Charleston South Carolina Real Estate

Learn more about the Charleston Area

Posted Friday, February 05, 2010 9:28 AM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Events, Community Information, charleston real estate, charleston market, charleston homes for sale, using a buyers agent, transfer to Charleston, homes for sale in Charleston, moving to Charleston, charleston housing market, Charleston Air Force Base, Charleston Schools, mt pleasant recreation, fun in Charleston, Mount Pleasant, community resources, where to live in Charleston, news in Charleston, parks in the Charleston area, reasons to buy a home in South Carolina, move to Mount Pleasant

Getting Rid of Point of Sale Assessment? - SC Property Taxes

Deep inside all of us we have a sense of fairness and balance. As citizens of the United States, we expect our governmental entities to create fair laws and apply those laws evenhandedly. When the consequences of the law result in inequity, we just plain don't like it and we want it changed.

Back in 2006, citizens of South Carolina voted to enact a law that sounded very good on its face: the point-of-sale law for real property. How was this change sold to the citizens of South Carolina? Most people looked at the proposition as a way to lower taxes. In a time when home values in South Carolina were rising quickly, most people were concerned over the potential for property taxes skyrocketing.

The Realtors' Association of South Carolina has appropriately dubbed this as the "Unfair Tax" . The tax hurts homeowners, renters, investors in rental property, home buyers or sellers, anyone involved in the real estate business, employment opportunities for job seekers and even new business development; plus, it has the unintended consequence of cultivating an atmosphere of inequity among neighbors.

When proposed, law did appear to have some merit so it was widely supported. After all, most people saw this as a means to control taxes and to limit windfalls to local municipalities - not trusted for exemplary fiscal restraint. In addition, the change in the law was packaged with another change seen as positive: the removal of public schools' operating expenses from property tax bills (to be replaced by a 1% sales tax - effectively reducing property taxes on a primary residence of by between 40% and 60%). Today, polls indicate that this law is in strong disfavor among tax payers.

Here's the rub. Rather than improving the general welfare of the citizens of SC, the unexpected consequences of the point-of-sale tax include significant damage to the South Carolina economy and palpable discord among neighbors. The point-of-sale law in South Carolina simply is not fair and needs to be eliminated ASAP.

The premise of the law is simple: tax a home for what it is worth. Determine what it is worth by the sales price. Makes sense, right? No matter how sensible the law sounds, a quick look at the consequences of this law reveals that the effect is to create an inequitable, duel system of property taxation.

Suppose you are moving to the state of South Carolina and decide you want to purchase a home in a nice neighborhood in Summerville. You go to closing and get the keys and begin enjoying your fine new home. Each month you make your mortgage payment, including an escrow for taxes. All is well.

One day, in a casual conversation with your next door neighbor, who purchased his home several years ago, you discover he is paying dramatically lower taxes than you are. Although you both live in homes that are nearly identical in every aspect, your kids all attend the same Dorchester District 2 Schools, you drive on the same roads and have the same services provided by your the City of Summerville and by Dorchester County, as a homeowner who purchased after the point-of-sale tax went into effect, you carry a significantly higher tax burden. You are paying more than your next-door neighbor for exactly the same services. In effect, you are subsidizing your neighbor.

How could this happen? It's no mystery. The value of your house for tax purposes is based on a completely different method. You are being charged based on the actual sales price of your home. Your neighbor is being taxed based on the tax assessed value of his home.

Periodically, your neighbor's home is assessed by the tax assessor's office. South Carolina has a 15% increase limit for assessments per every five years. So your neighbor has the advantage of having his home's tax based on an assessment, which is typically lower than actual market value and which is capped to a maximum of 15% increase for any given five year time period. That's great for your neighbor. It's not so great for you.

So, the first effect of the point-of-sale system that is that it creates an imbalance in property taxes within neighborhoods. Some might even conclude that we are punishing people who buy homes. In fact, you might even contend, as the South Carolina Association of Realtors does, that this punishing effect results in discouraging home purchases. Studies do show that increasing property taxes in an area will have the impact of lowering home ownership rates.

How much of a difference does this actually make in dollars for you? Here's the basic tax formula for property taxes on homes in South Carolina: (millage rate X assessment ratio X value) - tax credits. The assessment ratio for a primary residence is 4% and it is 6% for rental property (10% for commercial).

For the sake of simplicity, let's ignore tax credits and make a few assumptions. You bought your property for $300,000 and your neighbor's assessment for his property is $250,000. The millage rate is assumed to be 219.6 and your assessment ratio is 4% (primary residence):

You pay .2196 x 300000 x .04 = $2635 Your neighbor pays .2196 x 250000 x .04 = $2196 . In this case your neighbor has all the same benefits you have living in the same community; but, you get to pay $439 a year more in taxes.

Let's take this inequity one step further and consider what would happen if you and your neighbor both decided to rent your homes to someone else. South Carolina applies a 6% assessment ratio for rental property rather than a 4% assessment ratio that is applied to a primary residence. The disparity grows between what you pay and what your neighbor pays. The greater the assessment ratio, the more of a gap that is created between the tax burden of the two identical properties.

You pay .2196 x 300000 x .06 = $3953 Your neighbor pays .2196 x 250000 x .06 = $3294 . In order for you to realize the same return on the rental investment property, you will need to charge your renter $659 per year, or about $55 a month, more than your neighbor will charge for exactly the same product. Or, another way to look at this is that your neighbor will be able to earn, on his property, $55 more per month than you will just because of the difference in how taxes have been designed.

Another interesting dilemma comes into play when considering downsizing. Suppose you are an individual who has lived in your home for a number of years. You now want to sell your home and downsize because your children are grown up and you're "getting up in years". To your great surprise, your new home, smaller in size and lower in market value, may well carry with it a higher tax burden for you. That's right ... this law has the impact of punishing those who want to change homes - seen most obviously through those who are choosing to downsize. As you might expect, this has a disproportional impact on senior citizens.

