Home pricing predictions showing an expected increase as soon as next year!

Double Dip or Double Your Money? … or Both?

by The KCM Crew on March 28, 2011 · 3 comments

in For Buyers,For Sellers,Pricing

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Last week, MacroMarkets LLC announced the results of the March 2011 Home Price Expectations Survey, compiled from 111 responses of a diverse group of economists, real estate experts and investment and market strategists. Many media sources reported on the survey’s comment about a projected ‘double dip’ in prices. What the media didn’t aggressively cover was the other projection in this same report. Today we want to shed light on both portions.

Double Dip

There is no doubt the survey looked negatively on house prices through the rest of 2011. Robert Shiller, MacroMarkets co-founder and chief economist said:

“Overall, the sentiment among our expert panel regarding the U.S. housing market outlook continues to deteriorate. Now they are expecting only a weak recovery, and even that is not until 2013. This uninspiring view must be influenced by the persistently weak market fundamentals – high unemployment, supply overhang, an unabated foreclosure crisis, and constrained mortgage credit.”

Terry Loebs, MacroMarkets managing director commented on the dreaded ‘double dip’.

“Many more experts are now projecting a double-dip after witnessing the double-dead cat bounce that came in the wake of expired government stimulus programs. In December, only 15% of our panelists were projecting that a new post-crash low would materialize for national home prices. Now, just three months later, almost 50% foresee a double-dip happening this year, and not a single panelist expects national home prices to recover to the pre-bubble trend in the coming 5 years.”

However, the longer term view of home prices was much more optimistic.

Double Your Money

The experts projected that by the end of 2015 home prices would attain a cumulative level of appreciation of almost 10% (see chart below from the report).

This means, if you purchased a house today with a 10% cash down payment, you could double your cash in five years; even taking the projected double dip into consideration.
Shiller also noted that there continues to be significant dispersion among the panelists regarding their individual home price forecasts:

“A few respondents do see a real recovery, predicting prices up 20% or so by 2015.”

If that happens, you would have TRIPLED your cash.

Bottom Line

If you are thinking of selling in the next 12 months, you should do it before the projected ‘double dip’. If you are thinking of buying and you plan to live in the home for at least five years, your financial investment will be fine.

Are we carving out the bottom of the real estate market in Upstate, SC?

Real Estate: GOLDen Opportunity of This Decade

by Steve Harney on March 30, 2011 · 3 comments

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Everyone wants to comment on the current real estate market. They want to talk about how now is not the time to buy a home. Some even argue owning a house has never been a great investment. Most say it will be a long time before real estate again begins to appreciate. It all sounds so familiar to me. It was just a decade ago that many made the same arguments about gold as an investment.
Gold had dropped from over $400 an ounce to $250 an ounce (a 40% decline) from February 1996 to August 1999. People ran from gold as though it was a plague.
Lord William Rees-Mogg, the current Chairman of The Zurich Club, in 1997 said:

“No investment has been so thoroughly exploded as gold; most people think that there will no more be another gold boom than there will be another boom in tulip futures in The Netherlands.”

Two years later in 1999, Don Wolanchuk author of the Wolanchuk Report explained:

“Everybody hates gold. You can’t have a bottom until everybody is out. And everybody is out of the gold sector.”

Everyone knows what happened next. The proclamation of gold’s death was rather premature. Gold rose from $250 an ounce to over $1,400 an ounce in the next twelve years. I see the same situation with real estate today. I am not predicting that real estate will see the same levels of appreciation. I do believe however that the market will rebound strongly.
Those who continued to believe in gold as an investment were rewarded. Those who continue to believe in real estate as a sound investment will also be rewarded.
Here is what Adam Hamilton wrote in October 2000 in an essay titled Is Gold Dead?

The road for gold investors has been long and parched in the last five years.  They have wandered through a seemingly endless desert, occasionally tempted by what proves to be an illusory mirage.  Many have fallen beside the sun-cracked path, their white bones picked clean by buzzards and gleaming in the sun.  Nevertheless, a brave contrarian core continues to march forward.  They have studied history, currency, gold, investments, economics, and finance.  They understand the timeless value of gold, the cyclical nature of the markets, and the vagaries of human psychology.  They realize it is darkest before the dawn, and the journey most difficult right before the homestretch is reached.  Gold is in an INCREDIBLE position, and it will have its day.  Nothing goes up in price forever, and nothing goes down in price forever.  Investments are cyclical.  Gold is NOT dead, it is simply biding its time, waiting for its next earth-shattering mega-rally.  The spoils that go to the few remaining gold investors when that day inevitably arrives will be fantastic.  The stunning victory will quickly blot out the painful memories of the long struggle…

You could replace the word ‘gold’ with the words ‘real estate’ throughout this essay and it would apply today.

THANK YOU, all Vets....but especially today, Thank You to Vietnam Veterans.

On this day in 1975, South Vietnam surrendered to the North, reuniting Vietnam. If you know a Veteran of the Vietnam War, honor them today by thanking them for their service.

Learn About the Vietnam War

Between 1945 and 1954, the Vietnamese waged an anti-colonial war against France and received $2.6 billion in financial support from the United States. The French defeat at the Dien Bien Phu was followed by a peace conference in Geneva, in which Laos, Cambodia, and Vietnam received their independence and Vietnam was temporarily divided between an anti-Communist South and a Communist North. In 1956, South Vietnam, with American backing, refused to hold the unification elections. By 1958, Communist-led guerrillas known as the Viet Cong had begun to battle the South Vietnamese government.
To support the South’s government, the United States sent in 2,000 military advisors, a number that grew to 16,300 in 1963. The military condition deteriorated, and by 1963 South Vietnam had lost the fertile Mekong Delta to the Vietcong.  In 1965, Johnson escalated the war, commencing air strikes on North Vietnam and committing ground forces, which numbered 536,000 in 1968. The 1968 Tet Offensive by the North Vietnamese turned many Americans against the war. The next president, Richard Nixon, advocated Vietnamization, withdrawing American troops and giving South Vietnam greater responsibility for fighting the war. His attempt to slow the flow of North Vietnamese soldiers and supplies into South Vietnam by sending American forces to destroy Communist supply bases in Cambodia in 1970 in violation of Cambodian neutrality provoked antiwar protests on the nation’s college campuses.
From 1968 to 1973 efforts were made to end the conflict through diplomacy. In January 1973, an agreement reached and U.S. forces were withdrawn from Vietnam and U.S. prisoners of war were released.  In April 1975, South Vietnam surrendered to the North and Vietnam was reunited.
CONSEQUENCES:
1.  The Vietnam War cost the United States 58,000 lives and 350,000 casualties. It also resulted in between one and two million Vietnamese deaths.
2.  Congress enacted the War Powers Act in 1973, requiring the president to receive explicit Congressional approval before committing American forces overseas.

