Living in Harleston Village in Charleston, SC
About Harleston Village Living in Harleston Village seems to be just about perfect for those Charleston residents you ask, but there's a lot more to this quaint area than meets the eye. John Harleston inherited the land that's now known as Harleston Village back in the late 1600s. The area was kept as a large tract of land for well over a hundred years until streets were added in 1770 and officially became known as Harleston Village. The Harleston family was known to be active in local politics and also bred horses as a pastime. Even though the area began its growth with the addition of roads, additional homes didn't show up for around another 100 years. These days, this cozy area is known by locals as a place to get away from the crush of tourists. Here you can steal away onto the side streets for a bite to eat or do some shopping at any one of the many corner shops lining the streets. Bordered by MUSC, College of Charleston, Charleston Harbor, and Broad Street this tree and the sidewalk-lined neighborhood is a prime downtown location in the peninsula area of historic downtown Charleston. The area is very bike, dog and pedestrian-friendly, so it holds one of the highest walkability ratings in the area. The high walkability rating is a trade-off for its lack of street parking, however. Colonial Lake, which is located at the heart of the neighborhood offers a relaxing space to walk or sit by the water. Residents in this neighborhood can easily walk to the local businesses, medical offices, dining, and school to attend the College of Charleston located within its borders. Schools Harleston Village is zoned for the Charleston public schools system, but there are also great private schools nearby. Higher education options include the College of Charleston and MUSC or the Medical University of the South. Charleston Day School A K-8th grade private school located on Archdale Street, this school was founded in 1937. The school serves around 255 students and keeps a 15 to 1 student-to-teacher ratio. Mason Preparatory School Mason is another K-8th private school with a 10 to 1 student-to-teacher ratio serving 305 students. 68% of the faculty hold advanced degrees and their focus is on "...education of the whole child" to prepare the students for secondary education. Memminger Elementary School The "Mighty Mariners" of Memminger participate in a unique learning environment that focuses on three initiatives: the International Baccalaureate Program, Social Emotional Learning, and Personalized Learning. Allegro Charter School of Music This charter school focuses on producing inspired thinkers and creative members of society through the study and performance of music. Students in grades 6-12 are prepared for creative work using music and strong academic programs. Simmons Pinckney Middle School This public middle school serves 264 students in grades 6-8 offering around a 16 to 1 student/teacher ratio. Burke High School This public high school offers a core curriculum to its students as well as CTE programs such as building construction, culinary arts, digital art & design, health science, and engineering. Dual credit, advanced placement, and college preparatory courses are also offered. Dining Harleston Village enjoys many dining establishments within walking distance from your doorstep in the neighborhood. Here are a few of my favorites: La Farfalle Amazing Italian fare is located on Beaufain Street with a lovely little courtyard. photo courtesy: Queen Street Grocery Queen Street Grocery Open 7 days a week and offering crepes, sandwiches, salad, local craft beer, and more, this Queen Street mainstay has been a presence in one form or another for a hundred years. A great place to put together a picnic to take to Colonial Lake! Basic Kitchen Basic Kitchen is anything but basic... other than basically wanting you to stuff your face with the delicious menu items they prepare with local produce and inventive preparations. Outdoors Due to its proximity to Charleston Harbor, residents have 24/7 to one of the most famous waterways on the east coast for fishing, boating, paddle boarding, and more. For serious boaters, the nearby marina offers a location for your watercraft. Additionally, Colonial Lake Park offers an idyllic setting for jogging, biking, or a leisurely stroll and the adjacent Moultrie Playground has public tennis courts and other attractions. Amenities and HOA Fees There are no HOA fees associated with living in Harleston Village as the neighborhood is considered a public space of the downtown Charleston area. Thinking of buying a home in Harleston Village? If you're curious about living in this amazing neighborhood, check out the available homes for sale in Harleston Village. Take a look at other homes for sale close by, too: Ansonborough homes for sale French Quarter homes for sale Wagener Terrace homes for sale Ashley Melton, Realtor® | 843-670-2333 | Ashley.Melton@AgentOwned.com | www.CharlestonPalmettoHomes.com
Mount Pleasant SC Home for Sale $355,000
Just Listed condo for sale located in Madison of Park West in Mt. Pleasant, SC 2 Bedrooms | 2 Bathrooms | 1317 Square Feet | $355,000 Condo for sale in one of Mount Pleasant's best communities of Park West. Nicely upgraded condo on 2nd floor with Garage in a gated community. Tons of natural light, open floorplan, just painted, hardwoods throughout the main living area. The kitchen has granite counters, a breakfast bar, stainless appliances, and a tile floor. You will have plenty of room for your kitchen table and chairs. Both bedrooms are a good size, both with walk-in closets and ceiling fans. A nice covered porch overlooks the pool. 1 car garage is included. The neighborhood offers nice amenities including a clubhouse, workout facility, pool, and tennis court. Park West Rec Center is located across the street. Close to beaches, shopping, restaurants, and more. Listing Details for 1300 Park West Blvd 120 Area: 41 - Mt Pleasant N of IOP Connector Subdivision: Madison Subsection of Park West
James Island SC Home For Sale $455,000
Just Listed home located in Seaside Plantation on James Island, SC 3 Bedrooms | 2 Bathrooms | 1,371 Square Feet | $455,000 Come live in one of James Island's most sought-after communities of Seaside Plantation when you choose this move-in ready home located on Lakefront Drive. Freshly painted with new floors throughout, this single-story home features a great room with cathedral ceiling, eat-in kitchen, stainless steel appliances, well-appointed master bedroom, screened porch, patio and private fenced-in backyard! See all the details at the link, schedule a showing or tag a friend in the comments! More Details about 1236 Lakefront Drive Area: 21 - James Island Subdivision: Seaside Plantation
Living in Hamlin Plantation of Mount Pleasant, SC
About Hamlin Plantation Tucked away among tidal creeks and marshlands, the desirable neighborhood of Hamlin Plantation is a fantastic Mount Pleasant subdivision comprised of four distinct areas: The Sound, Waverly, The Village, and Madison. Conveniently located off Rifle Range Road and Highway 17, the area is just a 15-minute drive to Isle of Palms or Sullivans Island, minutes to the center of Mount Pleasant, and 20 minutes from Downtown Charleston. But while this master-planned community is designed to provide natural beauty and privacy to its residents, its design also cleverly keeps everyone connected. For example, this charming neighborhood has a park within walking distance of its sidewalk-lined streets from any home in the neighborhood. The Sound The Sound features custom-built single-family homes in the only waterfront section of this development. These 3000-plus square foot homes offer expansive views of Hamlin Sound, Isle of Palms, and Goat Island and several homes offer deep water access. Waverly Waverly features homes of around 2200 to 2800 square feet within an intimate neighborhood featuring plenty of water and green space. The Village The Village features 3-5 bedroom homes along curved streets and naturally landscaped yards. Madison Madison features both single-family homes and townhomes. Schools Some of Mount Pleasant's best public schools are attended by the children of Hamlin Plantation, Jennie Moore Elementary, and Laing Middle school, while high school age students are zoned for Wando High School which is one of the top schools in South Carolina. Many private school options are also available within close proximity to the neighborhood. Amenities and HOA Fees The amenities available at Hamlin Plantation are extensive enough to give a resort-style feel to the neighborhoods and are some of the nicest in Mount Pleasant. Active families have access to nature-filled walks or biking along its miles of walkways. The fitness center features tennis courts, basketball courts, and swimming in the Olympic size pool. Outdoor enthusiasts will love the fishing, crabbing, boating, and kayaking being situated along Hamlin Sound. An amazing plantation-style clubhouse hosts year-round events that help to keep the neighborhood connected and along with its playground, boat storage, and more, the $1000 per year HOA fee is a worthwhile expense. You can read more about it on the Hamlin Plantation POA page Are you thinking of buying a home in Hamlin Plantation? The homes in this development range from townhomes to luxury custom-built single-family homes. With the townhomes starting at $318k and the single-family homes ranging up to $1.5 million, there are choices between just about every price point and feature here. Whether you're looking for a first home or a place to grow with your family in a neighborhood with sidewalks, Hamlin Plantation in South Carolina has what you need. View all homes for sale in Hamlin Plantation See other homes for sale in Mount Pleasant Dunes West Charleston National Park West
