I have been with BB&T for twenty three years and in the mortgage banking industry for over thirty years.  My goal has always been to earn my client’s trust by providing professional service and sound financial guidance that will develop into a strong and lasting banking relationship.

BB&T was established in 1872 and for the past 140 years we have shared our knowledge with our clients.  By offering sound advice and personal attention, we help our clients make informed choices as they manage their day to day finances and set a course to reach their long-term financial goals.

In the area of mortgages we offer an array of mortgage loan products that I’m sure together we can determine the right fit for your personal financial needs.  First time homebuyer?  We have a product called the CHIP that in some cases offers 100% financing without mortgage insurance.  Building a home?  We have a Construction/Perm product that has a one time closing that provides financing during the construction phase and when the home is completed rolls over to a permanent loan.  Looking to purchase an investment property?  We offer Non-Conforming financing on investment property.  These products are just a few of many mortgage financing options offered at BB&T.

Debbie is one of our preferred lenders and BB&T is a bank that I fully endorse. Their products and services always seem to outshine the competition! Please consider contacting Debbie Malone at BB&T for all of you lending needs! From all of us at The Fred Holland Team and BB&T, we wish you a Merry Christmas and Happy New Year!

Debbie Malone dmalone@bbandt.com (843) 406-6654

Due to the increase in our business and pursuit of new and exciting adventuring avenues, we have not been updating the blog as often as we would like. With that said, we are proud to annouce that this blog will begin being updated on regular basis shortly after the Holidays. We will be providing a wealth of useful information as many of our followers have benefited from in the past. In the meantime, we at Fred Holland, would like to wish a safe and Happy Thanksgiving to you and your families!

We are now a top REO agent in the Charleston area! We service several banks and our expertise has allowed us to be on the TOP listing teams in the Charleston Area! How does this benefit you? We know how banks work and think so we can assure our buyers who  are looking to purchase a foreclosure that we are the expert agents they deserve! If you are an asset manager, please ask for references! We would love to help your bank liquidate your properties in the Charleston Area! We are Res.net Certified!!

Be prepared before you meet with an agent!

One of the first questions I get from a buyer when I first meet them is what will it cost to hire you (me)? I will address this question but first you must understand a few things. It is illegal for agents at different companies to group together and decide on what commissions will be offered. It is not illegal for a COMPANY to tell their agents what the commissions offered will be. Some examples are:

Joe with ABC Realty had a company meeting. At the meeting he was told that any member of ABC shall take no less than 6% commission aka Brokerage Fee for each listing they get. This is legal. Now let’s say Joe with ABC  Realty met with Samatha at XYZ Realty and they said that neither company will list a property for less than 6% commission or Brokerage Fee. This is illegal. That is why you will see advertisements from different companies offering special commission rates, rebates or discounts. A rebate can be a touchy subject but basically it is monies given by the real estate company at closing to the individual who used that agents company to buy or sell their home. I personally will never offer a rebate but we will always negotiate our commissions.

Buyer’s agents can receive their compensations in numerous ways. I personally only receive my compensation from the listing agent who receives their monies from the seller. If I have a buyer who wishes to pursue a For Sale By Owner than I will ask for a commission directly from the seller in the form of a “one-time showing agreement”. If he declines then I will not receive any compensation if my buyer buys that home. This is a personal choice and practice. Make sure to read your buyer’s representation agreement carefully and ask how will your agent receive his compensation. Some agreements may call for the buyer to compensate the agent.

An important question to ask when you hire a listing agent is what will the compensation be to the buyer’s agent. Its unfortunate but some agents may or may not show homes unless they are offered a certain amount of commission. This could be  a very important issue when trying to sell your home. In this market every potential showing is important. Is it unethical for a buyer’s agent to not show a home that may fit their clients needs because of the compensation offered? I will leave that to you to decide!

We once again thank you for reading our blog and remember to always consult your local Real Estate expert ! If you would like to contact us about this blog or others please email me at josh@fredhollandrealty.com or call 843-343-1307.