The P.O.S. system is not equitable neighbor to neighbor. But, this is not the only problem. This tax problem also hits businesses.

Remember that when you increase the assessment ratio, you amplify the effect of this inequity. The assessment ratio for commercial property is 10%. Businesses in competition, often with very tight profit margins, must consider taxes. If you think about the effect on two similar businesses, located in the same area, where one pays lower taxes than the other and you will understand how this disparity in taxes can damage competition.

Also, businesses considering locating to this area are less likely to do so as taxes increase. The point-of-sale law definitely increases taxes for new businesses. Clearly, in a state that has high unemployment, discouraging the establishment of new businesses can't be a good idea.

The effect of this point-of-sale law is to create an unfair, unjustifiable dual system for taxation of property. The South Carolina real property point of sale law is simply a bad law. Let's get rid of it!

Sincerely,
Chris DeLoach, MAT, MEd, ABR, SFR, BIC
House Plan Realty, LLC 843-654-4578 / 866-379-8486 fax

Posted Tuesday, February 02, 2010 12:35 PM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Real Estate, Seller Information, Community Information, Taxes and Summerville, Selling your home, Goose Creek, Hanahan, Summerville, New Communities, Dorchester County, Dorchester Schools, charleston real estate, charleston mls, Charleston market conditions, charleston sale, charleston home sales, charleston market, charleston homes for sale, new construction in charleston, charleston real estate rebate site, MLS, chris deloach, buyer advocates, transfer to Charleston, boeing welcome, boeing relocation, homes for sale in Charleston, boeing in Charleston, charleston jobs, market conditions, moving to Charleston, charleston housing market, PCS to Charleston, summerville housing, house hunting in Charleston, military in Charleston, goose creek housing, military realtor, Charleston Air Force Base, charleston housing, CAFB PCS, point of sale assessments, property taxes in sc, taxes in sc, charleston home values, Summerville Schools, Charleston Schools

The local tax man does not know what your home is worth

When looking for a new home, taxes are an important consideration. My clients often ask me about the tax assessed value of properties and question why the tax assessment is usually lower than the market value of the home. First-time home buyers frequently wonder why the value for most homes, as posted on the tax roll, is actually less than what the home is listed for on the MLS. This is a reasonable concern. No one wants to pay more than what a home is worth.

Confusion stems from the assumption that taxing authorities have a way of accurately calculating property values. They don't.

Taxing authorities have formulas for developing assessed values but their purpose is not to come up with market valuations for home marketing purposes. The purpose of the taxing authority is to tax. Unlike real estate professionals, municipalities have no need to determine a true fair market value for a home. Tax valuations should never be used for determining whether or not a home is priced appropriately.

Why do we have tax assessments of real property anyway? As a society, we've elected to tax based on home value with the implied assumption that people who have more expensive homes use more services - and can better afford the burden of taxation.

Since municipalities are tasked with using property values in their calculations for determining an individual property's tax burden, they need to have a system for determining the value of properties. The tax assessor's office hires individuals who do their best to come up with a reasonable valuation figure. This figure is seldom better than a best guess estimate. In fact, it is rarely accurate within 5% - 10%.

What a home is worth is determined by taxing authorities, not in an absolute sense, but in a relativistic sense. That is, property taxing authorities don't need to know what your home is really "worth"; rather, what they need to know is what your home is worth in relation to other homes in the community so that you can pay your fair proportion of taxes.

This basic fact is why tax assessed values of homes nearly always fall below actual market valuations. For political expediency, taxing authorities knowingly underestimate the value of homes. Yes, I'm actually asserting that much of this under estimation is done on purpose. Your tax assessor's office - and politicians - recognize that tax payers are more accepting of taxes when they feel they are not being overly burdened.

When a taxpayer has a tax bill that shows the assessed value of the home to be less than what he or she personally knows to be the true value, it feels great. In fact, it feels like you just might be "getting one over" on the tax assessor's office. It is a good, pacifying, feeling. Do you see the utility in that? Consider also that homeowners can contest assessments. Low assessments reduce the cost of managing disputes by citizens and also promote positive relations.

This "good deal" for the homeowner makes no difference whatsoever to taxing authorities because what is important to them is that the correct proportion of taxes is collected from each residence so that the total tax receipts equal budgetary needs. That is to say, that it really doesn't matter exactly what your home is worth to the taxing authorities - what matters is what they collect from you. It is all about how much you should pay in absolute terms - and how much your neighbor should pay - so that sufficient tax collections are achieved.

If a municipality needs $100 million to operate, it doesn't matter to them that homes are assessed at 10% below true market as long as the assessments are uniform and justifiable AND as long as the $100 million is collected. What is important is to keep home assessments in balance within the municipality so that taxes are collected fairly and as per the desires of the taxed citizens.

In my next blog, I will discuss the problems SC now has with the point of sale assessment for real property - a method that virtually ignores the concept of fairness in the taxation of real property.

Sincerely,
Chris DeLoach, MAT, MEd, ABR, SFR, BIC - Realtor
House Plan Realty, LLC 843-654-4578 / 866-379-8486 fax

Search for homes for sale in the Charleston area

Posted Tuesday, February 02, 2010 12:04 PM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Real Estate, Community Information, Taxes and Summerville, Charleston new homes, selling in Charleston, Summerville, Dorchester Schools, charleston real estate, charleston mls, charleston sale, charleston homes for sale, charleston real estate rebate site, MLS, chris deloach, transfer to Charleston, homes for sale in Charleston, moving to Charleston, charleston housing market, PCS to Charleston, house hunting in Charleston, military in Charleston, military realtor, charleston housing, point of sale assessments, property taxes in sc, taxes in sc, charleston home values

Military PCS to Charleston

PCS - permanent change of station ... As a military member, you know the strong emotions that this phrase brings. How will this change impact my family? What is the new area like? How are the schools? Will we be better off than we are at our current duty station? Will the community be supportive or will we feel uncomfortable living there? Should we buy a home, live on base, or rent?