What Does Contingent Mean on a Home For Sale
In this post, we'll define what contingent means on a home for sale, show a few examples of how contingencies on homes are used, and provide advice for submitting an offer on a contingent home. What does contingent mean? Merriam-Webster defines "Contingent" as: "Dependent on or conditioned by something else." which is accurate, but it also defines it as, "likely but not certain to happen." which is also true - especially in real estate. A home listed as contingent means an offer has been made and accepted, but for the deal to move forward, certain conditions must be met. These contingencies are written into the purchase agreement or sales contract. If one or more of the conditions aren't met within a certain timeframe, the sale of the home could be in jeopardy. These contingencies aren't uncommon and typically fall within a few categories which we'll go over in the next section. photo by Tierra Mallorca What are some common contingencies? Home Inspection Contingency The home inspection contingency is put in place to ensure that the home is in acceptable condition. During the inspection, the home inspector assesses the home for all the aspects of the home from leaky faucets to cracks in the foundation. If the inspection uncovers serious issues with the home, the buyer and seller will either negotiate who pays to address the issues, ask for financial credits or the buyer may back out of the deal. It's not advisable to waive this contingency as it could result in significant expenses for the buyer later on. However, if you do decide to waive this, having a professional inspection anyway is a good idea. Financing Contingency A financing contingency, also known as a mortgage contingency is put in place mainly to protect the buyer in the event they're unable to secure financing within a certain timeframe. Of course, if you've read any of my blog posts about mortgage loans, you'll know that you should get pre-approval before beginning your home search. Not only does it put you that much closer to securing your mortgage, but it sets your budget and makes any offer you submit stronger. However, things can still happen after you've been pre-approved that could cause changes in your loan eligibility. Many a transaction has screeched to a halt after it's discovered that buyers have taken out a loan, purchased new furniture for the home on credit, or changed jobs - all of which change the buyer's financial situation in the eyes of the mortgage lender. This contingency allows the buyer the option of time to secure different financing or walk away from the deal without losing their deposit if they're unable to secure a mortgage. In a competitive real estate market, it may be tempting to waive this contingency to get the upper hand in a bidding war. But doing so means if the buyer is denied the loan, they can lose their deposit. Appraisal Contingency A home buyer's mortgage lender will always require a home appraisal as part of the loan approval process. While the seller may be asking for a specific amount for their home, and it seems reasonable based on the market and the values of other homes in the area, the lender is only going to loan an amount that the home appraises for. So, while making sure the home appraises as high as possible is another story altogether, the buyer can protect themselves from this issue with an appraisal contingency. With an appraisal contingency, the buyer has the option to negotiate for a lower price on the home or opt out of the contract altogether if the appraisal comes in lower than the agreed-upon purchase price. But it also gives you time, to negotiate. As the home seller, you may ask the buyer to make up the difference in cash, offer to meet them in the middle on the difference, or challenge the appraisal if you believe it used inaccurate info. In seller's markets, it can be tempting to waive an appraisal contingency to make your home offer more attractive to the seller. But, you could certainly find yourself paying more than the home is currently worth setting you up for the need to stay in your home long enough to build up your equity or take a loss if you sell the home again within a few years. Just remember that the lender will only offer a certain amount based on the appraised value, and you'll be on the hook for the rest. Title Contingency It's pretty much standard in every real estate transaction that the home in question comes with a clean title. A clean title means that the seller owns the home free and clear and there are no liens or other encumbrances on the home bringing the true owner of the home into question. Confirming this involves performing a title search which is done by a title company whose job is to make sure the seller is the only one with a legal claim to the home. Title contingencies protect the buyer should any issues with the title be revealed. If any liens or other issues are discovered, the seller is required to resolve those issues before the sale of the home can be completed or the buyer can walk away from the deal. photo by Thirdman Home Sale Contingency This states that the purchase of a home is contingent on the buyer being able to sell their home first. It's also quite common for the seller to reject this contingency, especially in a seller's market because there's most likely a list of backup offers that may be able to close quickly without this contingency in place or will to waive it altogether. One way home buyers can avoid the need for this is to use a lender that can provide a bridge loan or other methods of securing the funds to avoid the contingency, but these alternative methods could be very risky and I don’t recommend them. Buyers can also request a later closing date than typical allowing you more time to sell your home. Most of the time, however, this will be rejected as well UNLESS the seller is also trying to find a home or they're not in a rush to move in the case of a family who wants to wait until the end of the school year. In most situations, though a home sale contingency never favors the seller so it will be difficult to keep this in place. If a seller accepts this, they lose most of the control in the transaction relying on the buyer to make good decisions on the listing and pricing of their home to sell it quickly. Being in that sort of limbo will turn most sellers off of the deal. Types of contingent statuses Contingent with Kick-Out One way for the seller to maintain control of the sale of their home with a home sale contingency is to include what's called a "Kick-Out" clause in their agreement. "Contingent with Kick-Out" means that the seller will accept the buyer's offer with a home sale contingency but will continue to accept backup offers. If the seller receives a better offer without a home sale contingency, the seller can "Kick Out" the current buyer from their purchase agreement if they're unable or unwilling to waive their home sale contingency or make a better counter offer. Homebuyers need to remember that the seller can't simply cancel their current agreement with you using this tactic. They're required to inform you of a better offer and allow you the opportunity (usually a 48-hour window) to meet or beat it. Contingent with No Kick-Out The most common contingent status is "Contingent with No Kick-Out" which prevents sellers from accepting other offers while the current contingencies are negotiated. Even if the seller is frustrated with the negotiation process and wants to move on, they can't until all efforts to compromise are exhausted. Contingent Continue to