It was the longest war in American history and the most unpopular American war of the twentieth century. It resulted in nearly 60,000 American deaths and an estimated 2 million Vietnamese deaths. Even today, many Americans still ask whether the American effort in Vietnam was a sin, a blunder, a necessary war, or a noble cause, or an idealistic, if failed, effort to protect the South Vietnamese from totalitarian government.
A succinct history of the Vietnam War
http://www.digitalhistory.uh.edu/database/subtitles.cfm?titleID=71

Declaration of Independence, Democratic Republic of Vietnam. September 2, 1945
http://www.vwip.org/articles/declar01.htm

Documents relating to the Vietnam War
http://www.mtholyoke.edu/acad/intrel/vietnam.htm

$445,000 in 2008 to $160,000 in 2011!!!

This beautiful, never lived in home in the Griffin Park subdivision of Simpsonville was originally listed at $445,000 when it first came onto the market on 09/25/2008. As of just 10 days ago, the price had been reduced from there to $160,000!!!

Two other foreclosures in Griffin Park: Neither of these homes have been lived in.
235 Austin Brook: Appraised for $323,000 in 2009! Now asking $199,900!

This home on Hatcher Creek is asking $199,000 and has several "green" features, including bamboo floors!

Contact me if you'd like more information, or would like to see any of these foreclosures!

Foreclosure 03/28

This home hit the market as a foreclosure this morning. It's a 3 bedroom, 2.5 bathroom home with 2000-2199 square feet, and sits on a quarter of an acre! Asking $189,900 this home is brand new and has never been lived in! It is in the wonderful Copper Creek subdivision in Simpsonville.

Contact me if you would like to see it!
843-437-6917

Distressed Properties: A state by state glance

Distressed Sales: State by State

by The KCM Crew on March 23, 2011 · 1 comment

in Foreclosures,Pricing,Short Sales

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We have often written on the impact foreclosures and short sales have on the value of the house next door. The Center for Responsible Lending has done great reporting on the subject. It seems distressed properties will be a challenge we will need to deal with for some time. The National Association of Realtors (NAR) released their Existing Sales Report. The report said:

Distressed homes – sold at discount – accounted for a 39 percent market share in February, up from 37 percent in January and 35 percent in February 2010.

This week, NAR released an Economic Outlook. In the report, they covered the percentage of overall sales that distressed properties represented in each state. Here is a map that accompanied the report:

Bottom Line

Distressed properties have a major impact on house values in a marketplace. Where there is a large percentage of distressed properties, home prices will continue to soften until we work our way through this inventory.

Compound Interest: The Rule of 72

The Rule of 72 basics:
To determine how long it will take your money to double, divide 72 by your interest rate percentage earned. For example, say you have a CD paying 8% (hey, it could happen!). 72 divided by 8 is 9....it will take 9 years for your money to double.
Check out this interest rate calculator to see how much money you will have at a given interest rate, how long it will take that money to double, and even how long it will take you to reach a given financial goal! Very useful!

http://www.moneychimp.com/features/rule72.htm

Building Wealth: 101

The 4 Stages Of Wealth Building As A Homeowner

by Dean Hartman on March 24, 2011 · 5 comments

in For Buyers,For Sellers

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One of the primary objectives of owning a home is to let the home appreciate over time and become a pillar of a family’s financial strength.
But before we can discuss “wealth”, we need to identify the stages to get there.

Stage 1

Having “Emergency Cash” is the first stage. It’s having $5-7,000 liquid for life’s inconveniences (the boiler breaking down, the car needing work, etc). When faced with the inevitable challenges that arise, many people are forced to run to their credit cards to make it through. They become stuck with high interest rate, non-tax deductible borrowing.

Stage 2

The second stage is the elimination of “Bad Debt”. We define “Bad Debt” as any debt whose interest is not tax deductible. Obviously, those high interest rate credit cards must be the first to go. But we also want to divest ourselves of the borrowing associated with car loans, boat loans, student loans, and personal loans because it typically can be done cheaper.

Stage 3

Shockingly, when you arrive at stage three, you will be considered in the Top 5% of Americans in terms of financial security. Stage three is accomplished when you have 3-6 months of your total expenses in reserves. The average homeowner (who is logically financially better off than the non-homeowner) has less than one month’s expenses in reserve! When life shows them more than a minor inconvenience (like a job loss, an illness/disability, or worse), most people are in a panic situation. With 3-6 month’s reserves, you will have time to weigh options and make better choices.

Stage 4

True financial security is attained when you become “Debt Free”. But not without debt. We consider our clients “Debt Free” when they have enough liquid assets to pay off whatever mortgage they have outstanding. Wealth building almost requires utilizing the tax benefits of having a mortgage in combination with strategies that utilize The 3 Miracles of Money…

The 3 Miracles of Money

1. Compound Interest – The impact of money left to grow upon itself can be dramatic. If you had $1 on Monday and you could double it every day ($2 on Tuesday, $4 on Wednesday, etc.), by the end of 20 days, you would have $1,048,576.00!!! Now, you can’t double your cash every day, not even every year, but the concept holds true…..compounding interest is a good thing!
2. Tax Free Growth – The ability to accumulate assets without giving Uncle Sam a third of it (in the form of Federal and State Income Taxes) is how the $1 became $1 million. If the growth was taxed at 33% ($1 on Monday gave you $1.67 on Tuesday – instead of $2- and so on), your $1 would only grow to $28,466.20 after 20 days!!! THAT IS NOT A TYPO! You would have “lost” over $1 million.
3. Leverage and Arbitrage – If you can put up minimum cash and take title to a significant asset (like a down payment on a home….the smaller the down payment the better), you can leverage that cash investment to large returns. At the same time, if you can take the cash that you don’t bury in home equity and effectuate a spread between your “after tax cost of money” (mortgage payment) and your investment options (hopefully, in a tax free environment), you can gain the exponential growth that creates wealth.