You know the concerns and the stress that come along with all of the changes. As a former military member and son of a military member, so do I. Having served in the military and grown up in a military household, I know the PCS challenge from personal experience. I also know because I work with so many military families moving to Charleston hoping to buy a home.

Many of my clients arriving in Charleston recognize that purchasing a home in Charleston is a great opportunity. Are you military member contemplating a move to the Charleston area soon? If so, seriously consider buying a home - your timing couldn't be better. The Charleston home market has stabilized. Prices will soon begin rising again.

Yes, a permanent change of station move can be an exciting and stressful time. But, the good news is if you are moving to the Charleston area, you are moving to a place that is welcoming of military personnel. You are also moving to a location that has so much to offer that it is difficult to even describe. Charleston hosts many military families who live here for a few years; and, is also a place where many, who have lived here while in the military, decide to return. Military people enjoy the Charleston area!

I frequently receive communications from individuals looking for information about the Charleston area in preparation for a PCS move. Some of the questions they ask suggest to me that many underestimate how pro-military the area is. If you've been in the military for a while, then you know there are communities that are more accepting and supportive of military families than others. Charleston appreciates its military personnel.

The people of Charleston are extremely patriotic. This is not a new state of mind for Charleston, but is woven into the fabric of the area psyche. In fact, a large proportion of people who live in Charleston have direct ties with the military themselves. The military facilities and their supporting civilian industries have forged very strong interconnections throughout the area over a period of decades.

The region's patriotism and interconnectedness with the military are just two of the reasons that military members look forward to living in Charleston. The pro-military atmosphere and the availability of base excellent facilities are also important factors in drawing many retirees back to the area. Yes, Charleston is not only a great place to serve, it is also an outstanding venue for retirement!

Charleston is a military community in so many respects. Whether we are discussing economic contributions of the Charleston military community, the influence of Charleston active-duty, reserve or retired personnel on the political and social shaping of the Greater Charleston area, or the strong pride that is obvious for the contributions made by its residents, the military is a fundamental part of the Tri-County area.

Charleston is even a home to one of the nation's most important military colleges: The Citadel. Often referred to as the West Point of the South, the Citadel produces a steady stream of exceptional leaders for each of today's military branches. Many Citadel graduates are serving today as military officers in Iraq, Afghanistan, Korea, and on bases around the globe.

You might think of Charleston as a quaint Southern town with rich culture, great beaches, amazing restaurants and a fascinating history. It is all of those things, of course. But Charleston is also a historically significant military hub - and has been a military center of activity during all of its history.

When Charles Towne was originally established in the 1600s, it was defended by a small yet effective contingent that provided the cover necessary for developing a colonial foothold in the area. Remnants of this military fortification can be seen at the current Charles Towne Landing State Park in West Ashley.

During the Revolutionary War, the first major American defeat of the British Navy took place at Fort Moultrie (then called Fort Palmetto) located on Sullivan's island. You may know that South Carolina is nicknamed, "The Palmetto State" as a result of that revolutionary war victory by American Patriots in Charleston.

Charleston participated significantly in the support of all of the wars during the 20th century. One of the largest naval bases ever built was the Charleston Naval Base. The Charleston Naval Base, at one point was only exceeded in size and scope of operations by Norfolk on the East Coast, San Diego on the West Coast and Subic Bay in the Philippines, was closed during the early 90s by the Clinton administration as part of a move to reduce the size of the military. The Charleston community mounted a powerful defense, supported by millions of dollars of local contributions, in support of keeping the base in operation but were unable to convince the Base Realignment Commission and the White House.

The closure of the Charleston Naval Base had a dramatic impact on the Charleston economy. The Tri-County Area moved quickly to develop policies to encourage new business and industry development in Charleston to replace the loss of jobs from the closure of the massive Charleston Naval facility. In retrospect, economists have concluded that the closure of the Charleston Naval Base, resulting in significant cooperation among local governments in developing incentive programs for new businesses, launched Charleston into a new era of exceptional growth and opportunity.

Today, Charleston is seen as a premier location for new business development and is a top choice for major entities such as Boeing and Google. The Charleston economy is diverse, strong and expanding.

Obviously, the closure of the Charleston Naval Base did not remove the military from Charleston. The military continues to play an extremely important role in our area. In fact, some portions of the military are now growing in the Charleston - Charleston will be a center for military activity well into the future.

Each branch the military has some representation in the area with the major players being the Navy and the Air Force. The numerous C-17 aircraft flying over Charleston on any given day are a clear reminder of how much influence the Air Force has in the Charleston area. Some of the less obvious, but very substantial contributors include the commands located on the Charleston Naval Weapons Station, including the important Navy Nuclear Power Training Command, and the United States Coast Guard seen frequently patrolling the waters around Charleston. The single largest military support facility in the area, manned principally by over 1000 civilian engineers, is SPAWAR.

Every military move is a challenge. Every PCS move can be stressful even when planned carefully. But if you are moving to Charleston, consider yourself fortunate! Whether you are in the Air Force or the Navy or any other component of the military and are moving to the Charleston area, alone or with your family, you will soon discover that Charleston is a place that is easy to call, "home"!

Welcome to Charleston!

Chris DeLoach SFR, ABR, BIC - Realtor

843-654-4578 / chris@houseplanrealty.com

Posted Wednesday, January 27, 2010 11:15 AM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Real Estate, For Sale, Community Information, Charleston new homes, Goose Creek, Hanahan, Moncks Corner, Dorchester County, Dorchester Schools, charleston real estate, charleston mls, Charleston market conditions, charleston home sales, time to buy a home, charleston market, charleston homes for sale, VA, charleston real estate rebate site, MLS, chris deloach, charleston, buyer advocates, transfer to Charleston, improving home market in Charleston, boeing jobs in Charleston, boeing relocation, homes for sale in Charleston, boeing in Charleston, time to buy in Charleston, moving to Charleston, charleston housing market, PCS to Charleston, military discounts, summerville housing, Base housing in Charleston, house hunting in Charleston, military in Charleston, goose creek housing, military relocation specialist, military realtor, Charleston military community, Charleston Air Force Base, charleston housing, Navy in Charleston, CAFB PCS

Charleston'$ Green

Find a new home in Charleston

Charleston, a city of firsts with an extensive resume of technological innovation, is now on the vanguard in the quest for clean energy.

