When relocating to a new town within the same state involves slightly less planning. That’s not to say it’s easy. Just that an inner state move usually only involves a period of adjustment to settle into schools, navigate to the local grocery store, and the best local contractors who are the trustworthy and can tackle things when your new house needs some work. Many things will already be familiar to you. In the end, from one neighborhood to another or even from one side of a state to the other there are adjustments but they are minor.

An interstate relocation, on the other hand, is much more of a challenge. Considerable research is required to choose the state, city, town and area that will best suit your family’s needs. When you have lived in the same town for many years it’s natural to accumulate memberships and licensure. An interstate move necessitates reapplication for these: driver’s license, voter registration, updating insurance, teaching license, real estate license, gym membership, and library card to name a few of the more common ones.

And we haven’t even touched on the very move itself, which can be consuming. Let’s see there’s packing, kids, moving companies, schedules, travel plans, cancelling utilities, arrangements for pets, etc. With all this going on it’s no wonder why so many arrive to their new home in a new state and land in a “state of confusion.” In an effort to alleviate some of the stress many experts recommend compiling information that you will need in order to take care of many of life’s details before you move. Place a hard copy of everything in a folder.

Here’s a list of some things you may need:

• Address and hours of the local Department of Motor Vehicles
• Name and phone number of all utility companies
• Name and phone number of phone service provider
• Name, phone number and website of cable and internet provider
• Name, address and directions to an Urgent Care Facility
• Registration information for appropriate schools
• Name and phone number of Real Estate Agent

As wonderful as technology may be. Don’t rely on your smartphone or computer to store information. When you need critical information at your fingertips is the most likely time that technology will fail you – be ready! The more items you handle or gather information on before your move, the less stressed you will be upon arrival.

As a prospective home buyer you may fall into the trap of focusing too much on a home’s sale price. What you may not realize are the other considerations that can also have a major impact on you financially, which can make life more difficult after a purchase.

To avoid this problem, consider the effect other factors may have on your buying power. According to MSNBC, paying off outstanding loans and reducing debt before beginning the process of searching for a new home can significantly impact whether you , as a home buyer, can qualify for a loan and what interest rate you will get. For couples, be sure to check both credit scores, and if needed, take steps to increase your credit rating six to twelve months before you start the home search process.

Cost of a home may be more than money

Mortgages themselves commonly involve additional costs many home buyers forget to account for, such as mortgage insurance. As a general rule of thumb, in order to avoid this fee you will need a minimum 20% down payment on the home. On a modest $100k home, that would be $20k and it does not take into account the many other fees associated with a mortgage loan.

Property size, location and condition are also important. These are among the factors which determine property taxes and maintenance expenses for the upkeep of the home. While a home in good condition may have few repair costs at first, any home is a sufficiently large and complex structure that will need general upkeep and with time something will need fixing sooner vs. later.

Focusing too much on price can also cause you to jump on a good deal just because it’s there, without determining whether the home in question suits your current needs, as well as your anticipated needs in the next three to five years. A growing family, for example, may need more space in the near future.

The opposite can also occur if you purchase a home larger than they can really use.

This larger home can feel like a great deal… that is until you factor in the cost of heating/cooling, yard maintenance, and other costs associated with the extended upkeep of your expanded square footage.

Investigation and closing

When looking at home prices, one expert told Bankrate.com that home buyers might want to consider having their agent show them homes within their specified price range but avoid knowing each individual property’s list price. Not knowing the price before seeing a home in person can help you avoid being influenced either for or against a property by the number. This will allow you to more clearly determine the positive or negative attributes of the property based on your specific needs. Once you have narrowed your choices then it would be a better time to look at the numbers.

When it comes time to negotiate and close a deal, don’t fail to take into account the closing costs and the cost of moving into a new home. According to MSNBC, this is one of the top things home buyers fail to budget for in their pre-purchase planning. Moving costs might include purchasing boxes and other supplies, renting a van, hiring movers, buying new furniture, replacing old items and limited repairs to rooms like the kitchen or bathroom. Closing costs cover administrative fees, title searches and in some cases initial homeowners’ association fees or inspection costs.

When you choose the right real estate agent to assist you with your search process, they should also work with you to provide an estimated cost of closing worksheet to help you anticipate the cash needed at closing. A good agent can be invaluable tool that is there to help each step of the way.

Negative news about the housing market may seem like it will never end. The most recent national housing data shows home prices continuing to drop as did the number of homes sold. Foreclosures remain one of the biggest factors dragging us down, and there’s also the huge number of distressed homes creating supply overflow. If you peel back the layers and really look at all the bad news, you may in fact see some compelling reasons for getting serious about buying right now. For example, home prices have dropped so low in many areas that it now makes the cost of buying a better financial deal than renting.

