Owners of Murrells Inlet real estate priced over $500,000 are seeing some of the largest price declines in the market. The most recent example turns out to be a New Construction located in a Gated Community with all the bells and whistles including a dock on the water with access to the ICW. After coming on the market priced above $1,100,000 in April of 2008 and having several price adjustments to a final list in the low $900’s the property recently sold over $100k below the final asking price.
On average the properties selling in this price point since January 1, 2009 have been on the market 376 days and surely appear to have been chasing a down market. Of the homes sold the average sale prices are over $290k below list price with the largest being $568k and the lowest $115k.
Owners of all area Real Estate need to make sure their REALTOR® sets the original list price in line with actual sale prices in their neighborhood and has a plan for price reductions in place should the market continue to decline. Using real time data to educate you about your homes current value based on current market conditions should be part of every discussion when selling your home in order to avoid chasing the market down to effect a sale. Copyright 2009, Sandra Bundy, Broker-in-Charge, B&P, Inc.
Murrells Inlet and the surrounding communites have seen tremendous growth in new housing for several years prior to the current slow down in new home building in the area. The lure of the new home can be strong especially for buyers who need more space and have outgrown their current property. It is important for these buyers to give strong consideration to what they are leaving behind prior to making such a move to avoid regret after their next home purchase.
Prior to the housing boom in Murrells Inlet, many of the homes were built on good sized lots in neighborhoods without HOA restrictions. As new housing options came onto the market and demand skyrocketed, builders took great advantage of building larger homes on smaller lots.
A friend recently related to me that the big new home purchase of a co-worker turns out to be one of regret. It seems the spacious new home with all the trimmings got her hooked but after living in the new neighborhood on the tiny lot in hindsight was not the best move. Walking outside in her small yard and being able to touch her neighbor was more than she bargined for when breathing room would have suited her better.
Not all home buyers need breathing room and large homes on small lots with little maintenance is the draw but if you are a buyer in the market for a new home, make sure your REALTOR® is looking out for your interest in your next home purchase. Pointing out what you are giving up for the new and advising you of the potential in your current property are good places to start. Copyright 2009, Sandra Bundy, Broker-in-Charge, B&P, Inc.
In an effort to curb mortgage fraud and lender pressure on appraisers to bring properties in at certain values the HVCC is now in effect and as some expected could do more harm to the already stressed housing markets. What started out as good intentions can and likely will lead to unintended consequences including extended real estate closings.
All appraisal services for loans that will be sold to Freddie and Fannie must abide by the new rules and a slew of Appraisal Management Compaines have set up new businesses to handle the third party requirements for appraisal services. The catch is that some of the Appraisal Management Companies in turn are owned by major lenders.
No doubt there will continue to be changing regulations and likely changes to the regulation of these new Appraisal Management Companies. In the meantime, buyers should expect a minimum of 45 days to close on home purchases. Contact Sandra Bundy for more information. Copyright© 2009 , Sandra Bundy, Broker-in-Charge, B&P, Inc.
Homeowners along the Grand Strand are facing difficult times especially those who have mortgages and have lost income due to the slowing economy. While many workers have the safety net of unemployment benefits the self employed are not as fortunate since many who work as independent contractors may not qualify for an unemployment check. Cutting unnecessary expenses is one way to save cash for getting through the tough times but many need to take a harder look if they are unable to pay the mortgage to determine if they can afford to keep their current home.
Depleting savings to keep a home may work for some who have lost income but turning to credit cards is a dangerous path when it is only postponing the inevitable. Homeowners need to take a serious look at spending habits by putting income and expenses in writing. If monthly expenses are higher than income look for ways to cut expenses to the bare minimum. If you don’t have positive cash flow it may be time to sell your home.
A temporary loss of income is one thing but if months go by without enough income to cover mortgage payments it could lead to foreclosure. Homeowners should contact their lender at the first sign of trouble and keep the lines of communication open. Make sure to document all contacts with your lender and provide them with accurate financial information. Foreclosure is a last resort as lenders are willing to work with homeowners to keep them in the home if possible.
Loan modifications could be the answer for some homeowners and this can be achieved if you have the cash flow to support a change in your mortgage terms. Lenders may also offer other options to foreclosure in some cases. By taking a hard look at your financial situation you can take steps necessary to keep your home or determine that it is something you can no longer afford. Copyright© 2009. Sandra Bundy, Broker-in-Charge B&P, Inc.