The future of Charleston's participation in the development of green technology looks very bright. A new project has "flipped the switch" to make this future even brighter - 15 mega watts brighter to be specific. North Charleston will now be a (the?) national and world leader in wind turbine technology!

North Charleston was just awarded $98 million to build an extensive laboratory for offshore wind turbines (funded in part by federal dollars but also supported by state funds, private individuals, and corporations). There are many reasons for selecting Charleston for this project including its port, rail system, and able workforce.

This announcement is really, really big news. While we have been closely focused on the incredibly positive and vital news of Boeing's expansion in Charleston, the magnitude of this highly important development has been almost "under the radar". Charleston's exuberance for and heavy media coverage of the Boeing decision, arguably the most important economic decision in Charleston's history, has overshadowed this great news.

The potential economic impact of wind turbine technology research and development in Charleston could, over the long run, eclipse even the benefits of the Boeing expansion. The Department of Energy estimates that, over the next 20 years, this project and the resulting growth of industry could boost the South Carolina economy by adding up to 20,000 new jobs! Of course much of this will depend on the future demand for green energy. The consensus is that the demand for green energy will skyrocket.

Just this week, rumor has it that General Electric has expressed interest in a possible partnership with this wind turbine project. Charleston leaders hope the wind turbine project will be a magnet that will create a new cluster of wind turbine related manufacturing facilities. Now that GE has expressed interest in the project, optimism is soaring.

Chris DeLoach

843-654-4578

Find a new home in Charleston

Posted Wednesday, December 09, 2009 12:20 PM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Charleston market conditions, charleston sale, charleston home sales, charleston market, charleston homes for sale, transfer to Charleston, improving home market in Charleston, boeing jobs in Charleston, boeing relocation, boeing in Charleston, boeing move, moving to Charleston, wind turbines in Charleston, tech jobs in Charleston

It has happened once again - more good news for Charleston, SC!

Charleston Home Search Link

Good news is becoming almost routine for the Charleston area. In recent weeks, we have been showered with an abundance of positive news about the Charleston area. But more than that, the news is so positive that it points to more than just getting back to normal. Without wanting to sound too much like a Pollyanna, it is exciting to know Charleston is on the leading edge of a rebounding economy.

Recent announcements, such as the announcement by Boeing of its expansion in the Charleston area, and the announcement of Clemson's wind turbine lab in North Charleston (perhaps the most important wind project in America), come right on the heels of good news about housing. The national spotlight is starting to shine brightly on our great city.

Have you heard what they have been saying lately about Charleston?

"One of America's most livable cities" -- US Conference of Mayors, 2009

"#2 best city in the United States to visit" -- Condé Nast, 2009

"Top 10 best cities for technology jobs" -- Forbes, 2009

"One of the top 25 strongest housing markets" -- Forbes 2009

"Among the top 10 smartest cities in the world" -- Forbes 2009

"Charleston is poised to emerge as a major aerospace center" -- Forbes 2009

"One of the top 10 places in the world see" -- Lonely Planet, travel magazine, 2009

For a longer list of recent accolades, please visit: my site.

If you're considering purchasing a home in the Charleston area, it's likely that you will see no better time than right now. Interest rates are low. Housing inventories are excellent (but falling). The housing market is on the rebound. It's a buyer's market (for a while longer). Growth prospects for the area and for jobs are excellent and getting better. There is a good reason to believe that, for home prices and for demand for real estate, all signs are pointing up.

Of course, I am a Realtor and I have a vested interest in seeing Charleston grow. So rather than just taking my word for it, ask people you meet in Charleston about what they think about the future of this amazing city. Talk to local area teachers about why Charleston has some of the best schools in the state and in the nation. Talk to small business owners about why Charleston is consistently ranked as one of the top best environments for small business. Ask any resident about Charleston's unbelievably rich cultural opportunities and fantastic recreational venues. Or, if you can't come to Charleston in person, research the long list of accolades attributed to the area. I think you will agree that Charleston is, "a national marvel" (Mayor Joseph Riley).

Chris DeLoach

843-654-4578

Charleston Home Search Link

Posted Wednesday, December 09, 2009 11:12 AM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: charleston real estate, charleston mls, Charleston market conditions, charleston home sales, charleston market, charleston homes for sale, chris deloach, charleston, improving home market in Charleston, boeing is good for Charleston real estate, boeing jobs in Charleston, boeing welcome, boeing relocation, homes for sale in Charleston, boeing in Charleston, boeing move, charleston jobs, market conditions, moving to Charleston, wind turbines in Charleston, charleston housing market, Charleston reviews

Lighting the fires under the recovering home market

Good news from Congress - the $8000 tax credit for new home purchases has been extended to May 1st of 2010 (pending presidential authorization).

Home buyers under contract to purchase by April 30 will be allowed an additional 60 days to complete their transactions. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.

Congress has listened to the voices of the real estate industry and of those of thousands of potential home buyers. What is even more significant is that Congress has listened to the voices of economists and experts in the business of the economic recovery . By extending this first time home buyers tax credit, Congress has made a wise move to provide needed support to the recovering real estate market.

In addition to the extension of the $8000 tax credit for new home purchases, a $6500 tax credit for repeat buyers who have lived in their previous homes for least five consecutive years, has been included. This new step offers a strong incentive for move-up home buyers, who have been considering purchasing a new home, to take action soon.

Another important change to these benefits is that income limits for the program have been raised: individuals can earn up to you $125,000 a year and still qualify! For joint filers, limits have been raised up to $245,000. These combined changes not only extend the time that these benefits are available, but they also greatly increase the pool of potential buyers who may benefit.

