In December of last year, I submitted an offer for a buyer on a 3 BR 2500 sqft home in Goose Creek, SC. The seller was transferred out of the area due to the military. The listing price was $208,000. We offered $200,000 and they countered at $206,000. The buyer wanted to hold their ground at $200,000. Due to the time of year (slower sales) and for the state of the market given the builder was building the same house for $17,000 less, I felt it was a great offer. The agent said the seller couldn't do it because they would be bringing $6000 to the table. I asked the agent to ask the seller to reconsider and view it as 6 more mortgage payments if the house didn't sell. They refused. She felt confident in her pricing. So my buyer walked away and said we'll just keep looking. While she and her husband were qualified for significantly more, they had already predetermined a price that they did not want to go over. We found another great house for my client just one neighborhood over that was 5 BR 2700 sqft and she got it for $200,000. It had a better lot that was wooded and it couldn't have been more perfect! It's now been almost 9 months and the other house is STILL on the market and the price hasn't changed.
No one likes to bring money to the table. I understand, but it's a buyer's market and the reality is that house prices have dropped, there are lots of choices, and a bigger better deal is probably just around the corner if seller doesn't want to play ball. When I consult with sellers that receive an offer that results in a negative net, especially my military clients that have to move or PCS, it's important to look at the big picture of the market. Sales are down by 40% from last year. While there has been a 2 percent increase last month, let's not forget that we are still negative 38%! It makes me cringe for my military clients to bring money to the table because I know their transition is a must and the money is often tight. The last 3 clients that had to bring money to the table were military transferees. One had to pull money out of an IRA, one borrowed money from parents and the other had to go to the bank to borrow money. The pain of being separated from a spouse or family member, the extra mortgage payments and other carrying costs is just worth being done with the house even if it hurts the pocketbook. Unfortunately as a Realtor, I do not create the market. I wish I could! My job is to help sellers respond to it by making good choices on pricing, staging recommendations and any other items that might need to be done to get the house sold to so that the sellers can get where they want to go on time. It's unfortunate to see houses still on the market when I know an offer has been submitted several months ago. I have been in that boat with a seller. There's an old saying in this business that the first offer is usually the best.
If you are in Charleston, SC or thinking of making a visit, you have to stop by the Windjammer, on the Isle of Palms. First, they have the best cheeseburgers and tater tots and that is a must; there are plenty of other great items on the menu too. Stop by any day of the week and hang out on the deck and enjoy the beachfront view from the picnic tables or catch one of the volleyball games from the lower deck. All year round, you can catch great live music in the evening with some big headliners like Sister Hazel, Hootie and the Blowfish, Big Head Todd and Cowboy Mouth and many other up and coming or local artists. This intimate venue is great for music lovers because there's not a bad seat, I mean standing spot, in the house. Get cozy and personal with the band. Be forewarned, this place is packed out in the summer and on weekend nights. Getting a refresher might be tough but no fear, check out the back deck bar anytime for easy access. You can check out their website for the calendar for live music and more. The Windjammer is also famously known for their Sunday afternoon bikini bashes in the summer. A popular radio station hosts the event on the back deck. I spent many a day and nights at this spot in my younger years and I have many fond memories of good times! You can also always check out the view of the surf, the volleyball court, the deck, or the bar at The Jammer Cam.
You may have heard that the housing bill passed two weeks ago will end Downpayment Assistance Programs on September 30th, 2008. However, it's important that you know that recently, many government investors have begun proactively eliminating the program in advance of that deadline, like Chase. As one of the market lenders in the banking industry, they do set many trends which means other banks will follow suit. I have been given information from one of my lenders that the guidelines they have set for their bank is that all FHA loans that use Seller Paid Down Payment Assistance Programs must be closed and funded (disbursed) by Wednesday, September 10, 2008!!! Schedule your closing before this date to ensure funding! This means that if you do not have a ratified contract in hand by the end of next week in order for it to get to underwriting, you will narrow your chances of being able to take advantage of this program! There are some great deals out there and some willing sellers that want to participate in this program before it's too late. Seller participation of this program means you can stil purchase a home with little to no money down.
If you are a buyer, ask me how you can buy a house with little to no money down before this program ends. If you are a seller, ask me how you can take advantage of this to help expedite the sale of your home before this opportunity ends. TIME IS OF THE ESSENCE!
www.CharlestonRelocationExpert.com
2007 closed out the Charleston residential MLS with 12,653 closed transactions. This is down from 2006 close out at 16,760, but when we look back at 2003 (the start of the boom), we only closed 11,720 homes. Let's face it: Things did get carried away in 2004 and 2005. But when you consider where we started, we are still up on transactions.
2007 was different in that there were a total of 27,476 NEW listings during the year (compared to 2003's 16, 486 new listings). The good news is that we closed out the year with 9,862 active listings down from year's high of almost 13,000. This means that inventory is reducing!
What we saw differently in 2007 is the average days on market was extended for sold properties to 96 days on the market, compared to 68 days in 2006. Sellers receivied 96.46% of list price (compared to 2006 list to sale ration of 97.26%). The average list to sale ratio has hovered around 97% since 2003 (with the exception of 2005 at 98.13%) which also shows that we really aren't that far off from normal. Active listings have currently been on the market for an average of 169 days which still shows that there's a lot of property out there that isn't getting sold.
Sellers that want to sell really need to consider making improvements to attract buyers (hardwoods floors, updated kitchen and baths) or reducing the price. Otherwise, they need to be prepared to wait it out. Average showings only 2-3 per month per house, only the best looking AND best priced homes will show. Overall, I think 2007 was a success! Charleston has held strong compared to other falling national markets. While appreciation has slowed on average, we are still in the positive. Falling numbers have less to do with property depreciating, but desperate builders and sellers dropping prices to unload. At the current rate of appreciation, I would recommend buyers carefully considering their purchase in order to not overpay and make sure they will be able to hold onto the property for a minimum of 3-5 years to break even.
Year New Sold Avg Sold $ Avg DOM %SP/LP % +- appreciation
2003 16,486 11,720 $225,545 140 97.08% 4.83% (from 2002)
2004 18,834 14,277 $252,997 80 97.47% 10.85%
2005 24,023 18,074 $277,875 61 98.13% 8.95%
2006 28,782 16,760 $290,687 68 97.26% 4.4%
2007 27,476 12,653 $298,545 96 96.46% 2.63%
Charleston SC Relocation Expert serving military familes. Charleston resident for over 20 years, Former military brat, proud military wife. Ask me how I can make and/or save you thousands of dollars!
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