Bottom Line

Please take the time to investigate all that is possible, by harnessing the POWER of a mortgage to help you move your family towards wealth. Work with a loan officer who can educate you on the power behind properly leveraged real estate via tax savings and reallocation of equity.

Distressed Properties: Short Sales and Foreclosures; the "time" factor

Distressed Properties: Discounts and Difficulties

by The KCM Crew on March 25, 2011 · 2 comments

in For Buyers,Foreclosures,Short Sales

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Most buyers want to make sure they get a ‘good deal’ when they purchase something. Purchasers of real estate are no different. That is why many decide to buy a distressed property (a foreclosure or a short sale). The National Association of Realtors (NAR) last week reported foreclosures, on average, sell at a 22% discount and short sales at a 17% discount. It sounds like a pretty good decision to buy a property at those levels of discount.
However, the purchaser must realize that there are added obstacles in these type of transactions. Many foreclosures are left in less than pristine condition by the previous owner and some have title issues that must be corrected before they can change hands. Many short sales have multiple loans that must be negotiated before an offer is accepted by all parties to the transaction. This can take months in many cases. Purchasing a non-distressed property will probably have a lot fewer pitfalls.

“Patience Equity”

Does that mean that you shouldn’t consider a distressed property? Not necessarily. Just understand that there is an additional cost to purchasing a foreclosure or a short sale: the cost of time. For some, the 17 or 22 percent discount is well worth the extra time they must spend on the transaction. We like to call that savings your ‘patience equity’. Patience equity will require you to be patient however. Realize going into the deal that there will be obstacles to overcome and make sure you give your real estate professional time to overcome these challenges. Again, patience equity will require your patience.

Bottom Line

Buying a distressed property could make sense for you as long as you realize you will need to be VERY patient with your real estate agent throughout the process. If you are, you will own a home that has considerable equity the day you move in.

Home Inspection before you sell: Is it a good idea?

    There is a trend subtly making its way to the forefront for those trying to sell their home: the idea of paying for a home inspection as a seller is becoming a debated topic. For a majority of real estate transactions, the home inspection is ordered (and paid for) by the potential buyer after a purchase and sales agreement has been accepted and signed by both buyer and seller.
    After the home inspection, the buyer has 3 options:
1. Request that the seller make some, all, or none of the repairs recommended by the home inspector.
2. Further negotiate a lesser purchase price to cover the cost of repairs, should the seller refuse to make the repairs.
3. Walk away from the deal only owing the home inspector his fee.

   As a seller, it might be worth your time and resources to get the home inspection out of the way, minimizing the leverage that the buyer could gain in the home inspection. You will identify up front any areas of concern and can then repair them before the buyer has to ask.

From the National Association of Realtors: What to do to get your house ready to sell.

Get the House Ready
A house that "sparkles" on the surface will sell faster than its shabby neighbor, even though both are structurally well-maintained.
From experience, REALTORS® also know that a "well-polished" house appeals to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is maintained, what they can't see has probably also been maintained. In readying your house for sale, consider:

• how much should you spend
• exterior and curb appeal
• preparing the interior

How much should you spend
In preparing your home for the market, spend as little money as possible. Buyers will be impressed by a brand new roof, but they aren't likely to give you enough extra money to pay for it. There is a big difference between making minor and inexpensive "polishes" and "touch-ups" to your house, such as putting new knobs on cabinets and a fresh coat of neutral paint in the living room, and doing extensive and costly renovations, like installing a new kitchen. Your REALTOR®, who is familiar with buyers' expectations in your neighborhood, can advise you specifically on what improvements need to be made. Don't hesitate to ask for advice.

For Your Home Our home improvement section features how-to tips and important information about repairing and remodeling your home.

Maximizing exterior and curb appeal
Before putting your house on the market, take as much time as necessary (and as little money as possible) to maximize its exterior and interior appeal. Tips to enhance your home’s exterior and curb appeal:

• Keep the lawn edged, cut and watered regularly.
• Trim hedges, weed lawns and flowerbeds, and prune trees regularly.
• Check the foundation, steps, walkways, walls and patios for cracks and crumbling.
• Inspect doors and windows for peeling paint.
• Clean and align gutters.
• Inspect and clean the chimney.
• Repair and replace loose or damaged roof shingles.
• Repair and repaint loose siding and caulking.
• In Northern winters, keep walks neatly cleared of snow and ice.
• During spring and summer months consider adding a few showy annuals, perhaps in pots, near your front entrance.
• Re-seal an asphalt driveway.
• Keep your garage door closed.
• Store RVs or old and beaten up cars elsewhere while the house is on the market.
• Apply a fresh coat of paint to the front door.

Maximizing interior appeal
Enhance your home’s interior by:

• Giving every room in the house a thorough cleaning, as well as removing all clutter. This alone will make your house appear bigger and brighter. Some homeowners with crowded rooms have actually rented storage garages and moved half their furniture out, creating a sleeker, more spacious look.

• For Your Home Want to give your home a new look? Find advice and inspiration in our decorating section.

  Hiring a professional cleaning service, once every few weeks while the house is on the market. This may be a good investment for owners who are busy elsewhere.
• Removing the less frequently used, even daily used items from kitchen counters, closets, and attics, making these areas much more inviting. Since you're anticipating a move anyhow, holding a garage sale at this point is a great idea.
• If necessary, repainting dingy, soiled or strongly colored walls with a neutral shade of paint, such as off-white or beige. The same neutral scheme can be applied to carpets and linoleum.
• Checking for cracks, leaks and signs of dampness in the attic and basement.
• Repairing cracks, holes or damage to plaster, wallboard, wallpaper, paint, and tiles.
• Replacing broken or cracked windowpanes, moldings, and other woodwork. Inspecting and repairing the plumbing, heating , cooling, and alarm systems.
• Repairing dripping faucets and showerheads. Buying showy new towels for the bathroom, to be brought out only when prospective buyers are on the way.
• Sprucing up a kitchen in need of more major remodeling by investing in new cabinet knobs, new curtains, or a coat of neutral paint.

