should you. If you already live here, then you know all the wonderful things that the Lowcountry has to offer. If you're considering a move here, I hope you'll contact me because I would be happy to share information about the area with you and answer questions you may have. Not only because I'm a realtor, but because talking with someone who actually lives in the area is helpful. It's impossible to get an idea about a place simply from the internet. Believe me, I know! But the internet is a great place to start. Once a place intrigues you enough and you've gotten some basic questions about the area answered, try an MLS search to get an idea of what homes are out there in your price range. (You should absolutely get a no obligation, pre-qualification first to know how much you can afford!) Contact me either through my site or even directly and I'll send you a free relocation kit with area maps, brochures and lots of other information. (No matter where you are moving, you can get similar packets from a realtor in the area in which you are looking or through the local chamber of commerce.) Still interested? Now's the time to take a visit. Try to look at the area not as a tourist, but as a resident. Where would you shop for groceries and other goods? Are there medical facilities nearby? Where are the schools located? How far might you have to commute to a potential job? What kind of parks and activities are available for you and your family? Visit the local library, Visitor's Center or Chamber of Commerce for more information. Pick up the local paper and watch the local news. Take note of the traffic reports, weather and major local news stories. And by all means, contact a real estate professional such as myself for information on available properties, possibly even preview some homes if you are serious enough about the area. The Charleston/Summerville area is great not just for families, but also for singles, retirees and really anyone who wants to enjoy the Lowcountry lifestyle! There is so much here that there really is something for everyone. Again, if you visit my site, you can learn more about what's available here. I hope you've found this helpful in some way. If I can be of further assistance, please don't hesitate to contact me either through my site, email or directly by phone. I'm here for you!
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