Show If your real estate agent sees a listing that's designated, "Contingent-Continue to Show", this means the seller has an accepted offer but the buyer has included multiple contingencies in the purchase contract that need to be addressed. And while that happens, the seller is allowing the home to continue being shown and hoping to receive backup offers. While for the current buyer, you could certainly take this as a sign that your offer is on shaky ground - for other potential buyers, it means it could be worth submitting an offer. That is of course if your offer contains fewer contingencies than the current offer. Contingent No Show Once they've accepted an offer, most sellers don't want the hassle of continuing to show their home while under contract. "Contingent - No Show" is a pretty good sign the home is as good as sold and it would be unlikely that trying to submit an offer would be productive. Short Sale Contingent The term, "Short Sale" is a bit of a sneaky term because short sales are never very short... But, to be clear, a short sale occurs when the lender is willing to accept less than what's still owed on the mortgage for the home. "Short Sale Contingent" means an offer has been accepted but the seller and their agent are continuing to accept backup offers in case the current one happens to fall through. And unless the current buyer can't meet their contingencies, the sale will likely go through. So, while you could certainly submit an offer, there's no guarantee it will be accepted and you'll likely end up waiting a substantial amount of time to find out either way. Can you still make an offer on a contingent house? The short answer to this is, yes, you can still make an offer on a contingent home. No matter what contingent status the home is in, your offer would become a backup offer and would be subject to the outcome of the current buyer/seller agreement. photo by Scott Graham Tip for submitting an offer on a contingent listing Usually, you'll have a much higher chance of success submitting an initial offer on a home listed as "Active", meaning there are currently no accepted offers and all offers are being considered. However, if FOMO or "Fear of Missing Out" is hot on your tail and you'd rather say you gave it your best shot than none at all, here's my suggestion for submitting an offer. First and foremost, you must be working with an experienced real estate agent or Realtor®, not only will they be able to provide their guidance on submitting a backup offer. But, they may have a good working relationship with the seller's agent who can provide them with important information about the current offer to consider when putting together yours. What's the difference between contingent and pending? As I mentioned at the beginning of the post, "Contingent" means the property is under contract but the purchase agreement contains contingencies that need to be met before moving forward before finalizing the sale. "Pending" means all contingencies have been removed or there were never any in the initial offer and the buyer and seller are moving forward to closing. A pending listing is also no longer considered an active listing and offers are no longer being accepted. How often do contingent offers fall through? While I can't give a percentage, many contingencies may not be met. Home inspection and financing contingencies are the biggest issues I typically see in real estate transactions. photo by Scott Graham The Bottom Line Whether you find yourself in a buyer's market or a seller's market, contingencies will always play a factor in the sale of a home. Understanding what each means is important for the buyer and the seller to make informed decisions during their roles in the real estate transaction. For the buyer, contingencies are there to protect your best interests and to help you. They can also hinder your chances if you're inflexible. For the seller, contingencies can delay the process and potentially cause stress. However, they may be a necessary evil to make the sale happen. Either way, your real estate agent should be able to advise you on the best steps to take to ensure the process is as smooth and stress-free as possible. If you're thinking about buying, download my free Dream Home Handbook to help with your home search! Ashley Melton, Realtor® | 843-670-2333 | Ashley.Melton@AgentOwned.com
What is The Final Walk-Through of a House Before Closing?
Taking a final walk-through of your soon-to-be new home is the last thing you'll do before signing your papers and getting the keys on the day of closing. Most final walk-throughs are pretty quick, but that doesn't mean you should breeze through yours or skip it altogether. Read on to learn all about the process. What happens during the final walk-through? photo by Rodnae Productions The final walk-through of the home you're about to purchase is the last opportunity you have to ensure that the home is in the same state or better than the last time you were there. This is your opportunity to make sure the requested repairs have been completed, all the agreed-upon items that are supposed to convey are still present, all systems and appliances function, and that no new repairs or maintenance needs have occurred since the home was inspected. We all want the final walk-through to go off without a hitch, but the reality is - things do happen during the move-out or while the house sits empty. So, this is the last chance you have to go room-by-room with your real estate agent before you take ownership of the home. Why do you need to do a final walk-through as a buyer? While not a requirement by law, the final walkthrough of the home is one of the most important parts of the entire home closing process. This step is your final confirmation that you'll be taking ownership of the home in the condition and terms you agreed upon with your accepted contract. Who attends the final walk-through of the home? photo by Rodnae Productions Unless otherwise requested, the buyer and the buyer's real estate agent are the only people that attend the final walk-through of the home. In the rare case that the seller is requested to attend or they haven't completed their move-out, yet - the seller's agent should also be present. The buyer's agent will be able to point out any areas you may miss during the walk-through and provide guidance if any issues arise. How long does the final walk-through usually take? This depends on two things: The size of the house and the buyer's discretion. While there's no set amount of time you're obligated to take, it's important to remember that this will be the last chance you have to address any issues with the home before it becomes your sole responsibility. Whether it takes 20 minutes or more take your time and go room-by-room so there are no surprises down the road. What does the term "Broom Swept" condition mean? This term will often be used in the sales contract referring to how the seller is obligated to leave the home before ownership changes. Broom swept or broom clean simply means that the home should be completely cleaned out with surfaces wiped down, personal belongings and trash removed, and carpets vacuumed. Unless otherwise negotiated, the home will not be given a deep clean by professional cleaners. What happens if there are issues with the home during the final walk-through? photo by Mart Production For my clients, by the time they do their final walk-through, I've ensured that all the requested repairs have been made and that the items the seller agreed to leave are present according to the purchase contract. However, issues that come up during the final home walk-through are rare but do occur. If you happen to encounter an issue, it's important to be aware of what your options are before closing. If something you notice can't be quickly solved while you're at the home, there are a few things you can do: The first thing to do is to communicate your concerns with your real estate agent. They'll be able to speak directly with the seller's agent and explain the issue. Let the agents do their job to work things out appropriately. For minor issues, you can ask the seller to fix them before closing or negotiate appropriate compensation from the seller to take care of the issues yourself. This could mean withholding the seller's proceeds in an escrow account or being provided credit toward closing costs. You can delay the closing while the seller addresses the issues. In extreme cases in which major issues are discovered whether extensive damage or expensive repairs are needed, you may need to back out of the deal or take legal action if the seller refuses to address the concerns. Conclusion photo by Rodnae Productions There's a lot of excitement and nerves before the final walk-through when buying a home and you should certainly be excited! But the final walk-through is your last chance to ensure the house is exactly what you expected before being handed the keys at closing. So, don't rush through and let things slide. For any concerns you have during the walk-through, make sure to discuss them with your real estate agent to understand what your options are. It's the next to last step in the closing process and as long as you're thorough, go ahead and get excited! Start imagining where the furniture's going and when the housewarming party is! Ashley Melton, Realtor® | 843-670-2333 | Ashley.Melton@AgentOwned.com