How does the relationship between you, your Realtor, and your lender work?

   Communication is key, especially when buying a house! So, how exactly does the relationship between your Realtor and your lender work, and how is that in your best interest?
  What you tell your lender stays between you and the lender. The only information passed to your Realtor from your lender is:
-How much you can spend
-What type of loan you may be looking for
-If you want or need the seller to contribute money towards your closing costs.

*Knowing these things ahead of time may very well save you precious time, resources, and could save some frustration! These things must be known so that you are put in the best possible position to actually purchase the house you want!
 

Foreclosure Friday 03/25/11

For those of you who like having land....This beauty of a home sits on 11.78 acres!! Asking $549,900 it boasts 5 bedrooms and 5 1/2 bathrooms! Plenty of space with 4200-4399 square feet, and is in Easley but is not in a subdivision---no HOA's!!

Want to see it? Call/text me: 843-437-6917
...or email if you prefer: jmims@kw.com

WSJ survey says more people are moving to SC than any other state!

A recent Wall Street Journal news article reported findings on its survey of "Baby Boomers" (those who are preparing for retirement, or have recently entered retirement--people born between the years of 1946-1964). WSJ asked these people where they are planning on living in retirement. Of those people surveyed, most said they were planning on moving to South Carolina!
*So if you have a family member, friend, or previous neighbor that you know is moving to South Carolina, pass the web address of this blog along. They can ask any questions that they may have!
--If they're not comfortable with computers, feel free to pass along my contact information. I would be happy to speak with them.

Image from the WSJ article:

Foreclosure Friday (new foreclosure of the week)

This 4 bedroom, 2.5 bathroom brick home offers much space at 2400-2599 square feet. It has a two car garage, and sits on over 1/2 an acre. Asking $189,000 in the Roper Mountain Plantation subdivsion. This one is worth a look!

Contact me for a personal showing!

Don't let the bedbugs bite.....or the termites!!

I have learned more about termites in the last 3 1/2 years than I had ever wanted to know. Just in case you're curious, here is some information!!

What Can You Do to Help Protect Your Home?
Small steps make a big difference in termite prevention and sustaining an effective termite treatment plan. Start by eliminating moisture conditions and food around your home. These simple steps make your home a less attractive target, helping deter termites.

Eliminate Moisture Problems Repair leaking faucets, water pipes, and a/c units Divert water from foundation Keep gutters and down-spouts clean Remove excessive plant cover and wood mulch Get rid of standing water on roof Keep all vents clear and open Seal entry points around water and utility lines or pipes Remove Food Sources Keep firewood, lumber, or paper away from foundation or crawl space Get rid of stumps and debris near house Place screens on outside vents Check decks and wooden fences for damage Wood on your home shouldn’t contact the soil Termite Warning Signs & Identification Some indications you may have a termite infestation: A temporary swarm of winged insects in your home or from the soil around your home. Any cracked or bubbling paint or frass (termite droppings). Wood that sounds hollow when tapped. Mud tubes on exterior walls, wooden beams, or in crawl spaces. Discarded wings from swarmers.

CNN Money's "Top 10 Things to Know When Buying a House"

1. Don't buy if you can't stay put.
If you can't commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner - even in a rising market. When prices are falling, it's an even worse proposition.
2. Start by shoring up your credit.
Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
3. Aim for a home you can really afford.
The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you'll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.
4. If you can't put down the usual 20 percent, you may still qualify for a loan.
There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.
5. Buy in a district with good schools.
In most areas, this advice applies even if you don't have school-age children. Reason: When it comes time to sell, you'll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.
6. Get professional help.
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.
7. Choose carefully between points and rate.
When picking a mortgage, you usually have the option of paying additional points -- a portion of the interest that you pay at closing -- in exchange for a lower interest rate. If you stay in the house for a long time -- say three to five years or more -- it's usually a better deal to take the points. The lower interest rate will save you more in the long run.
8. Before house hunting, get pre-approved.
Getting pre-approved will you save yourself the grief of looking at houses you can't afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.
9. Do your homework before bidding.
Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that's about eight to 10 percent lower than what the seller is asking.
10. Hire a home inspector.
Sure, your lender will require a home appraisal anyway. But that's just the bank's way of determining whether the house is worth the price you've agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

Are you ready to buy a home?

You've decided that you would like to buy a home....where do you go from there?!
*You'll need a source of funds for a down payment (which will run anywhere from 0%-10% of the purchase price), and closing costs (which will run anywhere from 2%-4% of the purchase price). Many loans will allow these funds to come from any "interested party" (meaning...from a relative, friend, or even the seller)
*You will need an income. Your lender will require your most recent 2-3 W2's. (Lenders used to be able to lend on "stated income" meaning that a buyer could say, "I make $100,000 per year" and that's what the lender would base the loan amount on. That's a big reason why banks got into trouble....they don't lend on stated income anymore!
*You will need a decent credit score. The lower limits of lending now are 620 for FHA.

Once those ducks are in a row, you know you are in a good financial position to buy!!!

Happy house hunting :)

Trying to save money on the purchase of your next home?

In today's market, everyone is looking for a "good deal." Why shouldn't you be? There are plenty of deals out there. It's common for people to think of the money paid to real estate agents as a way to possibly save money on the price of the home. The thinking is: "Well, if I don't use an agent and just go through the listing company, I'll save that 3% on the price!" That would be the logical thing to do. May I offer that not using a buyer's agent could possibly put you in a position where you will actually pay more for your next home, and do a whole lot more leg work than you would have if you had an agent!  (But you expected me to say that...so let me justify)

**Also, I do need to preface this by saying that there are bad apples in every profession. Are there some dishonest agents? Yes. There are 13,274 real estate companies in South Carolina...and many, many more agents. (So interview a couple agents before making your decision).