While we have seen significant improvements in the overall housing market over the past eight months, real estate experts believe action to provide continued support is necessary to ensure a reasonable rate of recovery. Critics contend that providing support to the housing market is unnecessary and provides artificial pricing supports which interfere with natural market equilibrium. Congress, and most in the real estate industry, have a different view. This expansion and extension clearly expresses recognition by Congress of the importance of the health of the housing industry to the economic health of the entire nation and to the vitality and speed of international economic recovery.

Where housing goes, so goes everything else. Yes - Congress has managed to do something right!

Chris DeLoach, ABR, BIC
Chris@houseplanrealty.com
www.chrisdeloach.com
843-654-4578

Homes for sale in Charleston

Posted Friday, November 06, 2009 10:23 AM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Real Estate, Technology, Selling your home, Charleston new homes, new construction, selling in Charleston, New Communities, charleston real estate, charleston mls, charleston market, transfer to Charleston, homes for sale in Charleston, time to buy in Charleston, extending the new home buyers tax credit, market conditions

The future for real estate is bright in Charleston

Find a new home in Charleston

The outlook for the real estate market in Charleston South Carolina is excellent. Reasons to be optimistic about the future of real estate in the greater Charleston area abundant. Here are a few.

The general consensus among Realtors of the area is that we have passed the bottom of the local market and we are already enjoying a gradual upswing. We have seen consistent positive indications of improvement including that sales in September exceeded sales of last September by a full 7%.

Home builders in Charleston have done a good job monitoring demand this year and have adjusted accordingly so new homes inventories are not excessive yet the quality and availability of inventories for buyers seeking new construction is sufficient. The total number of builders in the Charleston area has decreased - especially among custom builders. While there has been some reduction in current capacity, ramp up time is short as most of the larger builders are still in place, many of whom have excellent land positions.

Charleston is pro business - large and small. Economic development and diversification continues at breakneck speed for the Charleston area. We have had numerous announcements in the last few years about new companies coming to Charleston and many companies that are already in the Charleston area are making plans for expansion. Certainly not least among these many companies have been Google and Boeing. Small businesses do well here also . Charleston is one of the top small business growth regions in America (#2 Top Cities for Small Business (Entrepreneur and D&B)). The jobs outlook for the Charleston area in coming years is solidly in the green. This is a huge positive for home sales and home values.

On a national level, continued efforts to strengthen the real estate market, including the likely extension of the first time homebuyer credit and the inclusion of the $6500 homebuyer tax credit for existing homeowners, will continue to push the tide higher for the entire national home market. This is a especially important for a market like Charleston because we depend so much on area growth from newcomers moving to the area. The "potential Charlestonians" will now be more likely to be able to sell their homes in other areas and to move on to Charleston to purchase their next homes.

Charleston has very friendly people who encourage others to move to the area. Charleston has been recognized for dozens of years as being one of the most friendly areas in the nation and has been voted many times to be America's most polite city. The attitude of people living here now is important in attracting new arrivals Charleston. It is incredible how many decide to move to the area for no other reason than the attitude of the people who already live here.

Charleston has an excellent reputation for education as it consistently works to improve and to expand educational opportunities, both public and private. One of the key factors that corporations consider when looking at an area for potential expansion or relocation is the quality and availability of educational opportunities. This is Important not only for the morale of their own employees but it is also important when it comes to considering the educational level of new hires. Charleston has a medical school, law school, numerous colleges, and one of the best technical education facilities in the nation, Trident Technical College. In addition, among the public schools you will find examples of superb facilities such as The Academic Magnet High School, rated seventh among all high schools in the country, magnet math and science schools, and magnet schools for the performing arts.

Charleston receives consistent accolades referring to a broad range of attributes. The non-stop positive press about Charleston keeps the area "top of mind" for thousands of people considering a move for retirement, great weather, educational opportunities, cultural opportunities, business opportunities, and so much more. Even with the economy struggling over the past two years, Charleston has continued to grow. Anticipated long-range growth for the area appears excellent.

Proactive infrastructure preparation in anticipation of growth gives Charleston a leg up over many other areas. The Tri County Area governments (Charleston, Dorchester and Berkeley counties) have worked diligently for the past 20 years to create a positive atmosphere for growth and have campaigned actively to develop relationships with potential employers considering Charleston as their next expansion move. Infrastructure preparation has included detailed long range planning for schools, roads, neighborhood developments, business parks and shopping areas as well as great attention given to developing recreational opportunities and maintaining the area's famous aesthetic qualities.

Home affordability in the Charleston area makes it easy for first time homebuyers to buy and for move up home buyers to upgrade. Barriers to homeownership in the Charleston area are low. Land prices are reasonable and land for development, plentiful.

Land availability is outstanding for new production facilities and related job growth opportunities. The areas surrounding the developed portions of Charleston are wide open for commercial and industrial development. Unlike many cities that are the size of Charleston, business growth is not constrained by land availability.

Yes, there are new reasons to consider Charleston among the best places to live in the country but many of the reasons are no different than they have been for hundreds of years. Charleston is simply wonderful place to live, to work, and to play. The future for real estate in Charleston is bright.

Chris DeLoach, ABR, BIC

See: www.chrisdeloach.com

Chris@houseplanrealty.com

843-654-4578

Posted Thursday, November 05, 2009 9:56 AM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: For Sale, Buyer Information, Charleston new homes, new construction, Goose Creek, Hanahan, Summerville, New Communities, Dorchester Schools, bank property, charleston real estate, charleston mls, Charleston market conditions, charleston sale, charleston home sales, charleston market, charleston homes for sale, new construction in charleston, chris deloach, builders, charleston, improving home market in Charleston, boeing jobs in Charleston, boeing relocation, homes for sale in Charleston, boeing in Charleston, time to buy in Charleston, builders in charleston, charleston jobs

Boeing and the Charleston real estate market

Find a new home in Charleston

--------------------------------------------

Welcome, Boeing!!

