Charleston South Carolina Real Estate » Property

The secret market killer! Appraisals!!!!

Joshua Brandner — Fri, 11 Dec 2009 21:14:56 +0000

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!

Bank Owned Property!

Joshua Brandner — Thu, 08 Oct 2009 13:58:38 +0000

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

Buyer Contingencies….

Joshua Brandner — Mon, 03 Aug 2009 13:55:45 +0000

Contingency! When you’re attempting to purchase or sell a home, this word will be the most important! I would like to give a brief description of some you will see and what to expect.

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!

New Listings! Charleston, SC Properties For Sale

Joshua Brandner — Wed, 24 Jun 2009 14:16:41 +0000

Each time LaJuan or I get a new listing we will post it in our blog. This week we have two new listings!

1960 Folly Road Charleston, SC 29412

PRICE: $2,200,000

4.00 ACRES with Marsh VIEW, PRICELESS LOCATION and ZONED C4! TALK ABOUT EXPOSURE. A recent study indicated that on average 1000 cars per hour arrive on Folly Beach. Another study done by SCDOT indicates that 14K-18K cars would passy by this location. As many locals know, the weekend traffic is at a stand still. This means more potential customers for your business as they wait to get on the beach. There is also a new gas station and Piggly Wiggly directly across the street! Considered a luxury to some, this property has public utilities available and can be accessed from Folly Road or Teal Marsh Road. The property is in the City of Folly Beach and has design board approved plans which have been uploaded. The plans contain mixed use and call for a 42 unit residential community and strip center.

1030 Secessionville Road Charleston, SC 29412

Price: $199,000

JAMES ISLAND BELOW 200K! This 3 bedroom 2 BATH (take note) home is located only 10 minutes (that’s with traffic) from downtown, 5 minutes from Folly Beach. Huge fenced in backyard for pets with 7′ X 10.5′ shed. Two bedrooms are carpeted and share a bathroom on the east side of the home. Between those bedrooms and the master bedroom lies Italian ceramic tile in the kitchen and dining area and floating hardwood floors in living room. Living room has 14′ vaulted ceiling, kitchen and dining area have 12′ ceilings. Master bedroom has new brazillian cherry wood floors and 12′ vaulted cathedral ceiling. The heating/AC unit is just a few years old. Two huge live oaks on either side of the two-car driveway.

Please contact the Fred Holland Team with any questions regarding these listings and more… josh@fredhollandrealty.com or 843-343-1307

Featured Property

Joshua Brandner — Fri, 19 Jun 2009 22:33:03 +0000

81-E Ashley Ave. Charleston, SC 29403

Price: $148,900

Bedrooms: 1 Bath: 1 Sq. Footage: 543 Built: 1850

Description:

SHORT SALE & MAJOR PRICE REDUCTION! PRICED EXTREMELY BELOW VALUE! This condo is located minutes to the marina and connector. You can enjoy jogging around colonial lake or walking to all the wonderful restaurants, night life and Downtown activities. Why pay for a parking spot when your condo offers off-street parking and you can walk or ride your bike to MUSC, VA or C of C. Don’t miss this chance to buy a 1 bedroom Downtown condo in the prestigious Harleston Village. Investors imagine the rental demand to students and medical professionals! Please note home has been vacant for some time and was reduced 60K+. At 218K it was still priced below comps based on price per sq foot! HOA INCLUDES: flood insurance, exterior insurance, pest control, annual termite bond, water and more. This is an attempted short sale so it’s contingent on 3rd party approval.

Contact the Fred Holland Team for more information regarding this listing and more. josh@fredhollandrealty.com or 843-343-1307. Or visit our website at www.fredhollandrealty.com

Featured Property in Charleston, South Carolina

Joshua Brandner — Sun, 14 Jun 2009 18:56:47 +0000

LaJuan and I have 30+ listings in several counties, price ranges and styles. We will be featuring one of our listings every 3 days. Please check back often to see what the next featured property is!

106-3J W. Arctic Ave. Folly Beach, SC 29439

Price: $499,000

Bedrooms: 3 Bath:3 Sq. Footage: 1385 Built: 2004

Description:

BEST PRICED UNIT IN PAVILION WATCH! Beautiful top floor unit with BUILDING 3 UPGRADES and a newly renovated Master Bath. Enjoy the Views of Ocean and Folly Fishing pier. This condo has easy access to the beach. This gated community amenities include two elevators, pool and clay tennis court. This fantastic pricing includes all furnishings including new LCD HDTV’S. 9 foot ceilings and crown molding set off the living area. There is off-street parking and plenty of room to relax on the covered patio overlooking the Atlantic Ocean. Could be an income producing vacation rental.

Contact the Fred Holland Team with questions or to request more information! (843) 343-1307 or josh@fredhollandrealty.com