A good buyer's agent will
*Streamline the process in finding your next home, which could save you hours of time, not to mention saving that gas money!
*Have access to all properties by all agents on the MLS, as well as FSBO's
*Be able to search exclusively for distressed properties (short sales and foreclosures)
*Provide resources to help secure the financing that you need (ie: little to no money down, 100% financing, the best interest rates available)
*The mentality of coaching you through the home buying process, and heart to "fight for you." To be an outspoken advocate on your behalf.
*NEVER will divulge personal information about you, or your motivation for buying
*Will have the ability to get you the best possible deal through aggressive (fair, but assertive and confident) negotiation techniques.

If you have any questions, please call/text/email, or comment about this post!
843-437-6917
jmims@kw.com

Investors: Looking for properties?

If you are an investor looking for your next deal, ask me about the VA's Vendee Financing Program:

Highlights of the program:
**It IS available for veterans and non veterans alike!

• Seller may contribute up to 6% of the contract sales price to pay for funding fee, closing costs, prepaid and other expenses.
• Vendee mortgages are assumable by qualification.
• Vendee Financing is not a credit score driven product.
• There are two available terms, a 15 and 30 year fixed rate.

Owner Occupied purchase:
• Can be financed with as little as 0% down. The loan amount may be increased up to 2% to finance closing costs, prepaids or other expenses. Funding fee may not be financed.

Non-owner Occupied purchase:
• Can be financed with as little as 5% down. Investors may use 75% of anticipated rent based on appraiser's estimate to offset against the subject property monthly payment.
•No limit to the number of properties that you finance through VA vendee program!


Questions? Call/text or email me at 843-437-6917 or jmims@kw.com
Thanks for reading.

Article from the Wall Street Journal-- Discounts Housing discounts coming!

Discounts Expected in Spring Housing Market

By S. MITRA KALITA And DAWN WOTAPKA

Sales of previously owned homes fell sharply in February, setting the stage for steep discounting in the spring market.
The National Association of Realtors reported Monday that existing home sales dropped 9.6%, and the median price, $156,100, was the lowest since February 2002.

Buyer's Market

Existing-home sales in February

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The silver lining, say economists, is that bargain prices, coupled with low interest rates, might finally spur some buyers off the fence as the real-estate industry prepares for its busiest season. Even without the $8,000 federal tax credit that stoked sales last spring, industry watchers predict a larger number of transactions this year.
"The job market is getting better and that will make people feel more confident about their income-earning prospects," said David Berson of the PMI Group. "You need that confidence to buy a house. Household formations are also very important. ... Kids may have moved back in with their parents, or two people may have moved in together, because of job concerns. Now they can move into their own place."
Still, Monday's data painted a picture of pain and price declines that have spared no region.
"The housing market is still clearly years away from staging any meaningful recovery," Toronto-based Capital Economics wrote in a note to clients.
February sales data due Wednesday are expected to show that the market for new homes is just as lackluster as that for existing dwellings.
Some builders of new homes are increasing discounts on residences and boosting commissions to brokers.
"They don't do that if things are going well," said Alex Barron, a home-builder analyst with the Housing Research Center, an independent sell-side research firm. "The level of desperation in the builders is just going to increase substantially in the next two months, which is the heart of the spring selling season."
Overall, February's weakness could have been driven by bad weather, deals canceled over lowball appraisals and a higher number of distress sales, according to the National Association of Realtors.
A third of transactions were all-cash sales, and investors accounted for 19% of February sales activity, down from 23% in January. Low prices in many markets also reflect a new reality as sellers finally give in and reduce the asking prices on their homes in hopes of a fast deal.
"After three years of the housing downturn, people are becoming much more realistic in terms of valuing their homes," said Lawrence Yun, the National Association of Realtors' chief economist.
In Atlanta's upscale Buckhead neighborhood, Natasha Swann put her family's five-bedroom colonial on the market about six weeks ago. The $1.6 million asking price won't recoup the roughly $200,000 that Ms. Swann spent on renovations such as finishing the basement and adding a bedroom. Still, the 41-year-old mother of three is eager to sell because she is building a bigger house nearby.
After six showings, she is optimistic the home is priced competitively. "We had to be kind of aggressive" about making the price attractive, she says. "We don't know where the market's going, and I'm not going to wait a long time in an uncertain market."
Economists say the number of distressed sales will continue to rise, and put pressure on prices. But mortgage rates, which were trending upward during the fall and winter months, have been falling in recent weeks amid global turmoil over the crises in Japan. Rates for 30-year loans were well below 5% last week.
"Few think mortgage rates are going lower," said Moody's Analytics chief economist Mark Zandi. "It's more likely they will be 6% than 4% next spring. This lights a fire under buyers."

First Time Home Buyers: Need down payment assistance?

Are you a first time home buyer in South Carolina? Need additional cash for closing costs and down payment? The "Great Foundations" program is for you!! It will match your funds 5:1--meaning if you have $1,000 "Great Foundations" will give you $5,000!! This program has $1,000,000 available for 2011 and it is on a first come, first served basis. Funds are still available, but no telling how long they'll last!

Attention South Carolina home buyers!

Homeowners Mortgage is releasing Great Foundations 2010!  This program matches your funds to purchase your first home.  They have a total of $1,000,000.00 of matching funds for South Carolina clients.  But don't wait, this money will not last long!

Highlights:
-Available to 1st time homebuyers
-Assistance can be use for down payment and/or closing costs
-Homeowners Mortgage will match your funds at a ratio of 5:1 ratio, you must put down $1,000 and HMC will match it with $5,000 for a total of $6,000
-Maximum match not to exceed $7,500.  You put down $1,500 and HMC will match it with $7,500 for a total of $9,000
-Income restrictions apply

This money won't last long - contact me today! 

Home Sales in the Upstate in the last MONTH.