No matter which side of the transaction you are on buying or selling in a short sale situation can test even the most savvy consumer. Buyers and sellers should understand the process to determine if it is feasible for their specific situation. While a buyer and seller may agree on the initial terms of the transaction it is up to the lenders to make the final determination.
The need for a short sale generally arises due to unforeseen circumstances of homeowners with limited equity who are unable to pay their mortgage. Job loss, divorce, illness and death of a spouse can all lead to financial difficulties that make it necessary for families to relocate. Declining home values in some areas add to the need for a short sale. It is very important to keep open lines of communication with lenders at the first hint of trouble.
By working with your lender and exploring available options you can determine if you need to consider a short sale since short sales are generally an option to avoiding foreclosure. You must provide up to date financial information and proof of income to the lender, along with hardship letters explaining why you are unable to meet your mortgage obligations. The lender will likely request any and all documentation relating to the reasons for the financial distress including current bank statements. If there is more than one mortgage both lenders must agree to the sale.
While buyers can get a bargain on a short sale property closing can take much longer than tradition purchases and delays can occur. Most often the property will be sold in ‘as is’ condition and if any repairs are needed it will be up to the buyer to have funds for the repairs. Waiting for lender approval on a short sale can take weeks in most cases and many buyers get discouraged due to the delays.
Short sales are generally listed just like any other homes for sale but due to the limited time to sell are often offered at a discount. Like a normal sale the buyer and homeowner must agree on price and your REALTOR® can help you determine current market prices. Problems will arise if the agreed price is out of line with market prices. If the short sale list price is well below market value this could be a red flag since a lender will not normally agree to unrealistic sale prices. Offering full price on a deeply discounted listing is no guarantee the lender will agree to the sale.
Short sales offer solutions for homeowners who face financial difficulties and discounts for buyers looking for a home to purchase. Understanding the process, having realistic expectations and a REALTOR®
Short sales offer solutions for homeowners who face financial difficulties and discounts for buyers looking for a home to purchase. Understanding the process, having realistic expectations and a REALTOR® experienced with short sales can help you determine if a short sale is right for you. Contact Sandra Bundy for more information. Copyright© 2009 , Sandra Bundy, Broker-in-Charge, B&P, Inc.
Across this country homeowners are in financial trouble especially those families that lost jobs in the last several months that has pushed the Nation’s Unemployment Rate to the highest it has been in many years. The fear in our economy is growing and along with it so are the unemployment lines. Undoubtly the number of foreclosures will also continue to rise. Understanding the reasons for and the effect foreclosures have on any given market is essential in order to evaluate home values and why foreclosures have far reaching effects in areas hit by the foreclosure crisis.
Busting the Housing Bubble – Certainly there are a large number of homeowners who purchased more home than they could afford by falling prey to lenders with numerous creative financing options. Sad but true, these buyers and maybe your neighbor falls under this senario. They bought in the best neighborhood or school district and their ARM is about to or has already reset to a monthly payment that is more than they can now afford. They honestly had all intentions and the good credit to refinance before the loan reset or they planned to sell before the higher interst rate kicked in and higher payment would be their responsibility. We all know how this story ended and see the fallout daily with falling home prices and increasing foreclosures.
Mortgage Fraud – In the Coastal Market I would suspect there could be a number of cases where individuals claimed they were going to use property as a second home on the loan application. Having no intention of occupying the property and placing it back on the market for sale hoping to reap gains by appreciating home prices could have drawn any number of scammers to participate in such actions for a quick profit. Another storybook ending with default and foreclosure that have a definite effect on the innocent homeowners losing value.
Family crisis – Life events such as job loss, divorce, illness or death of a family member are indeed a tradegy in that many of these families end up with financial difficulties that lead to foreclosure. Again if this is someone in your neighborhood, chances are your home value will suffer. One bright spot for individuals that find themselves facing one of these events should be able to work with their lender to avoid foreclosure but it takes honest efforts on the part of the homeowner and communication with the lender should not to be delayed.
The effect on your homes value is directly tied to the number of foreclosures in your neighborhood. In newer neighborhoods builder closeouts and special offers can also put a strain on home prices. Sure prices will rebound but if you need to sell your home in the coming year and there are foreclosures or short sales in your neighborhood your home value will suffer.
It is said that for every foreclosure in a neighborhood that home prices can decline by as much as $10,000. Real Estate is and will remain a solid investment in our families overall wealth and offers advantages over the long term. By nature all real estate prices are local and if foreclosures are increasing in your neighborhood consult your agent for how it is affecting your home value. Contact me for more information. Copyright©2008 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.
