Columbia SC Homes for Sale by David Patterson

I have been fortunate enough to launch my real estate career by helping several first time home buyers and Columbia SC relocation clients. Both to these types of clients usually ask....

What's the first step in buying a home or Who should home buyers call first for help in buying a home?

With today's post, I would like to address another common question.

What are the current mortgage interest rates?

If you ask any real estate or mortgage professional that is worth their weight in silver, they can give you an accurate estimate of today's 30-year Fixed Interest Rate. However, questioners should also ask about the fine print that is attached to those rates.

For example, here's a section of this morning mortgage flyer...

It's very common to hear someone answer the INTEREST RATE question by saying..........

Today's interest rate on a 30-Year Fixed Mortgage is 6%.

However, it's important to get all the information that's related to an interest rate quote.

For example, this is what was at the bottom the aforementioned interest rate flyer................

"These rates are assuming a 680 credit score, at least 5% down, and a loan amount of at least $100,000."

Translation..........If you don't have a 680 credit score and the ability to make about a $5200 downpayment, that 6% interest rate might not apply to you.

Plus, you haven't asked about ORIGINATION FEES and other costs for borrowing the money (aka APR).

Before you make a positive or negative judgment on any interest rate quote, GET ALL THE FACTS and that would include a Good Faith Estimate.

If you are buying a home for the long term, ANYTIME IS A GREAT TIME TO BUY a home! However, educated buyers make better decisions. Hire real estate and mortgage professionals that will educate you about the process. You'll be better for it!

Happy House Hunting!

On the cover of the September/October 2008 Issue of The Residential Specialist is Janet Lopez with Taylormade Properties, Inc. in the Tampa area. Congrats to Janet!

Within this issue, there is an article entitled "wonder y". Kathryn Rudziensky discusses how Certified Residential Specialists (CRS) are learning to service the needs of Generation Y buyers.

I was lucky enough to be interviewed for this article. Thanks to Kathryn, I used the opportunity to share my experiences and strategies for working with my Generation Y clients.

One piece of advice that was shared in the article is related to the importance of schedule flexibility.

At times, we have all had to work outside "the standard 9-6 business hours. Some Generation Y buyers don't have as much flexibility in their work schedules as older buyers. Making yourself available during their availability is crucial to building a successful relationship with these buyers."

In subsequent posts, I will share some other advice for working with Generation Y clients that did NOT appear in the article. Hopefully, some of my words will be helpful in improving your real estate business.

If you desire, I would be more than happy to send you a copy of the article.

Thanks again to the publishers of The Residential Specialist, Kathryn Rudziensky and my clients that have entrusted their real estate buying experience to me. Words cannot express my gratitude!

While working on a listing lead from my Sphere of Influence, Patterson Group Investment Representation Specialist Troy Robinson comes to me with a thought-provoking scenario and question.

TROY: David. I have a client that is planning to purchase a property for the purpose of meeting their investment goals through "rehab flipping". She plans on rehabbing the property to meet ABOVE MARKET CONDITION standards. If we come across a buyer for this home in the first 45 days after purchasing it, are there any restrictions with obtaining funding through a FHA loan?

DAVID: Let's call Leah Avery with Bank of America Mortgage and get the answer.

LEAH: I'm glad that you called. I was putting together a FHA Funding presentation for several real estate groups throughout Columbia SC. Here is some information that should be on the minds of all rehab investors and home buyers.....

For a home to be resold through FHA FINANCING, the previous purchase of that home must have happened at least 91 days ago. Hence, if you purchase a home on September 3 of this year, you cannot get FHA Financing for the home until approximately December 4.

Furthermore, resales that occur between 91 and 180 days after the last transaction (SOLD) date have a 100% stipulation. If the home is being sold for more than 100% of the last sales price, FHA will require additional documentation (i.e. a second appraisal) to validate value of the subject property.

Therefore, if you buy a home at $70,000 and try to sell it for $141,000, you probably will see underwriters requesting additional documentation.

DAVID: That's some good information! I need to share it with the world!