Crazy or Crazy Smart?
Given what is still unfolding, waiting on the sidelines to make your move after the last of the ugliness is played out seems like a pretty smart strategy. But while you’re laser focused on the idea that home prices will be lower in the coming months — which you may well be right about – the question remains how much lower are they going, and what other important home-buying factors are going to be as advantageous a two months or year from now.

If you are pondering a home purchase, you might want to make a move sooner versus later. Here are six reasons why now just might be a smart time to make your move:

1. Renting isn’t always a great deal. This is all about Econ 101: Demand for rentals the past few years has increased — a function of foreclosures and fewer existing renters making the decision to buy – and supply hasn’t kept pace as there has been little new construction since the financial crisis hit. That’s pushing up rental prices. Mark Zandi, Moody’s Analytics chief economist expects rents to increase an average of 5 percent over the next year and some economists are predicting increases in major metro areas of more than 5 percent. That’s likely going to exacerbate an already interesting trend playing out in many markets.

2. The worst of the price declines is likely over. From the market peak in 2006, the S&P/Case-Shiller index of 20 housing markets is down 32 percent. Scary, indeed. Let’s stop looking in the rear view mirror because what’s important is what comes next, not what we’ve just come through. And no one is suggesting we have an additional 30 percent to go in price declines. Many economists are predicting about another 5 percent slide in home prices. And let’s be clear, I have not heard anyone suggest roaring price gains are on the horizon either. The takeaway is that we’re potentially at an important pivot point where we’re moving from steeply falling home prices to an extended period of stabilizing prices.

3. Historically LOW Mortgage Rates. Right now the 4.5 percent interest rate on a 30-year fixed rate mortgage is amazingly cheap. Most economists predict that rates will rise through the end of the year, with some thinking the 30-year fixed-rate mortgage could be 5.5 percent by the 2012. Higher rates can affect loan eligibility by increasing the monthly mortgage payments and your ability to qualify for a loan.

4. Qualifying for a mortgage is likely to get harder, not easier. In the past 18 months, massive legislative changes have affected the mortgage landscape. Anyone seeking a mortgage can expect to do more paperwork when planning to purchase or refinance a home. Borrowers are also being asked to provide even more documentation, including proof of identity and residency. Add to these the higher credit scores required before you will even be considered as an applicant.

5. Scary national statistics are especially deceptive right now. RealtyTrac reported that 28 percent of home sales in the first quarter of 2011 were foreclosures, and the average foreclosure sale price was 27 percent less than what a non-distressed home sold for. But peel back from that ominous headline statistic and there is a more nuanced story playing out that goes to the heart of the old maxim: All real estate is local. The Charleston tri-county area is not experiencing the same level of declines as most major metropolitan areas.

6. Less competition. There may be plenty people dropping by at open houses these days, but the anemic sales pace is proof that there are few serious buyers. That makes it less likely that you will wind up in a bidding war for your dream home. It also means you may have more room to negotiate with eager sellers. Waiting to dive in could mean that you find yourself in a more crowded pool of buyers. It’s just common senses that once there are clear signals of recovery, demand will pick up. So, bottom in is you may not have much time to wait or you’ll find yourself telling your friends “if only I had purchased 3 months ago – I would have scooped up a bigger house on a larger lot.”

Charleston SC Foreclosures – A Buying Guide

 Are you considering buying a Charleston bank-owned / lender owned property? These distressed properties are increasingly available in the Charleston Tri-County area and can present a terrific opportunity to purchase a home at a greatly reduced cost. However these transactions are more complex than a typical residential resale purchase and you must do your homework if you want to avoid buying the proverbial “ Money Pit” … Believe me this is no joke!

First, let’s define and categorize Foreclosures as this nomenclature is used broadly and you need to understand the differences.

Foreclosure – A legal process in which mortgaged property is sold to pay the loan of the defaulting borrower.  The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of reak property (immovable property) after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that “the lender has foreclosed its mortgage  or lien”.

Foreclosed Auction Homes – Homes offered for sale at the Courthouse will be sold to the highest bidder provided minimum requirements are met. The three Tri-county Counties; Berkeley, Charleston and Dorchester have set foreclosure auction dates and provide a list of properties in advance that will be available for sale. Frequently the bank acquires the property due to lack of bidders or bid amounts that do not meet their minimum purchase requirement which typically is the amount of the existing mortgage plus a minimal fee. These purchases can offer the best opportunity for Charleston area home buyers to acquire a property at a bargain price, however they also present the most risk.