The Top 10 Questions About Home Selling To Ask a Realtor
Selling your house seems like a daunting task. If you're considering selling your house in the next year, bookmark these 10 questions to ask before you do anything else. And read until the end for the strangest question I’ve been asked about selling a home. photo by Mikhail Nilov 10. What Should I Disclose to Potential Buyers? Before you even sell your home, it's a good idea to address any issues you're aware of. If you know of damage to the roof, broken tiles, etc. you can make sure they're repaired before listing the home or, at the very least, be upfront about anything you know of to avoid potential problems when you're under contract and even potential lawsuits. You could take things a step further and get a pre-listing home inspection but it's not necessary. South Carolina has a property disclosure form, and though the agent can't complete this for you, they can assist if a seller is uncertain about what to disclose. photo by Samson Katt 9. Can I determine how much my home is worth from an internet website? The short answer is, no. Third-party real estate sites like Zillow and Trulia aren't local to every real estate market so they rely on formulas and algorithms to generate home values. This means they're not as accurate as a Realtor who pulls information from the MLS, and tax records and creates a comparative market analysis based on location and home condition. Can you use one of these sites when researching? Sure, but do so with the understanding that they're not accurate and the estimates could be off by a little - or a lot. 8. Should I price my home higher to leave room for negotiations? This is a common question from sellers, and it's an approach that causes friction between family members when deciding on the list price of their homes. I've worked with sellers wanting to price homes $20,000 and in some cases higher than my suggestion in the hopes that they can capture the best price during negotiations. The real answer is that homes should always be priced to sell. Whether you're selling your home in a buyer's market or a seller's market, a home listed within an appropriate price range will create the most interest and eventually sell close to the listing price. In this market, we aren't seeing a need for "room to negotiate" so pricing your home attractively is leading to multiple offer situations and above list price as well. 7. How will you market my home? A well-rounded, comprehensive marketing plan to sell your home should be expected from any qualified Realtor you speak with. While traditional efforts should still be used such as a sign in the yard. Gone are the days of an ad in a real estate magazine and a postcard in the mail and that's it. With over 90% of home buyers starting their home search online, it's important that your Realtor has an active presence online, a high-quality website, a blog with helpful content, and they employ targeted social media ads so you know your listing is getting the maximum exposure. 6. How will we communicate? Your Realtor should always ask what your preferred method of communication is, whether it's phone, email, or text. I always let the clients decide what the best way to communicate is. If I have a lot of important stuff to say, I usually email and we can follow up with a phone call if further clarification is needed. Another important bit of information to ask about is whether or not the agent has a system in place to provide feedback after a showing. 5. How will you vet the buyer? The rate of success when selling a home goes up exponentially when you work with a Realtor that's skilled at vetting the buyer. Vetting a buyer starts with a pre-approval letter and a strong offer. In addition to the purchase price, how much is the buyer putting down? Are they asking for closing costs? What kind of earnest money are they offering? All of these answers give us an idea of the buyer's financial situation. Prior to ratifying the contract, a call to the lender is important to make sure they've gone further than just a simple credit pull. photo by La Miko 4. What do I need to do to get my house ready to sell? When it comes to getting your home ready to list, I make it really easy for my sellers: • Is it dirty? Clean It. • Is it a rat’s nest? Declutter it. • Is it smelly? Freshen it. • Is it messy? Organize it. • Is it broken? Fix it. Of course, there's a little more to it in order to get your home ready to sell, but if you follow those rules you'll be in far better shape than most sellers. 3. Should I invest in upgrades? Sellers have a big advantage in the current real estate market. Home inventory is low and buyer demand is high. This has caused homes to go under contract in a matter of hours instead of days. In addition, home sellers are fielding multiple offers often above the original asking price. With that said, it seems like the real question about upgrades should be, "Why bother" right? Well, regardless of what type of housing market you find yourself in, you're always going to be looking to get the most return on the sale of your home. So, it's a good idea to make as many repairs to the home as you're comfortable with and improve the curb appeal to put the home in its best light. In a seller's market, homebuyers tend to think more in terms of the home's potential, than its shortcomings. 2. What are buyers looking for? Any deal-breakers? The answer to this is different for each type of buyer. Some may want a particular school district, while some want a one-story home. Some need the master bedroom on the first floor, while some don't want to deal with the upkeep of a large yard. Some may want a pool while for some a pool is a deal-breaker. Your Realtor should "Interview" you to understand your thoughts on what makes your home special. And, they should also use their experience and intuition to know what other features of your home are highly marketable. Whether those features appeal to a small segment of buyers or a large one, they should be able to position your home in the most appealing light that garners the most attention. photo by Alena Darmel 1. When should I list my house? There will always be the age-old advice that listing your home in the spring is the best time to sell in order to guarantee a quick sale for the best price. And while the numbers don't lie that spring is traditionally the prime season for home sales, when someone has future plans involving a home, they may wonder if they should sell now or wait until closer to the time. An example: I have a client that's moving out of state and plans to purchase new construction in their new location. If the home won't be ready until the end of the year, what are their options? They could sell now and move into a short-term rental out of state. They could sell now and negotiate a rent back from the buyer. They could wait until the new home is closer to completion. These examples support my belief that the best time to list your home is whatever works best for you in your current situation. BONUS: The STRANGEST question I've ever been asked by a seller is...? A seller once asked me if it was also my job to help them pack once I sold their home! Unfortunately, the answer to that question is no. Conclusion Asking questions as a home seller is not only a good idea, it's imperative in order to have all the information you need before beginning the process of getting your home ready, listed, and sold. The more information you have about the home selling process, the fewer problems you'll have leading up to closing and the better your decisions will be about any issues that do come up. For this reason, it's important to choose the best real estate agent in your area that meets, or even better, exceeds your expectations in representing you. Did I answer your home seller questions? If I missed any, please contact me and ask - I'm always happy to help. Ashley Melton, Realtor® | 843-670-2333 | Ashley.Melton@AgentOwned.com
What's The Difference Between a Closing Disclosure and a Settlement Statement?