At the tail end of the part of the year that historically has seem homes sales slow, the greater Greenville area of South Carolina's home sales look like this:

For the period from February 21st, 2011 and ending March 21st, 2011 here are the number of sales broken down by sales price.
$100,000+    301 sales
$200,000+   113 sales
$300,000+   53 sales
$400,000+    28 sales
$500,000+     14 sales

Explanation: 301 homes $100,000+ sold in the last 30 days. Of those 301 homes, 113 were priced $200,000+. Of the 301 sales, 53 were priced $300,000+....and so on.

****Bottom line*** 32% of the home sales in the greater Greenville area were at prices $300,000 or more! The lesson we can learn from this: If people who have been successful at managing their money by making wise investment decisions are buying homes right now.......it's most likely a good financial decision for us to also consider buying a home.

Feel free to contact me with any questions you may have!
843-437-6917
jmims@kw.com

Happy first day of Spring!

"Winter" is finally over, and we turn our thoughts onto more outdoorsy activities! Spring is my favorite time of the year, it seems to provide a "new beginning" and new opportunities 3 months after the "New Year!" When I think of spring, I think of gardens....and planting...and weeding....and watering...and weeding...well, you get the picture!

I am attaching information from the local Clemson Extension office regarding planting dates for garden vegetables. Very helpful for the green thumbs out there!

Home & Garden Information Center

CU › Cooperative Extension › HGIC › Landscape, Garden & Indoor Plants › Vegetables, Fruits & Nuts › Vegetable Gardening › HGIC 1256 Planning a Garden

Planning a Garden

Prepared by Bob Polomski, Extension Consumer Horticulturist, Clemson University. (Revised 01/05. Image added 01/09)
HGIC 1256
Printer Friendly Version (PDF)
Home garden vegetables can be grown abundantly in most areas of South Carolina with proper care. Many who have grown vegetables for the excellent fresh flavor or as a hobby now find home gardening profitable with today’s high food costs.
The number of home vegetable gardeners is steadily increasing in the state. Success or failure of home vegetable production can depend on many things, but some major reasons for failure are negligence, not following the proper instructions and not keeping up with current vegetable developments.

Planning the Vegetable Garden

When planning a garden, it is important to ask a few basic questions:

• Who will be doing the work? Will the garden be a group project with family members or friends who will work willingly through the season to a fall harvest, or will you be handling the hoe alone in between camping and swimming? Remember that a small weed-free garden will produce more than a large, weedy mess.
• What do you and your family like to eat? Although the pictures in the garden catalog look delicious, there is no value in taking up gardening space with vegetables that no one eats. Make a list of your family’s favorite vegetables, ranked in order of preference. This will be a useful guide in deciding how much of each vegetable to plant.Successive plantings of certain crops, such as beans, can be harvested over a longer period of time and increase your yield. As you plan, list recommended varieties and planting dates.
• How do you plan to use the produce from your garden? If you plan to can, freeze, dry or store part of the produce, this will be a factor not only in planning the size of the garden but also in selecting varieties. Some varieties have much better keeping quality than others. Care should be used in choosing the seeds, making sure the varieties you select are adapted to your area and intended use.
• Finally, how much space is available? How much area can be converted into usable garden space, and how much garden do you need? Do not plant more garden than you need.

Additional Planning Hints

• Plan the garden on paper first. Draw a map showing arrangement and spacing of crops. If you wish to keep the garden growing all season, you may need a spring, summer and fall garden plan.
• Plan the garden and order seeds by January or February. Some plants may be started indoors as early as January.
• In your plan, place tall and trellised crops on the north side of the garden so they will not shade the shorter vegetables.
• Group plants by length of growing period. Plant spring crops together so that later crops can be planted in these areas after the early crops mature. Consider length of harvest as well as time to maturity. Place perennial crops to the side of the garden where they will not be disturbed by annual tillage. Finally, practice crop rotation. Try not to plant the same vegetable or a related vegetable in the same location year after year.

Site Selection

The garden should be as small as possible to cut down on unnecessary work. In South Carolina, gardens should receive at least six hours of direct sun each day. Leafy vegetables can tolerate partial shade; vegetables that produce fruit, such as peppers and tomatoes, must be grown in full sun.
Avoid planting your garden close to or beneath trees and shrubs because shade and the competition for nutrients and water may reduce vegetable growth. If a garden must be planted near trees, reserve the sunniest spot for vegetables grown for their fruit or seeds.
Plants grown for their leaves or roots can be grown in partial shade. Because water is required by vegetables, especially during droughty periods, a site within close proximity to the house should be considered; this site is usually located close to an abundant water supply. Also, people are more likely to work in the garden and check for pests when the garden is close to the house.
When soil or landscape space is unavailable, vegetables can be grown in containers. As long as light, water and soil volume requirements are met, container-grown vegetables can be placed anywhere: sidewalks, patios, window boxes, porches or balconies. More information on vegetable gardening in containers is available in HGIC 1251, Container Vegetable Gardening.
Sloping areas are satisfactory if managed properly. Contour the rows to the shape of the slope (plant around the hill). Construct terraces if erosion results even with contoured planting.
Gardeners with poorly drained or steeply sloped sites can improve their sites through the use of raised beds. A permanent raised bed can be created with used cross ties, concrete blocks or similar rot-resistant material. The completed form can then be filled with a mixture of good topsoil and compost. Permanent raised beds are easy to maintain, and require less effort to control weeds and overcome poor soil or site problems. Raised beds can be any size, but narrow beds (about 3 to 4 feet wide) will allow the gardener to reach the center of the bed without stepping into the bed. More information on raised beds is available in HGIC 1257, Raised Beds.

Season of Planting

The time at which vegetables are planted outdoors depends on the cold hardiness of a particular species or cultivar. Vegetables can be divided into two categories based on temperature requirements: cool-season and warm-season crops.
Cool-season vegetables originated in temperate climates and have their favorable growth period during the cool parts of the year. Cool-season crops grow poorly in summer heat. Though cool-season crops continue to grow well past the earliest freeze in the fall, they should be started early enough to mature before hard freezes are expected.
Warm-season crops primarily came from subtropical and tropical regions and require warm weather for seed germination and plant growth. They are injured or killed by freezing temperatures and should not be planted outdoors in the spring without protection or until the danger of freezing temperatures is past. Warm-season crops planted in the summer to mature in the fall should be planted early enough so they can be harvested before the killing freeze in the fall.
To determine when to plant cool- and warm-season vegetables in South Carolina, refer to Table 1. Knowing the number of days required to reach maturity, a gardener could determine the appropriate planting time for seeds and transplants by using the average dates of the first and last freezes in their area.