Disadvantages of Courthouse Auction Purchases

1. Most buyers do not have an opportunity to inspect the home in advance of the sale. Imagine your surprise when you open the door only to find the walls covered in toxic mold because the utilities have been disconnected for months… or you go to update the bathroom and under the floor are colonies of termites that have eaten through entire sections of structural beams.
2. Buyers frequently must contend with owner occupants… You now own a home that has unwanted guests… Are you prepared to evict owners or tenants? Are you prepared to contend with the damage that may occur to your asset?
3. Title issues … How many liens are secured by this property? I RECOMMEND THAT YOU DO NOT PURCHASE AN AUCTION PROPERTY WITHOUT AN INDEPENDENT TITLE SEARCH WELL IN ADVANCE… Unpleasant surprises could include unpaid taxes, mechanics liens, HOA dues or other liabilities.
4. Earnest money requirement is typically 5% and is due in certified funds by 4:00 pm on the day of the foreclosure sale. The balance of the successful bid price is due 20 – 30 days following the sale date; most often 30 days. EARNEST MONEY IS NON-REFUNDABLE.
5. There are no contingencies accepted based on financing so you must be confident of your ability to secure a mortgage.

Charleston County* – Master in Equity – Monthly Foreclosure Sale – 1st and 3rd Tuesday at 11am, Charleston County Judicial Center, 100 Broad Street, Charleston, SC

Berkeley County*  – Master in Equity -Monthly Foreclosure Sales – 1st Wednesday at 11am, Berkeley County Courthouse, 300-B California Avenue, Moncks Corner, SC

Dorcester County* – Master in Equity – Monthly Foreclosure Sale – 1st Tuesday at 11am, Dorchester County Courthouse, 5200 East Jim Bilton Blvd., St.George, SC 29477

* These dates may change in accordance with the courthouse schedule, please verify on the appropriate county website for accuracy.

For many people, finding a new home is more than a matter of personal taste and individual finance – it’s a family affair. I’ve bought a house as a young single professional, with a child, and then again with my three children which was certainly a different experience. For those buying a new home to accommodate a growing family, it is an exciting step in one’s life, but it can also be a balancing act.

A recent survey released by Coldwell Banker Real Estate found that 65 percent of homeowners who are also parents purchased their first home before becoming pregnant or within one year of their child’s birth. Wow, that’s a lot going on in a person’s life at one time, but it makes sense. It isn’t until you have a child that you realize just how much space this tiny, little person takes up so that apartment or condo you bought won’t cut it with a munchkin crawling around.

For those consumers who are in a position like this, Coldwell Banker has put together five tips for buying a home with a family in mind:

1. Proximity to family. Nearly half of the homeowner respondents in a recent survey from Coldwell Banker reported that they live less than 10 minutes from extended family members, with 72 percent choosing to live within 30 minutes. Buying a home that is close to family members can provide support, help and guidance that can be a great benefit both emotionally and financially. With extended family nearby, families have the opportunity to spend more time together and even save money on occasion. The cost of babysitters and long distance travel to visit relatives can really add up!
2. Existing floor plan. Each family has its own unique dynamic and should take its distinctive needs into consideration when exploring different floor plans. While having a master bedroom upstairs and the other rooms downstairs may work for some families, others may prefer to have all of the bedrooms on the same level.
3. Surrounding neighborhood. The neighborhood looks different from the eyes of a parent. It’s wise to get an idea of what the neighborhood offers for children, such as local recreational centers, parks or playgrounds as well as the school system, before deciding on an area to live.
4. Future lifestyle needs. They say children grow up in the blink of an eye, and while you don’t believe at first, it’s absolutely true. Make sure the home you purchase leaves growing room and will still fit your family’s needs a few years down the road, especially if there are plans for more children.
5. Budget. One of the most important things for all potential homeowners to consider is their personal budget. Growing a family and having children usually means a growing list of expenses as well. Estimate monthly expenses along with a mortgage payment to ensure all financial commitments can be reasonably met.

May 10, 2011 – According to preliminary data released by the Charleston Trident Association of REALTORS® (CTAR) 776 homes sold at a median price of $175,000 in April, which reflects an even pace of buying activity and a 3% reduction in median price when compared to April 2010, when 784 homes sold at a median price of $180,174.

“More than 2,600 homes have changed hands this year and we continue to outpace 2010 sales volume by about 8%” said 2011 CTAR President Rob Woodul.  “At this time last year, 2,400 homes had sold in the Lowcountry—sales that were being stimulated by the appeal of the Homebuyer tax credit” said Woodul.