Did you hear? Boeing is expanding in Charleston in a move that will change Charleston forever. Boeing just announced this week that Charleston was selected for its new final assembly location for the 787 Dreamliner.

This is much more than the quiet entry of a new manufacturing business into the area. Rather, Boeing's decision heralds the beginning of an unprecedented change in the economic basis of the entire region. It will certainly change real estate in Charleston, too.

The elevating effect of Boeing's decision will be felt across the whole state of South Carolina and will be felt the greatest in the Charleston area. The benefits will be broad based and revolutionary - holding the potential to redefine the economics of the Charleston area. Considering the extraordinary diversity and strength of the Charleston economy already, this is a sweeping statement.

Direct employment opportunities will surge - as will indirect ones as well. Consider the sorts of industries that are necessary to support a large aircraft manufacturing facility and you will begin to understand that the indirect jobs produced by this decision will even outshine the large number of jobs to be created directly by Boeing!

Some estimates suggest that there will be at least five additional support jobs created for each job created at Boeing. And, these numbers don't even speak to the tremendous impact on the local economy that these workers will have as they purchase homes and cars and everything under the sun.

The entire area, from Summerville to Charleston to Mount Pleasant to Goose Creek and beyond - will see a dramatic positive impact for real estate. This is a decision that is very, very good news for every home owner, every home buyer, and every home seller in the Greater Charleston Area.

In the past two days I have had the opportunity to poll several of my real estate colleagues as to their opinions on the impact of the Boeing decision to expand its operations in Charleston. Every response, without exception, has been on the extreme end of the spectrum - somewhere between incredible to fantastic to beyond belief. Boeing's decision may well be the most important economic news for the Charleston housing market ... ever. Yes, it really is that important - a true game changer for real estate.

Home prices, which have already started to stabilize, even increase, will be better positioned to improve as demand for housing grows faster than previously expected. Existing inventories will continue to be drawn down but now at a quicker rate. Home buyers and home sellers in the Charleston South Carolina area can anticipate a normal market sooner rather than later, where home buyers and home sellers are in better balance. Developing areas with new home construction, which have been operating in a near holding pattern for over a year, can now begin to move forward more aggressively with development as confidence in the growth of the Charleston area has been fully restored. Home builders no longer need to fear further contraction. Plus, hesitant home buyers have one more significant reason to get off of the fence.

Charleston has always been an area attractive to businesses of all sizes and is recognized as one of the top cities in the nation for small business owners. Boeing will also discover that Charleston is an amazing place to have a business - large or small. The people of the Charleston area are known for their work ethic, dedication, and mission mindedness. The people of Charleston have earned a well deserved reputation for being humble, gracious and polite. These are hard working people with traditional values who take little for granted and deeply appreciate opportunities.

Current Boeing people planning a move to Charleston have a lot to look forward to: unparallel scenic beauty, unmatched recreational opportunities, world class arts and cultural venues, fantastic restaurants, great educational opportunities, and so much more all in the most polite city in America.

Governor Sanford called the Boeing move "the largest announcement in South Carolina history... not only enormously good news for our state's economy, but also a telling dividend from our state's continued efforts to better our business climate. For us, that means lowering taxes, easing regulatory burdens in our state's tort and workers' compensation systems, and keeping South Carolina a right-to-work state."

The Charleston real estate market is well into recovery. Home buyers and home sellers are beginning to reap the benefits of an improving housing market. Even so, Boeing's decision bolsters even the most optimistic hopes of the local real estate community for future prosperity. Charleston Realtors, home buyers and home sellers, celebrate!

The positive, transforming consequences for Charleston of this major decision by Boeing can't be overstated.

Boeing - thank you and welcome to Charleston!!

Chris DeLoach, ABR, BIC

House Plan Realty, Charleston

843-654-4578

Chris DeLoach, ABR, BIC
House Plan Realty, LLC
843-654-4578
www.chrisdeloach.com

boeing in Charleston

Posted Friday, October 30, 2009 11:44 AM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Charleston new homes, new construction, selling in Charleston, Mt Pleasant, New Communities, charleston real estate, charleston mls, Charleston market conditions, charleston home sales, time to buy a home, charleston market, charleston homes for sale, charleston real estate rebate site, transfer to Charleston, improving home market in Charleston, boeing is good for Charleston real estate, boeing jobs in Charleston, boeing welcome, boeing relocation, homes for sale in Charleston, boeing in Charleston, boeing move

Charleston home market rebound

Chris DeLoach, ABR, BIC

Charleston sunset by Chris DeLoach

In Charleston, the signs of fall are all around us. So are the signs of a Charleston real estate market rebound.

The Charleston market is showing clear signs that a modest price recovery is underway. Homes are staying on the market for less time. Homes that are priced "below market" often are receiving multiple offers. Investors are returning and with them we are starting to see some cash deals once again.

While we are certainly a long way from where we were two years ago when a home could sell in a matter of hours, there is no longer any debate that things are improving in the Charleston market. The Charleston market survived reasonably well in comparison to most other markets during the downturn. Our price declines were modest. Charleston has always been, and continues to be, a very popular area. Those factors, combined with a diversified economy, support market stability and the ability to rebound quickly.

In Aug, our area pending sales increased 23.8% over August 2008. That wast he largest increase in the Charleston market since 2005. Home prices jumped 3% over July. Inventory of listed homes on the MLS dropped as well.

In my own neighborhood, a year ago the typical home remained on the market for six months. In the past four months, I can recall three listings that received contracts in under a month (two in less than a week) - in a neighborhood that averages about five active listings at any given time. We are seeing very definite improvements all around the area.

The single most significant factor that has worked to hold prices down in our area this year has been the number of bank properties and short sales. The inventories of both bank properties and of short sales are being worked off rapidly. When we have passed the point where these properties impact pricing, I expect to see a relatively quick, but short lived modest surge in home prices. The jump will be followed by a leveling into a gradual increase in prices - maybe to 3% to 5% increase per year - for the next couple of years. After that, I would expect appreciation to be slightly higher.