What many people do not know is that appraisals are the key ingredient to obtaining a home loan. Appraisals are now ordered by a 3rd party unless the buyer is using an FHA loan. Long gone are the days when the lender could call up their favorite, educated, experienced appraiser to determine the value of the home. This has created some major problems that need to be addressed! I am going to give you an example of what you may encounter right now! Let’s say I represent the seller who has his multi-family income producing duplex under contract. It appraised in Nov of 2007 for 165K.  (Worst case scenario the market in this community has dropped 20% since then) The offer price was $138K. The single-family DETACHED comps for this area would put the price of this home well above 160K! With that said, they have to find multi-family comps so that is where the problem starts. Unfortunately the buyer was not obtaining an FHA loan so the appraiser was ordered through a 3rd party. The appraisal came back at 90K with comps that were NOT comparable! When I spoke with the appraiser I could tell he was inexperienced and uneducated as he/she used comps that were not comparable and was unfamiliar with the “gross rent multi” method. That is the method that should hold the most weight when an appraiser determines a value for an income producing property. It can be used to suggest a value and/or adjust for location value. I contacted three (3) appraisers who all felt the individual did not do a good job and they all felt they could justify at least 130K. We paid for an appraisal to verify this but unfortunately it cannot be used. So what does this mean for my seller? At the moment they can either pull the property off the market, hope to find a cash buyer and/or hope a buyer obtaining financing gets a lucky draw and the bank hires a experienced appraiser. This is truly sad since the value is their unlike other times where foreclosure and/or short sales have dropped neighborhood values drastically. YES, appraisers do use distress sales as comps. In my opinion it is  TRULY IGNORANT but as one appraiser I spoke with said, “it is considered market value because it was similar in condition and location. It was also the price someone was willing to sell and pay”! I guess you can make a case either way. I am going to go much more in detail about other issues that can come with appraisals and what options do we have! Did you know your agent can work with the agent in trying to justify the value? The lender CANNOT! I will say it is a very delicate situation with a liability so be careful. I hope you enjoyed the blog and as I said, I am going to dedicate a few more to the sensitive subject of appraisals! As always, consult your local real estate expert and never recommend any information found in this blog as each transaction is unique. Lastly, laws differ from state to state so once again always consult your Realtor first!

571 Two Mile Run Johns Island, SC 29455

PRICE: $135,900

LOT: 0.31 Acres Marsh Front

Description:

BANK OWNED! LOWEST PRICED LOT ON THE MARSH IN GRIMBALL GATES! Here is your chance to build your dream home on a cul-de-sac MARSH FRONT lot with an affordable price. Grimball Gates is an elegant gated community with a nature trail, fishing pier and floating docks. This lot truly offers the best of Johns Island living for an inexpensive price. Agents read notes & contact L/A for showings!

Please contact The Fred Holland Team with any questions! josh@fredhollandrealty.com or 843-343-1307

1208 Gregorie Commons Johns Island, SC 29455

Price: $499,900

BED: 5   BATH:  3 1/2   Square Footage: 3002

Description:

BANK OWNED!! LUXURIOUS LIVING AT AN AFFORDABLE PRICE WITH A PREMIER JOHNS ISLAND LOCATION! Agents alert your home buyers and investors! Rushland is an extravagant community with prime location being just a dozen minutes to Downtown Charleston! This gorgeous home is priced WELL below the PPS for Rushland over a 1 year period. (Note CMA included A,AC,P & S)Everything about this home suggest quality & elegance. Starting with the exterior, this home has cement plank siding, fashionable metal roofing,a full front porch overlooking a beautiful front yard with views of a Lagoon made complete with your very own palm trees and a white picket fence! The back of the home has a large deck creating wonderful river & lagoon views. The large lot provides plenty of room for off-street parking and the home is equipped with a 2 car garage. The interior of the home speaks it for itself. The custom tile, beautiful hardwoods and wall to wall carpet cater to every individual and their flooring preference. The gourmet kitchen has stainless appliances, a kitchen island, gorgeous cherry cabinets and granite countertops. The large living room has custom shelving, fireplace, outside access and wonderful views. The master bedroom has two ceiling fans with his and her closets,. The master bath is equipped with a whirlpool tub, custom tile walk-in shower, private water closet and dual vanity sinks. All the fixtures in this home are top notch and the vanity countertops are absolutely stunning! The impressive staircase leading to the 2nd floor is made out of wood with Iron Balusters. The LARGE 3rd floor bonus room is wired for surround sound and offers priceless views of the river & lagoon. Rushland has three (3) community docks on the Intra Coastal, miles of walking trails, stocked lagoons, a community pool and a clubhouse/Open Air Pavilion. The bank has informed us to get this property SOLD! With this price, we should achieve their goal! ALL JENN-AIR Stainless Appliances Convey!! Agents Read Notes
If square footage is important – MEASURE!!

If you have any questions or would like more information on any other properties please contact The Fred Holland Team. You can reach us at (843) 343-1307 or josh@fredhollandrealty.com. Please visit www.fredhollandrealty.com to view this listing and more!