The homebuyer tax credit required a contract to be in place by April 30, 2010, which resulted in a significant uptick in closed sales throughout the late spring and early summer season of 2010. “Over the next few months, we will see a clearer picture of how our market is responding to a non-incentivized buying environment” said Woodul. While the region’s median sales price continues to reflect the impact of distressed inventory, Woodul said “we are encouraged by the stability of our sales volume.  Once we work through the surplus of distressed property, prices will slowly recover—it’s not going to happen overnight, but it will happen eventually”.

There were 8,899 homes listed as actively for sale with the Charleston Trident Multiple Listing Service as of April 30, 2011. 

March Adjustment
Preliminary numbers reported for March 2011 indicated 824 homes sold at a median price of $176,825. Adjusted numbers now show 850 sales at a median price of $177,495.

BERKELEY COUNTY
170 homes sold at a median price of $145,000 in April. This data reflects a decrease in both sales and prices when compared to April 2010’s 199 sales at a median price of $159,900. 

The area with the highest sales volume is located near Highway 17A and College Park Road, where 45 homes changed hands.  Daniel Island logged the County’s highest median sale price at $405,000, while the County’s most affordable area is Goose Creek/Moncks Corner bordered by Highway 52 and the Cooper River, with a median sale price of $92,000.

CHARLESTON COUNTY
451 homes sold at a median price of $208,000 in Charleston County in April.  This reflects an increase in sales and a decrease in prices when compared to April 2010’s 404 sales at a median price of $233,200.

The most active area of Charleston County was Mount Pleasant, where 121 homes sold. Kiawah and Seabrook Islands had the highest median price at $675,000 while the most affordable area of the County is in North Charleston (inside of I-526) where the median price is $75,000.

DORCHESTER COUNTY
129 homes sold at a median price of $147,490 in Dorchester County.  This reflects a decrease in both sales and prices when compared to April 2010’s 157 sales at a median price of $152,900.

The highest sales volume in occurred in the Summerville/Ridgeville area of Dorchester County, where 61 homes changed hands—this was also the County’s most affordable area, with a median price of $127,950.  The area of North Charleston bordered by Summerville and Ladson recorded the County’s highest median price at $178,750. 

Information provided by Charleston Trident Association of Realtors

As a first time home buyer, the best place to start is at the very beginning.  The National Association of Realtors recommends one of the best ways to make the home buying process flow easier and that is by becoming better-acquainted with your options and taking the time to clearly define your goals. Understanding the reasons you want to buy—and what you want to accomplish in your move.  These steps will go a long way towards shaping your plans and improving your results.   

Perhaps the most important first step involves deciding how you will approach your home search. Who will you work with throughout this process, and how will you work with them?

Hire A Buyer’s Agent

I would highly recommend using a buyer’s agent. In South Carolina, you can find yourself working with someone who is actually negotiating for the seller, not you the buyer.  The best way to be certain your interests are being considered and protected is to sign a buyer agency agreement with a trained buyer’s representative.  This agency agreement clearly establishes the client-level services you can expect and depend upon. A buyer’s agent is required by law to work as a fiduciary to you, the buyer.  As such, your buyer’s agent will work for you and have your best interest in mind.  If you choose the right buyer’s agent, you will get far more service than you can expect from a non-agent who is showing you homes or property.

You can expect:

• Confidentiality – your buyer’s agent cannot disclose information about you or your financial situation to the sellers, the seller’s agent, or anyone else.
• Understanding of your specific needs and wants to locate appropriate properties.
• Exposure to more choices. Your buyer’s agent will search out properties that others might not even know are available.
• Immediate notification of new properties on the market.
• Help with negotiations. There is no “crystal ball” to tell us what the other party to a transaction will decide, but an experienced real estate negotiator will provide price counseling based on comparable properties and their professional insights.
• Provide a list of potential qualified vendors (such as inspectors, attorneys, lenders, etc.) for other services that will be needed during the home buying process.

In short, when you have a good buyer’s agent you have a valuable ally on your team.

What is the cost of hiring a buyer’s agent?  For you the buyer, it is typically – NOTHING!  Every agent has the ability to set their own prices and you will find a few who will charge a fee to the buyer for their services, but typically you don’t have to pay for services when you hire a buyer’s agent. When you purchase a home listed with a real estate agent, the commission has been negotiated by the seller’s agent and added into the purchase price. The seller is then responsible for the commission to both a buyer’s agent and their seller’s agent.