Piedmont: Abbeville, Anderson, Cherokee, Chester, Edgefield, Fairfield, Greenville, Greenwood, Lancaster, Laurens, McCormick, Newberry, Oconee, Pickens, Saluda, Spartanburg, Union and York counties.
Central: Aiken, Allendale, Bamberg, Barnwell, Calhoun, Chesterfield, Clarendon, Darlington, Dillon, Florence, Kershaw, Lee, Lexington, Marion, Marlboro, Orangeburg, Richland and Sumter counties.
Coastal: Beaufort, Berkeley, Charleston, Colleton, Dorchester, Georgetown, Hampton, Horry, Jasper and Williamsburg counties.
 

Table 1. Planting Chart — Dates to Plant in South Carolina

	Piedmont		Central		Coastal
Vegetable	Spring	Fall	Spring	Fall	Spring	Fall
1Transplant plants. 2For longer harvest season, plant at intervals during suggested dates. 3Seed potatoes for July planting and fall harvest may have to be mailed-ordered (usually unavailable from local garden supply stores).
Asparagus	Early Feb.- Late Mar. (crowns)	—	Late Jan.- Early Feb. (crowns)	—	Early Jan.- Late Feb. (crowns)	—
Beans, Snap	Apr. 15-30	Aug. 1-15	Apr. 1-15	Aug. 5-20	Mar. 15-30	Aug. 15-30
Beans, Pole	Apr. 15-30	July 15-25	Apr. 5-20	July 20-30	Mar. 20-30	Aug. 1-10
Beans, Half-runner	Apr. 15-30	Aug. 1-15	Apr. 1-15	Aug. 5-20	Mar. 15-30	Aug. 15-30
Beans, Lima	May 1-15	July 1-15	Apr. 5-20	July 20-30	Mar. 20-30	Aug. 1-10
Beans, Pole Lima	May 1-15	July 1-15	Apr. 5-30	July 15-20	Mar. 20- Apr. 15	July 20-30
Beans, Edible Soy	May 10- June 15	—	May 10- July 1	—	May 10- July 15	—
Beets	March 1-30	Aug. 1-15	Feb. 1-28	Aug. 1-20	Dec. 15- Jan 30	Aug. 1-20
Broccoli1	Mar. 1-15	July 1-30	Feb. 20- Mar. 10	July 20- Aug. 15	Feb. 15- Mar. 1	Aug. 10- Sept. 15
Brussels Sprouts	—	July 15- Aug. 15	—	Aug. 1-15	—	Aug. 1-15
Cabbage1	Feb. 15- Apr. 1	July 1-30	Jan. 15- Mar. 1	July 25- Aug. 10	Dec. 1- Jan 15	Aug. 1-15
Cantaloupe & Honeydew	Apr. 15- May 15	June 15-30	Apr. 1-15	—	Mar. 10- Apr. 10	—
Carrots	Mar. 1-15	July 1-30	Feb. 10-28	Aug. 1-15	Dec. 15- Jan 30	Aug. 1-20
Cauliflower1	Mar. 1-15	July 1-15	—	July 25- Aug. 10	—	Aug. 1-20
Collards	—	July 1- Aug. 30	Feb. 25- Mar. 20	July 15- Aug. 15	Feb. 20- Mar. 15	Aug. 1-25
Cucumbers	Apr. 15- May 15	July 1-15	Apr. 1-15	Aug. 1-10	Mar. 20-30	Aug. 1-20
Eggplant1	May 1-15	July 1-15	Apr. 10-25	July 10-20	Mar. 25-Apr.10	July 20-25
Garlic	—	Sept. 1- Oct. 30	—	Sept. 15- Nov. 15	—	Oct. 1- Nov. 30
Kale	—	Aug. 15- Sept. 15	—	Aug. 15- Sept. 15	—	Aug. 15- Sept. 15
Lettuce	Mar. 1-15	Aug. 15-25	Feb. 1-28	Aug. 15-25	Dec. 20- Feb. 5	Aug. 15-25
Mustard2	Feb. 1- Mar. 15	Aug. 15- Sept. 15	Jan. 15- Feb. 25	Aug. 15- Oct. 1	Jan. 1- Feb. 25	Aug. 15- Oct. 1
Onion, Sets	Mar. 1-30	Sept. 1- Oct. 30	Feb. 15- Mar. 15	Sept. 15- Nov. 15	Feb. 1- Mar. 1	Oct. 1- Nov. 30
Onion, Plants	Mar. 1-30	—	Feb. 15- Mar. 15	—	Feb. 1- Mar. 1	—
Onion, Seeds	—	—	—	Sept. 15- Oct. 15	—	Oct. 1- Oct. 30
Okra	May 1-15	June 15-30	Apr. 10-30	June 15-30	Apr. 1-20	June 15- June 30
Peanuts	May 1-15	—	Apr. 15- May 15	—	Apr. 25- May 15	—
Peas, Garden	Feb. 1-15	—	Jan. 20-30	—	Jan. 10-20	—
Peas, Southern	May 1- June 30	—	Apr. 10-30	June 20-30	Mar. 25- Apr. 15	Aug. 1-10
Pepper1	May 1-30	July 20-25	Apr. 5-25	July 15-25	Mar. 25- Apr. 10	July 20-25
Potatoes, Irish	Mar. 15-30	July 1-153	Feb. 20- Mar. 10	July 15-303	Feb. 1-15	July 15-303
Potatoes, Sweet	May 10- June 10	—	May 1- June 15	—	Apr. 15- July 1	—
Pumpkins	—	June 1-15	—	June 15-30	—	July 1-15
Radish2	Feb. 15- Mar. 15	Sept. 1-30	Feb. 1-28	Sept. 1- Oct. 25	Jan. 1-Mar. 1	Sept. 1- Nov. 1
Rutabaga	—	Aug. 1-20	—	July 25- Aug. 10	—	Aug. 1-20
Spinach2	Feb. 15- Mar. 15	Sept. 15-30	Feb. 1-28	Sept. 15- Oct. 20	Jan. 1- Feb. 25	Sept 15- Nov. 10
Sweet Corn2	Apr. 15-30	—	Mar. 20- Apr. 30	—	Mar. 10- Apr. 30	—
Squash, Summer	Apr. 15- May 15	July 1-20	Apr. 1-20	Aug. 1-15	Mar. 20- Apr. 10	Aug. 10-25
Squash, Winter	Apr. 20- May 15	—	Apr. 15-30	—	Mar. 20- Apr. 10	Aug. 10-25
Tomato1	May 1- May 30	July 10-20	Apr. 5-25	July 10-20	Mar. 25- Apr. 10	July 25-30
Turnips2	Feb. 20- Apr. 1	Sept. 1-15	Feb. 1- Mar. 10	Aug. 1-Oct. 1	Jan. 1-Mar. 1	Aug. 25- Oct. 15
Watermelon	Apr. 20- June 30	—	Apr. 1-30	June 15-30	Mar. 25- Apr. 20	—

