Greg Worley

Mark your Calendars!!! May 14th, 2009 is RED Day!

Keller Williams Realty is preparing to celebrate RED day on Thursday May 14th, 2009 across North America. Each local office of Keller Williams will be connecting with their local community to lend a helping hand and remind us that we are here to help our neighbors.

Here in our Columbia, SC office, we will be teaming with Food from the Heart and the Harvest Hope food bank to hand out red bags to collect food to benefit hungry children and families in Lexington and Richland counties. Our teams will be stationed at 4 local grocery store chains to collect your food donations from 9am-6pm on Thursday. Please make a point to visit one of the locations below and make a food donation for our community.

Northeast Columbia: Kroger on Two Notch Rd & Sparkleberry Lane.

Forest Acres: Kroger on Forest Drive.

Downtown Columbia: Piggly Wiggly on Beltline

Irmo/St Andrews: Kroger on Lake Murray Blvd & St. Andrews Rd.

Thank you! Together we CAN make a difference.

Greg Worley
Broker/Agent
www.HomeInColumbia.com
www.YourBigWhy.net

I recently read an article, 5 Reasons buying a home in 2009 is a bad idea, whose author gave 5 reasons not to buy a home right now. It is this type of negative publicity that is making these difficult timeseven tougher on the economy. The same article projects the market to continue to slump for another 18-24 months. If everyone shared the author's negative view, I could see why it would take so long for the economy to recover. Those thoughts sound to me as if the author has her finger on the panic button. The real problem is that the public perception and consumer confidence has been severely diminished by the negative media that is being dished out.

Let's look at this from a different angle. What if I told you that the economy was in the toilet and instead of suggesting that we try to stimulate or revive it, I reccomend that we all hunker down and wait it out. Everyone should just stop spending money as much as possible or at least until merchants and service providers start giving everything away. We should all go back to the days when people raised livestock, grew their own vegetables and made their own clothes. How many jobs would that save? How many marriages?...How many lives? Well, I don't think it would do much to help the economy either.

With that said, allow me to offer my real world perspective and give you 5 reasons you should buy a home, right now.

1. Mortgage rates are near record lows. - Waiting to see if home prices will drop any further may increase the risk of mortgage rates creeping up higher. A rate increase of 1% can be the same as adding $10,000 to the purchase price of a new home. Considering median prices in most areas vary from $150,000 to $200,000, you would need to expect another 5-7.5% reduction or more in home prices to benefit should the rates go up a full percent between now and the time you decide to buy.
   
2. How low will they go? - Some markets are already much lower than they were a couple of years ago. Keep in mind that these are the same markets that saw huge increases before the housing bubble burst. In fact, home prices are back in line with where they should be if you take in to account a steady growth rate of appreciation. The housing bubble caused a spike in the normal growth rate and eventually led to the severe downturn we are experiencing now. But is it really a downturn or a righting of the ship, putting us back on the course we should have been on all along. Take a look at this graph and decide for yourself.Real Estate market Growth Chart.



3. Timing is Everything - The person who wrote the article suggests the best strategy is to wait until the market has bottomed out before making your move. Good advice except for the fact that, unless you're a pyschic, no one knows when the market has hit bottom until it starts rising up again. By then it's too late and you've missed it. The chart below illustrates market trends. The "safe zone" represents a favorable time to buy. The "lucky zone" is ideal, but if you notice the point that you realize these zones are after the market has shifted. I believe a few market places may be within or close to a "lucky zone." right now.



4. Choices, choices, choices - Given the decline in homes being bought and a steady increase of homes on the market, the choices available are mind-blowing. In a sellers market, there is usually not much to choose from, therefore they can ask for more money. In today's buyer's market you can have your pick. You will find plenty of homes in top condition with lots of extras in desirable locations and at very reasonable prices. What more could you ask for?
   
5. Help your fellow citizen - The government knows that the best way to stimulate the economy is to get people to spend money. This will create a domino effect that will allow retailers, manufacturers and others to create jobs, thus put more money into the economy. It's a cycle. The same with housing. There are many homeowners out there that are struggling financially and need to sell their current homes in order to free up their own cash flow, reduce debt or relocate to a new job. By buying one of these homes you would be, in part, stimulating the economy. How cool is that to take part in the American dream and help out at the same time?
   

Although it may sound like I am attacking the article that gave reasons not to buy, in all fairness, the same author wrote a similar article: 5 reasons buying a home now is a wise move.

It's a buyer's market. Why aren't you buying? What are you waiting for?

Regardless of your season of life, there are good honest REALTORS that would love to help you realize your dreams of owning a home. I am one of those REALTORS and I put the "real" back in real estate. I service many parts of South Carolina, however if you are not in my area please keep in mind that part of my job is putting people all across the United States and Canada in touch with a real estate agent that will provide honest, dependable service. Whether you or someone you know is thinking of buying or selling a home. Call me first.

Greg Worley
Broker, REALTOR
Keller Williams Realty
Columbia, SC
www.HomeInColumbia.com

Today Puxsutawney Phil, the Seer of Seers, Prognosticator of all Prognosticators, saw his shadow, thus predicting an extended Winter. Given his stature and fame, I wonder if good ol' Phil would mind giving us his forecast on the country's current economic condition.

While we may not yet be able to change the weather, we can unite and strongly influence the economy.

The news relayed by the national media outlets paint a grim and gloomy portrait. This information may speak truths about some markets, however it is not a fair representation of the status of all individual and local markets. As a result of the national media, consumer confidence is at an all-time low. We as a nation can take action to jump start an economic recovery one house at a time.

