Spartanburg, SC

Pre-Inspection can save you money and heartbreak. Imagine getting an acceptable offer on your home and then having thousands of $$$$$ worth of unknown repairs that are needed, or worse yet, the potential buyer gets scared and backs out. You may think your home is in good shape, but hidden defects behind the walls and under the house can cost thousands to repair. You could be left with renegotiating your price or spending unplanned money at the last minute to make repairs.

Experience shows that Pre-inspections help you get things in order ahead of time, for the least cost, while preserving your final negotiated price and helping to sell your home. Your Realtor should also use the pre-inspection and repairs as part of their marketing plan.

The second inspection you should consider is the Termite Inspection. This inspection is for wood infestation, mold and moisture under the home. If you have not had your home inspected in the past year, have it inspected; even if you have no plans to sell your home. If you have a termite Bond, make sure it is current and can be transferred to the new owner. Most buyers will want assurance that the home has been well maintained. A termite bond is a great investment.

Absorption rate is about supply and demand. It should be used to help the sellers understand where their home is positioned relative to competitive offerings in terms of anticipated days on market. The formula is not complex, but you must have data representative of the specific market your home is in (i.e. size, age, location, features).

If you need to move in 6 months, but the absorption rate is 12 months, you will have to reposition your home such that it will sell in less time. In our area Appraisers typically do not use absorption rate as part of valuing your home, but it is essential in positioning your home competitively and should be updated every month in a rapidly changing market.

Although the Upstate of South Carolina has not been exposed to the same fate as many other parts of the country, we are in a Buyer's Market. There's a surplus of new and existing homes and there are fewer potential purchasers for the homes that are available. It is indeed a great time to purchase.

Unlike a Seller's Market, with low inventories and lots of potential buyers, you have to do more than place a sign in the front yard. You have to properly position your home based on the competitive offerings with the right price and the right product.

For the sellers, they face a challenge in positioning their home in order to get it sold in the shortest amount of time and at a fair market value. Most home owners don't understand that they must get their home "Pristine" both inside and out and "De-Personalize" it. Yes, price, location and condition are also very important factors, but in today's market you must do more!

Get it Ready to Show:

• Light Fixture and Plumbing hardware can take years off the age of your home.
• Fresh Paint can brighten your home, but be careful of the colors you use.
• Clean, Clean, Clean! In order to make the home appealing and don't forget those pet odors.
• De-clutter. "Clutter Eats Equity", so box up items that take away from space and neatness.
• De-personalize. That's right; remove family photographs and your bowling trophies. Even some of your furniture and accessories may turn off potential purchasers. The items that make you feel like it's your home, take away from the potential buyers ability to see the home as "their next home".

Be Careful of Upgrades and Additions:

• They may add appeal, but you may find you get 70% or less of your investment back when you sell the home.
• Energy Efficient additions have a good return on investment. New Efficient HVAC and Appliances along with new windows are among some of the better investments.
• Upgrading kitchen counter tops can also be a winner. However, you should know what the competitive properties are offering before making these upgrades as you can over or under do based on these comparables.

Our Recommendations:

• Consult an experienced Realtor. They can guide you through the process and provide you with expert advice as to positioning your home among the competitive offerings.
• Consult a Home Stager. Most consultations are less than $150 and you get a complete written report of recommendations. If you require other services they will be billed separately. However, many of their recommendations you can do yourself.
• Consult a professional landscape designer. Curb appeal is extremely important for those who drive by and especially for those who view your home on the internet. Internet shopping is used by 87% of home buyers and if the photograph of the exterior is not appealing they will go to the next home without even looking at photos of your interior. Again, many of their suggestions you can do yourself.

Statistics show that if you do the right things you will be rewarded. You will sell your home much quicker and will receive the highest competitive price.

With the lower interest rates, homes are more affordable than ever. Interest rates are reasonably stable at around 5% for qualified buyers and as low as 4.25%. When compared to 7.5% rates just a few years ago purchasers have a lot more buying power. Today home buyers can purchase a very nice three bedroom, two bath single family home for $120,000 and pay $626 per month*. This is much less than rent for a similar property. For First Time Home Buyers, who qualify for the Tax Credit of $8,000, it's like living free for the first year.

Move-up buyers with a current mortgage of $200,000 at 7.5% are paying $1398 per month*, can now move up to a mortgage amount of $250,000 and pay about $100 less*. If the Mortgage amount is $300,000 the move-up is to $400,000 for the same payment*.

Downsizing Buyers also benefit. These are home owners who want less space, lower utility cost and may be on a fixed income. If they have a $400,000 mortgage amount they can move to a $300,000 mortgage and save more than $1200 per month*.

The other element, making now a great time to buy, is the ratio of supply to demand. Those looking to purchase will find a more than adequate supply of homes to meet their needs at prices of three to four years ago. No matter what price range you are looking at purchasing, there is a great selection of homes to meet your needs.

Spring kicks off the "Buying Season". This is a period of 6 months or so, when the number of potential purchasers will make decisions on their next home. If you are considering making a move, we highly recommend you use the services of a qualified real estate professional to represent your best interest in the transaction.

*Payments are calculated on principal and interest and do not include Taxes and Insurance. Check with your Mortgage professional for current rates and payments.

Economics wizard we are not! As Realtors® we take a different view of how the Economic Stimulus Package will impact those looking to purchase a new home or sell their existing home.

The key point of the plan is to stimulate the market from the bottom up. Give first time home buyers an incentive to purchase a home ($8,000.00 Tax Credit!). Many of these will be existing homes and those selling their home have the opportunity to move up to a more expensive home. As they enter the market place they too stimulate the market by moving up to a more expensive home and so forth.

The other key area is to help people keep their homes from going into foreclosure and therefore reduce the inventory of existing homes. These foreclosures (and short sales) account for as much as 30% of the market in our area as high as 85% in other areas.

The third key area is to reduce mortgage interest rates. This benefits purchasers of all homes and home owners with high interest rates that would benefit from refinancing their existing homes to reduce their monthly payments. (See Affordability Below)

The anticipated result of these key elements should result in more potential home purchasers and less inventory which will help those trying to sell their home. It should also stimulate New Home Construction which in turn creates more jobs and impacts our local economy.

Will it work? In theory, this "trickle-up" strategy should improve the real estate market and bring property values to where they should be (although our home values have been more stable than many other areas of the country). It should also bring back the infusion of home buyers wishing to move to our wonderful upstate area once they get their homes sold in Michigan, Florida and many other states.

This is no quick fix. It took years to get into this mess and it will take some time to get us out of it. The Tax Credit for First Time Home Buyers expires December 1^st, 2009. Those wishing to take advantage of this great opportunity need to act soon or they will miss their opportunity. If the surge of anticipated buyers does not come, it will certainly slow the recovery.