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.

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

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!

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.

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.

When I work with buyer’s I always attach an addendum to my contract’s. Addendum’s supersede the contract so that is where I place my buyer’s contingencies. That addendum states that “the contract is contingent on buyer’s sole approval of all inspections, financing and affordable insurance. In the event buyer is not satisfied this contract is considered null & void or re-negotiable and earnest monies will be returned.” This reiterates some items already placed in the contract but it’s always good to reinforce them. Take note  that it has no dates and vague terms. An example is affordable insurance: What is affordable? When do you have to decide by? This addendum helps insure my buyer’s protection from the negotiations to closing.

What should the seller’s know? What do they do when they receive this addendum?

If I received an identical addendum and represented the seller, then I would advise that they counter the addendum. I would suggest adding date caps and removing the affordable insurance contingency. You want to make sure that this is a serious buyer whom is not wasting your valuable marketing time. The earnest money should suggest the seriousness of the buyer. Without risk of losing the earnest  the buyer may not be as serious or motivated as others with their monies at risk. You as the seller can always refuse to sign a release but unless you have good reason, it is not wise. By countering the addendum it allows the buyer and seller to take equal amount of risk. The idea is to avoid situations where the buyer’s does not  show up to the closing and the seller has made repairs and/or arrangements to move. Keep in mind the buyer usually takes possession on the day of closing so the seller is almost always packed up well before then.

I hope this article gave you some insight into the wonderful world of real estate. Please remember to always consult your local agent and do not use this article as advice solely for your transaction. Each real estate deal is unique. The real estate business is constantly changing and evolving. New laws appear and old ones may disappear. If you every have any questions about our local market please don’t hesitate to contact The Fred Holland Team!

Price: $214,000

Bed: 2  Bath: 2  Sq. Ft.:  1074

Description:

15K PRICE DROP! This high demand style in Mira Vista is priced to sell! Truly a great location at a great price. The best condo community on James Island offers many amenities. A swimming pool, hot tubs, wonderful fitness area and a security gate to offer seclusion. This popular floor plan comes with custom made bamboo blinds, crown molding throughout,washer, dryer and laminate floors. Both bedrooms are good size and each have their own bathroom. One bedroom has garden tub and the other has access to a screen porch. Close to the connector and just a short drive to the beach. HOA includes insurance.
If square footage is important – MEASURE!!

If you would like more info on this property or others then contact The Fred Holland Team! You can reach josh at (843) 343-1307 or email me josh@fredhollandrealty.com

Find an Agent: The first and most important step!  Make sure you hire someone you are comfortable with. Interview them and they should interview you. I always approach each listing appointment with an idea that I am interviewing them as they interview me. The process of selling a home can build some great friendships and also destroy them. I like to make sure that I am working for a seller that I feel is honest, understanding and willing to do what I need them to. Make sure you build a relationship built on trust. You will most likely disclose things to your agent that your close friends don’t know.

Run a CMA & Estimate Closing Costs: Once you have hired an agent it will be time to decide pricing. The first step would be to gather your mortgage statement and figure a payoff. The agent will then run a CMA on your home. This is basically an appraisal for real estate agents. The agent should also run an estimated closing costs sheet. This will include your loan payoff. Once you and the agent determine that the market at least supports the price you need to payoff the loan and closing costs, you should then set a list price. I like to offer my clients 2 different types of pricing. An aggressive and conservative price. I then explain the different type of marketing packages that come with it. The seller then makes a decision based on the information I gave them. In most cases we meet in the middle of the two prices.

Sign a Listing Agreement: Once you have determined a price and start date, you will then sign a listing agreement. Make sure you read carefully through the entire agreement before signing anything. You may also have other documents to fill out such as: Lead-Based Paint Disclosure, Seller’s Disclosure & more. It will depend on which state you are located in or which agent you hired.

Get an Offer: Once the property is put up for sale and has been placed in the local MLS, it’s time to hopefully get an offer. Please note that in this market, it takes time to sell a home. I never promise a seller I will sell their home in a timely fashion. What I do promise is to give 110% to achieve that goal. Ask your agent to run a new net sheet at the offer price to see what you would net if you accepted that offer.

Negotiate & Contingencies: Once you have received an offer you can then counter, decline or accept it. Please have your agent explain all the contingencies the buyer has put in place and what are the key dates. In SC, the seller is usually asked per the contract, to provide a clear CL100. In most cases you will be required to deliver a free & clear title.  Some buyer contingencies you may see is: inspection, financing, insurance, cl100, clear title, contingent on the sale of the buyer’s home & more.

Hire an Attorney: You will then need to hire an attorney to handle your deed prep. I suggest hiring the attorney and doing the CL100 after the buyer has removed some of the contingencies. Of course I make sure that the dates on the contract allow me to hold off and everything will still be done in a timely fashion. By holding off that decreases the chance you would owe any monies to the attorney or have paid for a CL100 you cannot use if the buyer backed out of the deal.

Possession: Make sure that you are packed up and cleared out the day of closing. In most cases the buyer will take possession as soon as the closing is over. Unless you negotiate possession after closing, make sure you are prepared. During the process of this contract make sure to maintain the home in the same condition it was when the buyer made the offer. Make sure to ask your agent about possession.

HUD & Closing: When you get to the attorney’s office you will sign deed documents and review the HUD. The HUD a.k.a settlement statement will itemize all the costs of your transaction. The seller usually has 5 closing costs. These are: Real Estate Fee, Deed Prep, Pro-rated taxes, CL100 and Deed Stamps. Once all the documents are signed and the monies have been received you will have sold your home! Please note that closing costs vary from transaction to transaction. In no way, shape or form is this a guarantee of what your closing costs will be or only be.

There is so much more to a selling a home but hopefully this will give a little insight on what to expect. You should always consult your local agent. The Fred Holland Team truly wishes that your transaction is a successful one and we are available 24/7 for all your real estate needs.