If you are a homeowner who is still deciding whether or not to sell, here are a few things to consider.

1. Let's say you want to upsize your home. Now is a great time to do so. Be open to the idea that you may take a loss on the sale of your current home, but by the same account (or discount) you will be receiving a better price on the nice new larger home. When you do the math you will find that your savings on the new home will be greater than the loss on your old one, which means an overall net savings for you.
2. If down-sizing is what you had in mind, whether to save money or because of financial difficulties, there may be a solution for you, as well. Banks are more willing, now more than ever, to work with you and help you absorb the financial loss and avoid foreclosure.
3. If you don't have to sell, move or you're not struggling to make your payments then don't sell. It's a buyer's market. You can afford to wait until it's a balanced or seller's market again. You may want to consider refinancing to take advantage of the low rates.

On the other hand, if you are looking to buy a home, now is the perfect time. It's called a buyer's market for a reason. I'll give you three.

1. Low Rates!!!
2. Low Prices!!!
3. Lots of Choices!!!

It's simple. Mortgage rates are at an historical low. Did you know that in terms of your payments a 1% reduction in rate is the equivalent of a $10,000 reduction in the home purchase price? Let me put it another way. The lower rates mean that you can buy more house for the money. With lower prices, it means you get double the bang for your buck. Not to mention you have your pick of homes with high inventory levels.

If you are a buyer waiting for the market to hit rock bottom, I suggest you get off the fence and buy now. There are only a lucky few who can claim to have bought when the market bottomed out and even they didn't realize it until after the fact. The truth is, as you patiently wait for the market to hit bottom you will not know it has until prices begin to go back up. At that point it's too late. You missed it. Bummer. Buying now will insure you of getting a good price, rate and selection. In turn, you will be helping out sellers who may be struggling to make ends meet, avoid foreclosure or take a new job through a relocation. This my friends will help families free up what was once disposable income that can be spent on other goods and services, which will lend to the local economy and begin to spread until the economy is once again headed in the right direction. It's a domino effect and buyer's hold the key.

Still not convinced that now is the time to buy. Well I don't know about all the markets out there. However, I do keep track of what is happening in my local market. (Columbia, SC) From 2007 to 2008 the number of home sales dropped 20.6% in our area. Home prices, during the same time only slid 1.7%. Meanwhile in another market area in SC home sales dropped 19.6% while home prices actually increased 2.4%. There are many reporst coming in from December and ealry January that activity is increasing. For some areas around the country the market may have already bottomed out.

So what are you waiting for?

This is my real world perspective. I'm putting the "Real" back in real estate.

Greg Worley
Broker, REALTOR
Keller Williams Realty
www.HomeInColumbia.com

On November 4th, voters in the Lexington-Richland School District Five will have the opportunity to approve or reject a bond referendum. South Carolina state law requires voter approval for the district to borrow more than eight percent of the assessed value of all property in the district. A bond referendum is an election that allows residents an opportunity to give that school district permission to borrow money to expand/renovate school buildings or build new ones.

You may ask, "what does this issue have to do with real estate?" The answer is simple; Great schools sustain great communities. Independent reports show that property values are linked to the success rate of local schools.

The Lex-Rich Five school district has consistantly been among the best in the state including top honors a few years ago as the "School District of the Year." The success of the district has definitely contributed to the growth and success of the community. However, the school district has not had the funds necessary to match the growth. The district's rating has since been downgraded from "excellent" to "good" and is in danger of slipping further. The schools have become overcrowded and are also in jeopardy of becoming technologically inferior to neighboring school districts as available funds must be redistributed to provide "band-aide" fixes to aging buildings and add unsightly sub-standard trailer classrooms. The average age of District Five facilities is 30 years and there are currently 149 trailers being used as classrooms and offices.

Those opposed to the referendum site taxes as the main objection and have published false information regarding the actual numbers in order to persuade the public. The fact is the tax increase that would result would be $14 annually per $100,000 in assessed property value.

For example:

• The average home in Richland County is valued at $163,161. The tax impact would be $22.70 per year on a home at this value.
• The average home in Lexington County is valued at $173,598. The tax impact on this home value would be $24.30 per year.

Over the past 10 years, the Lex-Rich Five district has fallen behind neighboring districts in passed referendum dollars.

Richland District One passed a $381 million referendum in 2002.

Richland District Two passed a $98.3 million bond in 2000 and another $175.5 million in 2004.

Lexington District One passed a $118 million bond in 2004.

In comparison to District Five's $243.6 million referendum two of these districts are also seeking approval of bond referendums on November 4th.

Richland District Two: $306 million referendum.

Lexington District One: $336 million referendum.

Should the Lexington-Ricland Five Bond Referendum fail to gain voters' approval again, the district will continue to fall further behind the neighboring districts and school planners would have to consider a plan that would have the schools open year round on a rotating basis to ease the overcrowding problem. Some have asked "what is the problem with portable classrooms?" I'd ask them how they would feel spending most of their day in a leaky tin box with poor acoustics, bad circulation and tempermental heating and air conditioning? If you outgrew your current home, would you build additions or upgrade to a new home or would you put your family members out in the back yard in a tin box? The poor facilities and lack of a stable teaching environment would cause good teachers to move to other districts.

If the bond is passed, the district could update schools and build new schools so that class sizes could return to a normal. This could also reduce traffic in certain areas. Overall, the District Five schools could regain an excellent rating, attract the best teachers and offer the best education possible to our youth. It is the best investment we can make for our community.

Great schools attract great teachers. Great teachers educate great citizens. Great citizens make great communities. Great communities sustain great property values.