photo by Alena Darmel Whether you're the buyer or the seller, the final part of most real estate journeys is the home closing process. And one important aspect of closing is the settlement statement... or is it the closing disclosure? These two terms can sometimes make things more confusing than they have to be, so today I'll be clearing up the confusion to help make your closing that much easier. Here's where the confusion starts. The terms "Settlement Statement" and "Closing Statement" are interchangeable. Although "Settlement" is what is typically used within real estate. These terms are used for the document provided to the home seller to help them understand their costs and payouts. In contrast, the term "Closing Disclosure" is the term used for the document that's specific to the buyer and the fees they incur. Definition of a Settlement Statement A settlement statement is an itemized list of fees and credits involved in the entire real estate transaction. This document is a detailed account of what funds like real estate agent commissions, taxes, etc. are owed by the seller. Of particular interest to the seller is the final entry of the statement which shows the net proceeds they'll receive and what the buyer owes. What's in a Settlement Statement Debits vs. Credits Your settlement statement will be organized into debits and credits in the same way your checking account statement would be. The debits are going to represent the expenses you're incurring while the credits will represent any deposits or increases to the final balance. Financial The amount the home buyer is paying for the home will be listed under the "Financial" label on the settlement statement and then any items being debited against that price will be listed. Next will be listed any personal property such as furniture or appliances the seller has agreed to sell to the buyer. These will be listed as credits to the final balance. Any repair credits or any of the buyer's closing costs the seller has agreed to pay will also be listed. The earnest money deposit minus the agent commission is the excess deposit (See explanation of "Excess Deposit" below). All remaining funds will go to either the seller or settlement agent. "Deposit including earnest money" is exactly what it says, the amount the buyer put down in good faith, including the deposit after the seller accepted the offer. The Loan Amount is how much the lender is financing toward the purchase of the home. Existing Loan(s) Assumed only applies if the buyer is taking over the seller's existing mortgage such as in the case of a VA loan transfer, etc. Prorations / Adjustments This section will list items such as the property taxes or HOA dues the seller will owe leading up to the time the keys are handed over to the new owner. Each locality may have taxes specific to their area to consider such as garbage pickup, wastewater, etc. as well as different tax schedules. If the closing date is March 10th and the seller's tax bill for January through April is due May 1st - the seller is responsible for the taxes from January through the closing date of March 10th and the buyer will be responsible for taxes from March 11th through May 1st. Likewise, a seller credit in this section indicates the amount the home buyer will owe for any prepaid taxes or payments. In South Carolina, our taxes are paid in arrears. On a settlement statement, we will see the sellers give a credit to the buyers for their portion of the year's taxes. Loan Charges to Lender Loan Charges will detail the charges from the buyer's mortgage lender. If the buyer has negotiated with the seller to pay some of these costs, that debit will also be listed here. If the buyer has made an upfront payment to lower their interest rate, they'll be listed here as mortgage points. Application Fee The application fee is charged to the buyer for processing the loan application. Origination Fee The origination fee is also charged to the buyer for preparing and evaluating the loan. Underwriting Fee This is charged to the buyer for processing the loan. Mortgage Insurance Premium Mortgage insurance is charged when the buyer puts down less than 20% on a conventional loan. Prepaid Interest Interest will accrue daily between the closing date and the buyer's first mortgage payment. This is due from the buyer at closing. Appraisal Fee Typically covered by the buyer, these are fees required by the lender to pay for the home appraisal. Credit Report Fee This is the fee for pulling the buyer's credit report during the loan process. Impounds The buyer will typically set up an impound account that bundles together the cost of their mortgage principal, interest, taxes, and mortgage insurance into one payment. Aggregate Adjustment This calculation prevents the buyer's lender from collecting more money from the buyer than allowed by RESPA (Real Estate Settlement and Procedures Act). Title Charges and Escrow Settlement Charges These are fees from the title or escrow companies for notarizing signatures or performing other required tasks. Owner’s Title Insurance This is additional coverage for the home buyer should an unknown issue concerning the title arise after closing. This coverage is recommended, but not required. Loan Policy of Title Insurance Similar to the Owner's Title Insurance, this coverage is for the lender in the event title issues arise after closing. This coverage is required by the lender. Title Search Fee This is the fee charged to search public records on the property being sold for any issues. Insurance Binder The insurance binder is proof of temporary homeowners insurance until a full policy is issued. Escrow/ Settlement fee The fee charged for completing the settlement and distributing funds to the appropriate parties. Notary Fee The fee paid for witnessing the closing document signatures by a licensed notary. Signing Fee Fees assessed for any additional notary or document signing. Commission This section refers to the commissions paid to the real estate agent(s). These fees are usually the responsibility of the seller, but the total commission amount is usually split between the listing agent and the buyer's agent. Government Recording Transfer Charges These are fees charged by the county, state, or municipality recording the deed and mortgages of the new owner. Payoffs This section of the closing statement details any amounts or associated fees the seller owes to pay off the remaining mortgage of the home being sold. Miscellaneous This section will list any remaining fees or charges that don't fit into any of the above categories such as pest inspection fees, survey fees, HOA dues, etc. Subtotals / Totals The end of the statement will show a summary of what the seller owes and what they'll receive. What is an "Excess Deposit" at closing? The "Excess Deposit" line on the seller's settlement statement tends to cause a lot of questions and confusion. This line item refers to any funds that remain from the buyer's earnest money after distributing the real estate commission fees. That excess is a credit to the seller and will be included in their total payout. photo by Oleg Magni Definition of a Closing Disclosure The Closing Disclosure is specifically for the home buyer to understand what they'll owe at closing. This includes taxes, fees, etc. The buyer's lender will prepare the closing disclosure based on the estimated settlement statement provided by the closing agent. If the numbers on the closing disclosure and settlement statement don't match, it's an indication that there are issues that will require further review. The home seller does not receive a copy of the closing disclosure but both buyer and seller still receive settlement statements that summarize costs and payouts. What's In a Closing Disclosure? Loan Term The loan term section conveys the terms of your mortgage, providing an accurate look at how much and for how long you'll be paying for your loan. This section will contain five parts: 1. Loan amount This will be the total amount planned to borrow after deducting the down payment and all applicable fees that were rolled into the loan. If you notice discrepancies between this number and the original loan estimate, get in touch with your lender. >RELATED: A Guide to Pre-Approval for First-Time Home Buyers in Charleston, South Carolina 2. Interest rate This number is a percentage of the total loan amount you pay each year as interest for borrowing the money. It's essentially the fee you pay to borrow the money but it's included in your total monthly mortgage payments. This number should also not be different from that of your initial loan estimate. 