All signs point towards 2012 being a significant year, in terms of the real estate market gaining a lot of clarity with respect to the movement of shadow inventory (foreclosed, bank-owned homes, pre-foreclosures, short sales and homes heading towards a foreclosure "sale date").

If you're a buyer, you have the perfect buyer's storm to navigate through and come out smelling like a rose! Inventory, competition in the marketplace and resulting downward pressures on home values, more short sales, more foreclosures and historically low mortgage interest rates all make for an exciting moment in history to be a buyer in the real estate market! Now is the time for you to find a great house and get a great deal, with a very low mortgage rate and enjoy an affordable house payment!

However, if you're considering selling, you have some very sobering realities headed your way. It is expected that this year we will see lenders begin to push through their shadow inventories more aggressively. This means that you must decide how badly you want to cling to your fantasies that your home is worth "X" and that you won't sell for any price below "X" because you truly know and believe that your home is worth it and you'll get it and you'll enjoy the benefits of holding out if need be, and you'll laugh all the way to the bank! Good luck with that strategy!

The bottom line is that we are coming up on the busier season and you will therefore have more competition on the market. Also, as banks work through the process of either modifying existing loans or encouraging their borrowers to seek a short sale listing or risk being foreclosed upon, you will see a large swell in the marketplace of short sales, and also foreclosed homes hitting the market. This only adds inventory to the marketplace and also puts immense pressures on home values in general, thus making it a challenge for conventional sale hold-outs who insist on waiting for that magical buyer to bless them with a contract sales price of "X", when many similar homes within a half mile radius may actually be selling for "X-20%".

As as seller, I would encourage you to simply be honest with yoursef regarding your overall situation and your ultimate objectives, and then make an informed decision to execute a sales strategy that helps you nail your objectives.

As a seller, are you a conventional sale with substantial equity? If so, and if you do not have to sell but would like to sell, then you have the luxury of holding out for "X" dollars, but don't forget that your home may just sit and bake in the sun as buyers keep moving on and viewing and submitting offers for more competitively priced homes. Whether you like it or not, it's a buyer's market right now!

If you are extremely tight on your equity position, and especially if you have to sell for some reason, you should be consulting with a short sale listing expert, such as myself, so that you can understand what your options are! Trust me when I tell you this; you do not want to start intentionally missing payments because you think that you are supposed to have missed multiple payments before you will ever be approved for a short sale! This is not at all the reality of the marketplace. Missed and/or late payments will damage your credit score! I have personally executed short sales for clients who have never missed a payment and never made a late payment! Provided you can show some form of a hardship that helps the bank to justify the need for and to allow a short sale, then you can get a short sale approved (depending on the lender and the circumstances of the hardship), without ever having missed a payment.

If you are underwater on your home's mortgage, and you can no longer afford the payments, it is extremely wise to seek help ASAP from a short sale listing expert. Do not miss month after month of payments and then decide to seek help once your lender is threatening you with foreclosure! Let me ask you this; would you rather have your lender seek a deficiency judgment against you for $25K or for $50K? Silly question, but that's exactly the potential damage you could be asking for by delaying the execution of a short sale! The longer you wait the more competition on the market and the more downward pressure on your home's value. Let's assume your lender agrees to a short sale and also agrees not to pursue you for any deficiency amount. Now, same question; would you rather your lender issues a 1099 with your name on it to the IRS for $25K or for $50K? That's exactly the risk we're talking about if you delay making an informed decision to pursue a short sale ASAP in today's real estate market.

If you are someone who has waited too long and you have a "foreclosure sale date" set by your lender, then you are obviously in a very difficult position. There is a possibility of a "Hail Mary pass to the end zone", depending on how close you are to the sale date, and your lender's willingness to work with you at this point. You would need to list your home as a short sale immediately, and position it aggressively in the marketplace to secure a contract ASAP and get it, along with a preliminary HUD and all other required paperwork to your lender ASAP. In doing so, your chosen, brilliant short sale listing agent would get on the phone with your lender and respectfully request a suspension of the foreclosure sale date so as to allow the bank to review the short sale offer and paperwork that was submitted. This is a difficult situation and it won't always work. However, I have been able to successfully execute a "5 seconds left in the game, and a Hail Mary pass to the end zone" strategy that resulted in a successful short sale and a foreclosure averted for my seller clients. It's stressful, exhausting and unnecessarily nerve-racking and it can be avoided if sellers simply face reality and seek help earlier than later!