Table 2. Vegetables Planting Chart

Vegetable	Seed (100-foot row)	Row Spacing (inches)	Planting Depth (inches)	Approximate Days to Harvest
*Transplants
Asparagus	—	36 x 18	4 crowns	2 years
Beans, Snap	¾ pound	36 x 2	1	50-60
Beans, Pole	½ pound	36 x 4	1	60-70
Beans, Half Runner	½ pound	36 x 2	1	55-65
Beans, Lima	¾ pound	36 x 3	1½	65-75
Beans, Pole Lima	½ pound	36 x 6	1½	70-75
Beans, Edible Soy	½ pound	36 x 3	1	60-70
Beets	½ ounce	30 x 2	¾	50-60
Broccoli	½ ounce	36 x 18	½	60-70
Brussels Sprouts	½ ounce	36 x 18	½	90-100
Cabbage*	½ ounce	36 x 12	3	60-80
Cantaloupe	1 ounce	60 x 24	1	75-85
Carrots	¼ ounce	30 x 1	¼	60-70
Cauliflower	¼ ounce	36 x 18	½	60-70
Collards	½ ounce	36 x 8	½	60-70
Cucumbers	1 ounce	60 x 12	1	50-60
Eggplant*	—	36 x 18	3	70-80
Kale	½ ounce	36 x 1	½	50-55
Lettuce, Leaf	¼ ounce	30 x 2	½	40-70
Lettuce, Head	⅛ ounce	30 x 12	¼	30-50
Mustard	½ ounce	30 x 2	½	40-60
Onions, Green	1 quart	30 x 2	1½ sets	35-45
Onions, Bulb	½ ounce	30 x 3	½ seed	100-120
Okra	1 ounce	36 x 9	¾	60-70
Peanuts	¼ pound	30 x 4	1½	100-120
Peas, Garden	1 pound	36 x 1	1½	65-80
Peas, Southern	½ pound	46 x 4	1½	75-85
Pepper*	—	36 x 18	3	60-70
Potatoes, Irish	12 pounds	36 x 12	3	90-110
Potatoes, Sweet*	—	36 x 8	3	120
Radish	½ ounce	24 x 1	½	25-30
Rutabaga	½ ounce	36 x 12	¾	100-110
Spinach	1 ounce	30 x 2	½	50-60
Sweet Corn	4 ounce	36 x 10	1	80-95
Squash, Summer	1 ounce	36 x 15	1	50-60
Squash, Winter	½ ounce	60 x 48	1½	90-120
Tomato*	—	60 x 24	4	70-80
Turnips	¼ ounce	30 x 2	½	60-70
Watermelon	½ ounce	60 x 60	1½	80-100

Excerpted from the South Carolina Master Gardener Training Manual, EC 678.
Page maintained by: Home & Garden Information Center

Buyers: "The Donald" says "BUY"!!!

Once-in-a-Lifetime Opportunity for Buyers?

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Business Insider’s Money Game interviewed real estate expert Barbara Corcoran earlier this week. This is what she said about buying in this market:

“We have a regular real estate miracle happening right now. We not only have record low prices, but we also have cheap money.”

A second real estate icon, Donald Trump,  just a few weeks ago said:

“This is a great time to go out and buy a house. And if you do, in 10 years you’re going to look back and say, ‘You know, I‘m glad I listened to Donald Trump’.”

Maybe it’s time to start listening to the people who have made fortunes buying and selling real estate. They may know best!!

Greenville named Bloomberg Businessweek's #1 in rental rate increase:

  More and more people are moving to the beautiful Upstate!
The average monthly rent payment is $669. That would equate to a purchasing power of $130,000 for a home at today's current interest rates. An interest rate increase of only 0.25% will decrease the purchasing power to around $122,000.
**If you have any aspirations of buying a home in the near future, but think you have to rent for a while for whatever reason (credit, source of money down, want to wait for prices to "hit bottom"), please give me a call. It's my job to help you buy, and I've got lots of resources to help in the process.
843-437-6917

Twenty-Five American Cities with the Biggest Rent Hikes

Courtesy of the City of Greenville, S.C.

No. 1 Biggest Rent Hike: Greenville, S.C.

Annual increase: 11.2%
Average monthly rent: $669
Vacancy rate: 7.7% (9.5% in 2009)
Average concession: -4%

The largest rent increase in the Greenville metro, home to Michelin, GE, Fluor, and Lockheed Martin, was 11.6 percent in parts of south Greenville County, according to AXIOMetrics. Unemployment in the Greenville-Mauldin-Easley area fell to 9.8 percent last year, based on BLS preliminary estimates, from 10.5 percent in 2009. The area saw an uptick in manufacturing activity as GE ramped up production at its gas turbine manufacturing plant. Southwest Airlines launched new flights to the area last year. Also, electric bus maker Proterra announced a new research and development facility that is expected to create 1,300 new jobs in Greenville County over the next seven years.