3. Monthly principal and interest This section will show the actual interest and principal payments you'll be responsible for with your loan. Mortgage insurance and escrow payments will not be included here. 4. Prepayment penalty This section will include an amount if your lender is charging a penalty for paying off your balance early. 5. Balloon payment: Balloon payments are one-time payments at the end of the loan. These are usually present to keep the initial early payments lower leading up to the balloon payment. These sound like a great idea until you get closer to the end of your loan terms and have a very large payment due. Be sure of all the requirements of this route before committing. photo by Michael Burrows Projected Payments You'll refer to this section of the closing disclosure to understand how the amount you owe will change over the years and give you a clear overall picture of your month-to-month and year-to-year costs for the loan. Payment calculation Unlike the principal and interest section above, the payment calculation section will include all the elements of your payment. Principal, interest, mortgage insurance (if applicable), and estimated escrow for homeowners insurance and property taxes. If you're taking out an ARM or adjustable-rate mortgage, this will also include the calculation for the max payment at each rate change. Estimated total monthly payment This section is the total you're expected to pay each month which includes all the elements listed above. Not all mortgages will include an escrow account, but this is where that payment will be located if yours does. Speaking to your mortgage lender if this number is in any way different from your original loan estimate. Costs at Closing Typical closing costs are between 3-and 6% of your total loan amount. This section is there to give you a better understanding of what you'll pay at closing. At the bottom of all the itemized costs, you see the "Cash to Close" amount which is the full amount you'll need to have on hand on closing day. This amount includes your down payment amount so it should be higher than your total closing costs. Loan Costs This section provides a comprehensive overview of the fees involved in securing your mortgage. Origination fee: The origination fee refers to the administrative costs related to your mortgage application. This is typically between 0.5%-1% of your total loan amount. Mortgage points Mortgage points are purchased to reduce the total interest rate on your loan. Each point equals 1% of the total loan amount so this number will vary depending on the amount you're borrowing. But, the number will be reflected here. Application fee The amount listed here is the amount owed to cover the cost of processing your application and will vary from lender to lender. Underwriting fee An underwriter's job is to review your overall financial landscape to determine the risk factor of loaning money to you. The fee for this service is listed here. Services borrower did not shop for This list includes all the services required by and chosen by the lender which can include things such as the credit report fee, appraisal fee, tax monitoring fee, flood determination, and others. This is another area to compare to the original loan estimate to confirm the numbers match or are close in amount. Services borrower did shop for Items that you chose yourself such as surveys, your home inspection, pest inspections, and title-related services will be listed here. Other Costs Any additional fees not covered in the above sections like taxes and government fees, initial escrow, etc. will be listed here. This section may also include HOA fees, real estate commissions, title insurance, etc. Taxes and other government fees Fees associated with recording the new deed and mortgage into the public records are located here. Services like transfer taxes for the property changing hands and city, county, and possible state taxes are included here as well. Prepaids In this section, you'll find the amount of money you'll need in escrow to cover certain prepaid costs like mortgage insurance premium, homeowners insurance premium, property taxes, etc. Initial escrow payment at closing This section lists the amount of your initial escrow payment that includes your homeowner's insurance, mortgage insurance, and property taxes. This amount is different than the prepaids section. Cash to Close This is the full monetary amount you'll need to bring to the closing table. It includes the amount if any agreed upon, the seller agreed to pay toward your closing costs. Summaries of Transactions Here, you can view a side-by-side breakdown of what the borrower and seller's costs are at closing. As the buyer, you'll be able to see credits for anything paid by the seller in advance such as HOA fees, taxes, etc. In addition, the buyer can see what the seller will owe at closing like credits, mortgage payoffs, etc. Loan Disclosures This section will offer a more detailed overview of the conditions of your loan which include the following: Assumption Assumption indicates whether the loan can be transferred to another person or not, without major changes in the terms. Demand feature Check carefully in this section. If your loan has a demand feature it will be indicated here. This feature allows the lender to require you to pay the entire balance of the loan at any time, including principal and interest. Late payment This section lays out whether your loan imposes late payment fees, how much they'll be, and when they're imposed. Negative amortization If negative amortization is indicated here it means that your loan doesn't fully mature. In other words, any interest not paid during the term of the loan is added to the original principal balance. Partial payments The possibility exists that at some point during your loan's term, you may not be able to make a full payment. This section will indicate whether or not the conditions of the loan allow for partial payments. Even if your loan does allow for this It's important to understand if the payment is going to be held in a separate account until full payment can be made, late fees are charged until full payment can be made, etc. Security interest This section indicates if you default on your mortgage that the lender can take your home and sell it to pay off your loan's balance. Escrow account This section will explain your escrow account in more detail including what homeowner expenses are included and what you'll need to pay into it. Loan Calculations The loan calculations section summarizes all finance charges, the total amount financed, and the annual percentage rate to show you how much your home will cost you over the life of the loan. Other Disclosures This section mostly contains general information about the closing such as tax deductions, refinancing information, and if your state laws will protect you from liability on the unpaid balance of the loan if the home is foreclosed on. Contact Info and Confirm Receipt This section requires a signature to confirm receipt of the disclosure and your contact information. It's important to note that your signature only confirms receipt of the information and not acceptance of the loan. What is the Closing Disclosure 3-Day Rule? Regulations state that home buyers are to receive the Closing Disclosure form at least 3 business days before the closing date. Also known as the "Know Before You Owe Rule", the regulations allow mortgage borrowers additional time to review the information, get their questions answered, and decide whether to proceed with closing or not if changes occur in these three areas: Increases in the APR or annual percentage rate of more than an eighth of a percentage point for fixed-rate loans or a quarter percentage point for ARM or adjustable-rate mortgages. Changes in the actual loan product itself such as a change from an ARM to a fixed-rate mortgage. A prepayment penalty for paying off your principal balance early is added. In Conclusion photo by Alena Darmel It’s important to review all paperwork involved in your home transaction carefully, and this article is a great example of the confusion that can arise when trying to navigate the home buying and selling process. Choosing a great real estate agent with plenty of experience can help you dot your “I’s” and cross your “T’s” ensuring that you don’t miss a thing and come away from your real estate transaction with a feeling of accomplishment instead of stress. If you're thinking about buying or selling a home in the future, contact me today - ask any questions you may have!