Attention Charleston home buyers: interest rates will rise again. Although there is not a direct correlation, one can look to the perspective of the central banks to get an idea as to how soon we should start to see some changes. Australia's Central Bank raised rates to 3.25 last week. I suspect Bernanke will need to start putting the brakes on our own economy by tightening the money supply by springtime if not sooner. In my opinion, interest rates will be at least 1 point higher by this time next year.

Yes, we are still in a buyers' market. Yet, there is little doubt that the amazing deals we have seen this year and last year will fade soon. Today, serious bargains are already dwindling in number and now face increasing buyer competition. We are slightly past the market bottom. For the next several months, maybe until mid next year, there will still be some very nice bargains in the Charleston home market.

If you are a buyer, this may well be as good as it gets! For you sellers, good news. Things are slowly getting better - much better.

Charleston Real Estate Site

Posted Monday, October 12, 2009 9:16 PM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Buyer Information, Selling your home, Charleston new homes, selling in Charleston, charleston real estate, charleston mls, Charleston market conditions, charleston home sales, charleston market, charleston homes for sale, using a buyers agent, short sales, charleston, summerville short sales, charleston short sales

Buying a short sale - a great deal but can you handle it?

There is nothing "short" about a "short sale". Among the real estate misnomers, this is a classic one. Short sales take a long time. They are hard for the seller. They frustrate buyers. They are among the most complex and challenging transactions for agents.

If you are looking for a home and have not heard about short sales yet, you will. Short sales have been around for quite some time but have not been well publicized until recently. Short sales can be interesting and dynamic; yet, they are usually frustrating for buyers. For a buyer who has the patience and is in a position to wait, a short sale can be a very good financial opportunity.

What is a short sale?

A short sale is simply a situation where a home owner is in a position where they need to sell their home but their home is currently worth less than what they owe on their mortgage or mortgages. In addition, the sellers have demonstrated some degree of financial hardship to their lender in order to secure their lenders blessing in allowing the short sale. The sellers lender has agreed to work with the seller by sharing some or all of the loss resulting from having to sell the home for less than what is currently owed.

It sounds very simple yet it can be complex and convoluted. Most short sale situations take much longer to complete than ordinary sales. Buyers who are considering purchasing short sale properties need to be prepared to be very patient. They also need to be ready for extended periods of time where they have no information about what is going on with the sale.

Banks are willing to do short sales for one reason - it saves them money. A short sale is usually more financially prudent for a mortgage holder than a foreclosure. Banks use loss mitigation departments to manage these transactions. These loss mitigation people are well known for their lack of flexibility and for their lack of compassion. They are also known for their lack of communication to all parties involved in these transactions.

For the seller who has realized the need to sell short, the first step is to speak with the lender and to submit a package explaining the reasons for not being able to meet their mortgage payment obligations. Their lender will review this information and make a determination as to whether or not the lender will be willing to allow the short sale. If the lender does agree, the seller is free to market the property as a short sale.

Any sales contract will be subject to a third party (bank) approval. That is, once the buyer and the seller have come to a meeting of minds by completing a contract for sale, the mortgage holder has the final say so on the deal. Why? Because the mortgage holder will share in the loss. If there is more than one mortgage holder involved, such is the case when there is a second mortgage, all mortgage holders will need to approve the terms of the short sale.

It's important to note that the price listed on the MLS as an asking price is usually just a best estimate by the seller and the seller's agent as to the value that the current lender will be willing to approve. This means that an offer for full asking price based on the MLS will not necessarily be accepted by the current lender.

Most buyers are under the impression that the MLS listing price for a short sale is always significantly higher than the bottom line of what the current lender will accept. Unfortunately this is simply not the case. Although there are cases where the buyer can get a dramatic reduction, such a dramatic drop in price should not be considered a foregone conclusion simply because it's a short sale. This is because the list price may already be in line with the minimum that the mortgage company will accept.

As we begin to climb out of the housing crisis, the difference between the ask price and the sales price will narrow. This has occurred and continues to evolve as sellers and buyers develop more realistic pricing expectations. This pricing adjustment effects the pricing of short sales as well. Today, short sales are listed more closely to the final price that banks are willing to accept. There are fewer opportunities now for buyers to get extremely low prices on purchases of short sales. Of course there are very good deals to be had but the number of those amazing deals is dwindling.

With that said, be skeptical when you see a home that is listed on the MLS as a short sale that is priced so exceptionally below comparable properties as to be shocking. The pricing may have been chosen for strategic reasons - to draw as many offers as possible. Keep in mind that, since there is third party approval required, the price as listed on the MLS may have limited validity. In reality, any price could be posted (ethics considerations aside).

Buyers who are already concerned about the extended time that short sales can take need to be advised that sellers/agents using a strategy of posting exceptionally low pricing may further slow the sales process and dramatically boost offer volume. High volume decreases the probability that your offer will be the winning bid. It also motivates the seller to delay responding to any offer as the many bids roll on in.

Once an offer has been accepted by the seller, the current mortgage holder usually employs an appraiser to generate a current appraisal on the property. That appraisal is submitted to a negotiator for the bank. At this point in the process the current mortgage holding bank determines whether or not to accept the offer, reject the offer, or provide a counteroffer.

With the large number of short sales on the market today, lending institutions are often overwhelmed with requests to allow short sales - and to process offers. These lenders have difficulty acting quickly because of the large backlog of short sale properties. It is not unusual for it to take more than 60 days to receive an answer from a bank on an offer. It is not unusual for it to take up to six months to close a short sale deal. It is commonplace for buyers to feel like their offer has disappeared into a black hole because they have to wait so long to get information.

If you decide to go the route of purchasing a short sale, you may be able to get a property at an excellent value.