A-1 Mariner’s Cay Marina Folly Beach, SC 29439

Price : $72,000

Description: **BANK OWNED!** MARINERS CAY IS A COMPLETELY RENOVATED,PRIVATE MARINA SITUATED ALONG THE PROTECTED AND PRISTINE FOLLY RIVER. MINUTES TO THE STONO RIVER AND OPEN WATER. THIS IS A GATED COMMUNITY W/ FULL SERVICE FACILITIES WHICH INCLUDE CITY WATER,POWER HOOK UPS FOR BOTH 30AMP & 50AMP ELECTRICAL SERVICES,STATE OF THE ART FUEL PUMP, PUMP OUT STATION,AND FULL SERVICE SHIP STORE AND DOCKMASTER SERVICES. OTHER AMMENTIES INCLUDE RESTROOMS,SHOWERS AND LAUNDRY FACILITIES. PRIVATE ENTRY FROM PIER TO THE DOCKS. ****60′ X 23′ SLIP****BRING ALL OFFERS.

What is earnest money? When a buyer attempts to buy a home they should, but are not required to,  give some sort of earnest money. This suggests to the seller that the buyer is serious about buying the home. It’s more or less a good faith jesture. Once my buyer’s write an offer I then have them write a check to the escrow agent. That agent is usually the listing or selling real estate company. I then make a copy of that check to submit with the offer. Once the contract gets ratified we then have 48 hours to deposit that check into an escrow account. There is not an industry standard for the amount of earnest monies required. I generally suggest 1% but have seen much less or more. When a seller accepts a contract they will pull that home off the market. That means they are risking valuable marketing time in hopes that you are a serious buyer. If there is not any earnest monies then the buyer has much less risk.

What if I do not buy the home? If you are a buyer and have proper contingencies in place then you should receive your earnest monies back. A seller can choose not to sign a release and in South Carolina we cannot release monies until this is taken care of. If your a seller, then unless the buyer is in a clear breach of contract I always suggest signing a release. In most cases the buyer receives their monies back and you lose the marketing time that the home was marked as contingent in your local MLS.

The Fred Holland Team hopes this blog gives you a little insight into earnest monies. Remember that each market is different and to always consult your local expert. If you have any questions for us, please email josh@fredhollandrealty.com or call (843) 343-1307.

What are closing costs? These are costs that will be acquired at the closing. In most cases the day before closing you will receive a HUD-1 aka Settlement Statement. That settlement statement will itemize all of the costs to a buyer or seller. It will also tell a buyer how much to bring if any to the table. The monies are usually requested to be in the form of a cashier’s check. Some example of closing costs to a buyer are:

Origination Fee= 1%

Attorney Fee’s

Pro-rated Items such as interest, HOA fees, insurance and more.

Title Insurance

Misc Fee’s

Appraisal

and more….

A good way to have a buyer save their liquid and bring the least amount of monies to the table (if any) is to request the seller to pay the buyer’s closing costs & KEYWORD pre-paids. I think it is vital to have a buyer with plenty of reserves in the bank when they purchase a home. By the seller paying the buyer’s closing cost it enables the buyer to only increase or maintain the amount of reserves they already have. Unless you are going FHA the max amount that can be paid is 3% of the purchase price. In past years 3% used to cover almost all of the closing costs. As of late I have noticed that 3.5-4% is what is needed to cover closing costs. Of course this all depends on when you are closing, where you are buying, how much are you financing, are you receiving any discounts, the purchase price of the home & more.  With FHA financing the seller can pay up to 6% in closing costs. This cannot be applied to a down payment though. Unfortunately, the down payment assistance program is no longer available. I personally felt this was a wonderful product that allowed a responsible buyer with good credit, work history and more to purchase a home if they did not have 3.5% to put down. Before you make an offer on a house ask your agent to run a HUD for you or get a good faith estimate from the bank. Review the form and pay attention to your closing costs. Ask your agent if you should ask the seller to pay closing costs. In the standard South Carolina real estate contract their is a closing costs clause, in this section I write “seller to pay 3% in buyer’s closing costs and pre-paid items.” In my experience most buyer’s request the seller to do so.  With that said, it may not be a good option for you. For example, if you are financing much less than the offer price I would suggest just offering 3% less instead of asking for closing costs. Remember a big part of your actual costs are based off the loan price and the seller may be able to pay all your closing costs with less than 3% allowing them to net more at closing. Please ask your lender what happens to the extra monies if your total closing costs are less than 3% and you requested the seller to pay 3%. Some products or markets may allow monies to be applied in different places.

The Fred Holland Team sincerely hopes you enjoyed this article. Please remember to consult your local expert before taking advice from this blog.