All too often, I see the "conventional sale/strong equity" sellers make a huge mistake by holding out for "X" dollars (an amount at or beyond the highest possible thresholds of current fair market value). It almost always bites them in the end, as they end up conceding and selling for what I told them their home would eventually sell for, and all they did was burn months off the calendar!

Remember, you may not get as much as you wanted in the sale of your home, but if you turn around and leverage the buyer's market in your favor, you'll make up for it on the buy side!

It is critical to understand today's market if you are considering selling your home. Most experts agree that the shadow inventory is going to begin moving through the market this year. Sellers need to make educated, informed and strategic decisions so as to successfully navigate today's challenging real estate market.

Kirk Westervelt, BA, CDPE, SFR, REOS, BPOR

Keller Williams Realty

Greenville, SC

(864) 451-2402

When it comes to historic homes in upstate South Carolina, there are a variety of factors that play into an inspection. It pays to have an expert on your side to uncover any possibly dangerous situations before they complicate your buying process.

Some homes that are designated historic are simply old homes, however, the term “historic home” can also refer to a home that has been landmarked by a city, county, state or by the federal government. Home buyers love historic homes because the purchase can often qualify them for low-cost loans or tax breaks. In return, however, the owner must agree that any changes will comply with certain requirements, and that’s where an inspector can be a major asset. Many of the requirements center around maintaining the nostalgic appearance of the historic home, and landmark committees can often be very demanding and insistent.

As an inspector, one of the things that I am looking for when it comes to a historic home is the context of the time period in which the home was built. Experience is everything in this business, which is why it’s important to contact an inspector who is familiar with the building practices and codes used for your particular home.

Specifically, I often focus my time and attention on parts of the historic home that are exposed to the elements, like the foundation, wall coverings and roof. Other important parts of a historic home to look at include the structure, the exterior, windows, electrical, plumbing and heating systems, and perhaps most important, the use of toxic materials. Asbestos is probably the most common material that is found in heating system exhaust ducts in historic homes, but it was also used in flooring and roofing tiles.

It’s really important for buyers looking at historic homes to remember that alterations may not be possible even after you’re an owner. Having an expert inspector on your side to advise you about a historic home before purchase can help avoid disappointment down the line. In upstate South Carolina, there are a variety of historic homes for sale, and it’s my pleasure to assist buyers with their inspections. I’m happy to lend my services, so please give me a call!

Greenville SC Real Estate Market Report – November 2011

There was a significant upswing in closed sales for the month of November in the Greater Greenville SC Real Estate Market. The Upstate saw an 8.6% increase in sales over the previous year and that increase has added a guarded sense of optimism to the market.

As I noted last month, the trend in the reduction of inventory continued into November. The number of homes for sale decreased by 15.6% over last November and is at its lowest level of the year and our supply of homes is down to 11.6 months after being at a high of 14 months back in May.

For the last few months we’ve seen a steady decrease in the amount of inventory, although we are seeing some improvement in the market, we haven’t seen a corresponding uptick. Part of the reason continues to be the stringent requirements of lenders.

One other trend to watch going forward is the days on the market. We’re seeing an increase in the time it takes to sell a home in the Greenville market go from 104 days to 115 days over the past year.

Overall the Greater Greenville market continues to see improvement. With the lowest unemployment rate in the state and the what seems to be continuous announcement of new jobs coming to the area, I’m cautiously optimistic for 2012.

A economic video report for Greenville, SC from the Homebuilders Association of Greenville:

http://www.hbaofgreenville.com/greenville-sc-economic-report-third-quar.php

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When it's time to buy or sell real estate in Greenville, SC you need to work with a realtor who is honest, trustworthy, and knows the market. Dave Edwards - Greenville, SC Realtor - makes a strong effort to keep up with Greenville, SC market trends by analyzing market information on a daily basis. Who do you know that needs to sell? Contact us today at 864.275.7250.
Based on sales by GGAR members and CRS data.