The Home Closing Process Step-by-Step
When buying a home, there are dozens of steps involved in the closing process. Some of them are easy to miss, while others are critical to making sure everything goes smoothly. In this guide, I’ll walk through each step of the closing process and explain what each step means. Buying a house is a big deal. There are tons of things to consider and to keep track of, and If you’re new to the real estate market, you may not know where to start. This guide will help you navigate the entire home closing process so that you don’t miss anything important. We’ll cover all the major steps, including the final walkthrough up to getting the keys to your new home. What is a home closing? A home closing is truly the final step in a home transaction. It's a legal transaction that transfers ownership of real property from seller to buyer. In most states, this occurs when all parties sign a contract for sale and purchase, and the deed is delivered to the buyer. Is a home closing necessary? There's no getting around it, a home closing is essential for any real estate transaction to be legally binding. That being said, it's important to understand what happens when you close on a property so there are no surprises. Let's start with some basic terminology. Important terms to know regarding the home closing process Escrow Escrow is the legal arrangement where a third-party escrow company holds money or property until a condition has been met. In real estate, it protects the buyer's good faith deposit. Title Search A title search is an examination of public records to determine and confirm a property's legal ownership, and find out what claims or liens are on the property. (Investopedia.com) Title Insurance A type of insurance that protects the home buyer and lender against any unknown liens or debts that may be placed against the property. Closing Costs Fees associated with completing a real estate transaction. These fees may include attorney fees, document creation, a credit report, or deed recording. There are also closing costs from the lender. Pre-Approval A mortgage lender's written statement that the approved person(s) will be granted a loan for a set amount pending underwriting approval. Getting a pre-approval letter can strengthen a buyer's offer, making it more attractive to a seller. Closing Attorney According to RocketHomes.com, a closing attorney is responsible for organizing and overseeing the closing of a real estate transaction, as well as preparing the necessary paperwork and contracts. In some states, a closing attorney must be present during closing. Contingency Contingencies are conditions that must be met by either the buyer or the seller for the purchase agreement and transaction to continue to escrow. Earnest Money A deposit made to a seller representing a buyer's good faith to buy a home. The money gives the buyer time to get financing and conduct the title search, home appraisal, and inspections before closing. Final Walk-Through Photo by RODNAE Productions from Pexels The final walk-through is when the buyer and their real estate agent do a final inspection of the home before closing. In the case of my clients, I’ve already verified that the repairs have been done at this point. I’m making sure the home is in the move-in condition agreed upon in the contract, in addition to making sure the items to convey are in the home. All the steps involved in a home closing Now that you're a bit more familiar with the terminology involved in a home closing, let's go step-by-step through the order of events that happen so you'll be best prepared for your big day. 1. Ratify the Contract Once the buyer's offer on the purchase price of the home is accepted by all parties, the purchase contract is considered ratified, but not yet executed. This is one of the first steps toward closing 2. Provide Ratified Contract to the Lender Once the contract is ratified, it needs to be provided to the lender so they can begin the finalization of the loan. In addition to the ratified contract, the lender will need the contact information for the closing attorney and your homeowner's insurance as soon as possible. 3. Schedule inspections Once the ratified contract has been provided to the lender, it's time to schedule your inspections for the home. These include the home inspection, the CL100 (Inspection for termites), and any other inspections that are needed in your area. >RELATED: What to Expect From a Home Inspection in Charleston, SC 4. Shop for Homeowners Insurance For cash buyers, it’s not a requirement. However, for buyers seeking conventional loan options, homeowners insurance is required for closing and for your lender to finalize your loan. It's important to choose an insurer that provides the appropriate coverage for your home's needs and the area you'll be living. Consider things like flood insurance depending on your flood zone, etc. 5. Schedule the closing date with the real estate attorney Next, it's time to put your official closing date on the calendar. You'll contact the closing attorney and put a date on the calendar to sign the closing documents. At this point, you'll also provide the ratified contract to the attorney, as well as the mortgage lender and homeowner's insurance contact information as well. Once the attorney has the insurance agent's info, they'll communicate about what's needed. 6. Set Up an Escrow When you buy a house, once you’re under contract you usually set up an escrow account at an independent third party to hold the money until the sale closes. An escrow is a bank account that holds funds until they’re transferred to another account. In the case of a house purchase, the escrow holds the buyer’s down payment until the seller receives the full amount from the mortgage company. Your attorney will set up all necessary escrow accounts so this is something you won't need to handle yourself. 7. Loan Approval & Clear to Close Once the lender approves the loan and you have a "Clear to Close", the lender sends the document package to the closing attorney. 8. Closing Statement Once the closing attorney puts together the closing statement, it goes back to the lender for approval. The buyer should receive the closing statement prior to closing and should review it for accuracy. The closing statement will show the funds required for closing so you can prepare for the next step. 9. Buyer Wires funds to the closing attorney's office You'll be required to pay all fees upfront when purchasing a property. This includes any escrow funds, loan origination fees, title insurance, etc. The closing statement you receive from the closing attorney will list everything you'll need to pay for in detail. Typically, the funds will be wired, but you won't pay with a personal check. Most of the attorneys I work with don’t accept cashier’s checks anymore, but this can vary in other areas. 10. Final Walk-Through I always prefer to do the final walk-through just before heading to closing. The final walk-through is a crucial part of the home buying process. It helps you ensure that everything is in working order before you close. During the walk-through, you'll inspect the home room-by-room to ensure any agreed-upon repairs have been completed and that there have been no items removed from the home that shouldn't be. 11. Review all loan documents After the final walk-through, you'll make your way to closing assuming there are no additional concerns that have popped up during your visit to the home. There's no way around it, you're going to be given a LOT of documents, and as tempting as it may be to speed through them to get your keys and start moving into your new home, you must review all loan documents before signing any agreements. These include items such as the deed of trust or mortgage, the repayment schedule (how much you’ll pay every month), promissory note, and closing disclosure. Make sure you review these documents closely to ensure everything is correct. If you notice any discrepancies at all, don't sign the document until it's resolved. 