Understand that if you have a real estate agent working for you, that agent will be kept in the dark as much as you will be. Most agents who work with buyers on securing these properties do their very best to keep clients informed. If you are purchasing a short sale, be kind to your real estate agent.

Short sales are some of the most difficult and time consuming transactions that real estate agents engage in. A good buyer's agent will do all that is possible to keep you informed; even so, if you are buying a short sale property, the information available to your agent will be extremely limited during the process. Your patience will help your agent be successful on your behalf and help you remain best of friends!

Sincerely,

Chris DeLoach, ABR, BIC

843-654-4578

Posted Friday, October 02, 2009 3:12 PM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: Buyer Information, Charleston new homes, selling in Charleston, Goose Creek, Hanahan, bank property, charleston real estate, charleston mls, Charleston market conditions, charleston home sales, charleston market, charleston homes for sale, mortgages, MLS, chris deloach, short sales, charleston, buyer advocates, goose creek short sales, charleston short sales

The lesser of two - the short sale

Charleston South Carolina Real Estate

A short sale is a sale that occurs where the closing price is less than the balance owed on the seller's mortgage and the seller will not be making up the difference to satisfy the mortgage. A short sale can result in a very good deal for a buyer.

In the last year or two, short sales have become common place. The massive, nationwide drop in equity among homeowners and job loss due to economic contraction are by far the biggest drivers for the jump in short sale activity.

In order for a short sale to happen, the mortgage company must agree in advance that they will allow short sale to occur. In addition, the mortgage company for the seller must approve of the terms of the sale once an agreement has been negotiated. Why? The mortgage company shares in the losses.

Short sales are born when homeowners find themselves unable to make their monthly mortgage payments. Just because you find yourself in this position does not mean you will automatically be able to do a short sale on your home.

In order for you to be able to participate in selling your home via a short sale, you will need to convince your lender that doing so is in your lender's best interests. They have to believe that foreclosure is inevitable - and even eminent - if they do not allow you to do a short sale. Note: sellers never "make money" on a short sale.

Before the bank will tell you "yes", you will need to prove to them significant hardship caused by such circumstances as divorce, job loss, illness, or death of a breadwinner. Your situation must be pretty serious before a short sale will be considered by most banks.

If you can find anyway to pay your mortgage, your mortgage company will not be very interested in helping you with a short sale. Many homeowners simply owe more than what their home is worth. Many of these upside-down homeowners default on payments because they cannot stand to continue paying for something that is worth less than what they owe. Making a conscious decision not to make your mortgage payments when you can make them is not the sort of situation that banks look at favorably when considering allowing short sales.

Banks generally manage short sales through their loss mitigation department. Banks are willing to work with short sales only as a last resort. If you are considering offering your home for sale this way, keep in mind that you are asking a lending institution to help you in a way that they have not agreed to do so contractually. They are, in effect, doing you a favor. But, yes, they are also acting in their own best interests because selling a home through a short sale is usually far more cost effective to the bank than foreclosing on that home.

Foreclosures are expensive to banks. Banks do not want to manage real estate and they are not very good at either. While a home waits to go through the foreclosure process and the foreclosure sale, lenders are responsible for insurance premiums, taxes, and necessary repairs and upkeep. This can be very expensive since foreclosures can sit on the market for extended periods of time.

In addition to the direct cost, foreclosures inevitably drawn down goodwill that that banks may have built up within a given community. Whether fair or not, when a bank forecloses on a property, the public does not look upon that bank as a friendly member of the community. If a foreclosure can be avoided, it is simply better business to do so.

If you need help with a short sale, give me a call.

Sincerely,

Chris DeLoach, ABR, BIC

843-654-4578

Posted Friday, October 02, 2009 3:01 PM by Chris DeLoach, ABR, SFR, BIC | 0 Comments

Filed under: For Sale, Buyer Information, Charleston new homes, selling in Charleston, bank property, lenders, charleston real estate, charleston mls, Charleston market conditions, charleston sale, charleston home sales, charleston homes for sale, chris deloach, using a buyers agent, short sales, charleston, goose creek short sales, summerville short sales, charleston short sales

Working for or against you as a buyer?

Charleston Home Search

It's time to look for a home and, like most folks, you realize that an agent can save you time, money and a lot of headaches. Did you know that some real estate agents can actually be required to work against your best interests as a buyer? Read on!

Most consumers believe there are virtually no differences among real estate agents. After all, nearly 90% of new agents are out of business within just 5 years so most of the real estate agents in the field today are newcomers. Half the new agents are gone in about year 1after they begin.

So, it is true that many agents are very similar in what they can offer you. While "generic" may be an oversimplification - certainly not a very accurate one - it is still how most clients see the pool of agents out there.

Of course, there are those long-term professionals in the business - individuals who have the skills necessary to go the distance - serious pros with extensive experience. If you have worked with one of these top 10% agents before, you probably know it - and you probably feel good about the relationship and the service.

Aside from experience and skill level, there are other differences. Agents can fight for your interests, fight for the seller's interests, or just be an impartial helper for both.

Agents perform functions depending upon specifically defined guidelines. South Carolina allows agents to be:

(1) buyer representatives (2) seller representatives (3) duel agents or (4) designated agents.

As a buyer, you can work with ANY of these agent types - or none at all. Who should you choose? If you choose a seller's agent, a designated agent or a duel agent, you have selected an agent that CAN NOT advocate for you (if doing so is against the seller's interests).

That's right. You can work with any of these but only buyers agents are sole representatives of buyers during a given transaction. The others can provide what amounts to slightly more than administrative help but that's about it. Seller's agents (listing agents under contract to work for the seller) are actually duty bound to work against your interests as a buyer if those interests conflict with the interests of the seller! Surprised? So the next time you call a listing agent to meet you at one of their listings for a showing, remember who they represent.

Be a smart consumer. Choose a buyer's agent!

For more, go to: more about using an agent

Chris DeLoach, ABR, BIC

843-654-4578