Attention Real Estate Investors! You have been placed on noticed! This post is not meant to discourage. I'm in the education business! Now You Know..........and Knowing is Half the Battle!

The events of this summer have moved me to write a series of articles about challenges with the sale of homes that are currently on the market. Over the last few months, topics on my blogs have included:

1. Having Trouble Selling Your Home?

2. Having Trouble Selling Your Home? - Part Two!

3. Why Aren't Buyers Coming to See Your Home?

Do you sense a theme to the topics that are most visited on my blog?

Unfortunately for the current home seller, Summer is quickly turning into Fall. Within days, most people will shift their focus from buying a home to buying a Thanksgiving Turkey or Christmas Presents.

Attention Home Sellers! I have some serious questions for you!

1. Do you NEED to sell your home in the next sixty (60) days? If YES, then here are some other questions that will go to the heart of your current situation.

2A - Do you NEED to sell your home for the maximum price? or do you NEED to sell your home?

2B - Do you NEED to sell your home for the maximum price under current market conditions or do you NEED to sell PERIOD?

These seem like simple questions that border on the word DUPLICATION.

For those of you that are having trouble selling your home, I assure you! They are NOT!

They are not the same question unless your actions, motivation and mindset about selling your home are on one accord and are conducive to meeting your current real estate NEEDS.

As a Realtor, Certified Residential Specialist and, most importantly, the first-born of Hazel Patterson, I am obligated to tell you the truth! Are you ready for the truth? Here goes!

Depending upon the Absorption Rate and popularity of your neighborhood, you might be disappointed by the maximum price that buyers are willing to pay for your home.

I know you might not want to hear that statement. However, if you were sick, you'd want the doctor to tell you ASAP! Well......In my mind, it's no different with my real estate clients. Therefore, paraphrasing The Shawshank Redemption...

It's time to GET TO SELLING or GET TO STAYING! The choice is yours.

If you are a For Sale By Owner (FSBO) in this country, take Linsey Planeta's advice............ HIRE A PRO!

If you haven't listed your home, TODAY IS THE DAY!

REGARDLESS THE LOCATION, I would be more than happy to help with the sale of your home.

However, I'm only in charge of the process. You (Home Seller) are in charge of the decisions!

DON'T DELAY! ACT TODAY!

According to my Keller Williams Team Leader, the number of Days on the Market (DOM) for metropolitan Columbia SC homes for sale is steadily increasing. Depending upon how you slice and dice the data, the average real estate listing is sitting on the market for approximately 95 to 105 days.

What are you and/or your real estate agent doing to reduce your DOM number?

Are you having trouble getting buyers to visit your home?

One reason could be how you arrived at your listing price.

Did you and/or your real estate agent calculate your Absorption Rate before pricing the home? What?.............. You are unfamiliar with the term Absorption Rate.

"Basically, absorption rate is the amount of time it will take to sell all of the homes on the market, based on current sales trends." -- Ryan Hukill with Paradigm Realty in Edmond, OK

Knowing the absorption rate and using it as a tool to properly price your home is critical to selling your home in significantly less time than the 95-105 average DOM timeline.

Here are Absorption Rates for some Columbia SC neighborhoods.........

The Highlands in Northeast Columbia SC currently has 10 Months of Inventory on the Market. What does that mean to Highlands homeowners? In laymen's terms, if you have a home on the market in The Highlands, it could take you TEN (10) MONTHS to sell!

Turtle Creek in Northeast Columbia SC - Your Absorption Rate is NINE (9) MONTHS!

Milford Park in Irmo SC - Good News! Your Absorption Rate is four (4) months.

Heatherstone in Irmo SC - Better News! Your Absorption Rate is three (3) months. If your home has been on the market longer than three months, it might be time to perform The 4 Ps Analysis on your home! (That's another article for another day!)

If you have questions about your Absorption Rate or conducting 4 Ps Analysis of your home to reduce your DOM number, call today to schedule an appointment with Patterson Group and the Keller Williams team.