12. Attorney distributes funds Once all the documents are reviewed and signed, the closing attorney will distribute the funds to all appropriate parties. Here is a list of the most common distributions: Loan proceeds Title insurance policy Any outstanding bills, such as repairs, etc. Real estate commissions 13. Get the keys to your new home! Photo by PhotoMIX Company from Pexels Once all the above steps have been completed, you'll be given the keys to your new home! Frequently Asked Questions about home closings What do I need to have with me on closing day? A photo ID, any outstanding documents needed by the title company and mortgage lender. Cashier's check or wire transfer to cover closing costs. Where does the closing happen? You'll typically meet at the attorney's office and sign all your documents in a conference room. Who will be at the closing? Typically, the buyer, attorney, and mortgage lender will be present. In some locations, the seller and their representatives may also attend but usually, this is done separately, or the seller pre-signs all the required documents to complete the transaction. How long does it take to complete the closing process? Photo by RODNAE Productions from Pexels Depending on if any issues arise during the walk-through that need to be addressed, closings will take some time because of all the paperwork and signatures required. And as I mentioned before, it's important that you understand what each document says and that you're comfortable with the contents before you provide your signature. Don't feel pressured to sign everything quickly - this is a big financial commitment so you don't want to be caught off guard by something at a later date. From walk-through to being handed the keys, I would set aside several hours to complete the process. Is there anything that can cause delays in a closing? While it's always the hope that everything goes smoothly on closing day, delays can happen. There are several things that can come up to delay the process you should be aware of: Appraisal discrepancies Comparable home sales are used to estimate the home's value. Because home prices have increased at such a rapid pace, appraisals can sometimes not reflect the market and come in lower than the offer price. If this occurs, there are a few options you can consider. The first is to try and renegotiate with the seller and ask them to lower their purchase price to match the appraisal. You can pay the difference to make sure the deal goes through or you can walk away from the sale completely. Large purchases before closing Even if you came into the home buying process with a pre-approval letter in hand, the entire deal could fall through if you lose the financing to your mortgage loan. Making large purchases, opening credit cards, or anything that changes your financial health could jeopardize your loan application. >RELATED: Top 10 First-Time Homebuyer Mistakes to Avoid Inspections and repairs Home inspections and the repairs that result are other potential hold-ups. Minor repairs are typically negotiated easily in the purchase contract with either closing credits to the buyer or the seller taking care of them as a stipulation of the purchase. However, large issues that arise such as foundational defects or insect infestations are costly and can cause tension in the negotiations over whether the seller will address them or not. Walk-through concerns While doing the final walk-through of the home, you may notice an agreed-upon repair wasn't completed or damage to the home occurred while the seller was moving out. In addition, you may find an item that was supposed to convey is missing. These situations will require time to resolve before your closing can occur. Document concerns And finally, while reviewing the closing documents to sign you may come across something that needs clarification or doesn't add up. There will be a lot of documents to contend with but it's important you ask questions if you're unsure of something. Final Thoughts While there are a lot of moving parts to contend with to finalize the closing on a home, I hope this outline has helped to clear up some of the mystery and relieve some of the stress you may be feeling. The most helpful thing you can do is to find experienced real estate professionals to work with on this process. Getting referrals from friends and family to help you choose the best real estate agent is a great first step as they'll have a fantastic network of attorneys, lenders, inspectors, and more to help you through the entire process. Are you ready to take the next step in your home journey? Contact me today and ask any questions you have about your home needs - I'd love to help.
5 Important Reasons to Buy a Home In Charleston This Year
The Charleston housing market is admittedly a bit crazy right now. Homes are going under contract quickly after being listed - some within hours - and some for above-asking price. But, that's certainly no reason to reconsider buying a home this year. Here are 5 important reasons to consider buying a home here in Charleston this year. 1. Inventory There's been a limited inventory of available homes for sale in the Charleston area for some time. Currently, there's no real indication of when supply will begin to increase, so if you find a home that fits your needs, you might consider making an offer while it's still available. 2. Interest Rates Although interest rates have increased some, they remain at an all-time low. If you've been thinking about purchasing a home, the time might be right for you to lock in a low mortgage rate before they begin an upward trend. Lower interest rates can lower the monthly mortgage payment of a home in the price range you're comfortable with, making the cost of homeownership more affordable. In some cases, it could also qualify you for a higher price point. 3. Generational Wealth It's a great time to invest in real estate. Currently, rental rates have been trending upwards capitalizing on the housing scarcity. In the south, rental rates are averaging higher than most mortgage payments. Of course, there will be ups and downs in the market, but real estate consistently appreciates over time. So, if you're wondering whether you should continue to rent vs. own, the increasing rents in the area might make the decision an easier one. 4. An experienced Realtor® makes buying a home in Charleston, South Carolina a breeze Buying a home is one of the most important decisions you'll ever make. It’s also an emotional decision that requires careful consideration and planning to ensure success. That’s why it makes sense for you to work with someone who has experience navigating the process. A real estate professional knows what questions to ask when looking at homes, how to negotiate effectively, and which neighborhoods are best suited for your needs. Finding the best real estate agent in the Charleston area doesn't have to be hard, you can ask friends and family or do research on your own by reviewing ratings and speaking to past clients. 5. Charleston is one of the nation's best places to live Charleston, South Carolina is just a cool town! Charleston is consistently ranked as a great place to live by various publications. Today.com recently named Charleston one of the top 10 best cities to live for post-pandemic life. Here are just a few of the lists that the area has been included in as a top living destination: 100 Best Places To Live 2019 - Money World's Best Cities - Travel & Leisure Best Places to Live - US News There are still some great opportunities to be had as a home buyer in Charleston. You just need to know where to look, who to work with and what you want. If you've been considering a purchase but are unsure of your next steps, Get in touch! I'm always happy to answer questions about the current real estate market or neighborhoods in the Charleston Tri-County area.
The Top Five Homebuyer Questions I'm Always Asked
After 18 years of working as a real estate agent, you can imagine I've worked with quite a few home buyers. While everyone naturally comes to me with questions when first starting their house hunting journey, there are a few that always seem to crop up. In this post, I've compiled the top five home buyer questions I'm always asked with answers I think can really help. 5. How long will it take to close on the house once my offer is accepted? In the past, the average home sale has taken between 30 to 45 days from the date of contract signing until closing. However, some homes sell faster than others, depending on the market conditions. In today's market, the time for the closing process has shrunk significantly with the process being complete in 30 days or less in some instances. Even though homes are selling quickly in the current market, you should be wary of FOMO (fear of missing out) and making concessions you may regret later. Choosing a great real estate agent can help you tremendously in navigating the current market and they can help advise you whether to take the plunge on a certain home. 4. Do I have to get pre-approved? Many of my past home buyers have been pretty confident where they stand financially, and don't feel they need to get pre-approved until they find a home they're interested in. Many also believed it would hurt their credit score if they got pre-approved before starting their home search. But there could be surprises. In today's market, there may not even be time to get pre-approved once you find that perfect house before it goes under contract with someone else. And these days, a seller won't even entertain an offer on their home without the potential buyer being pre-approved. So, yes, you should always get pre-approved before beginning your home search. This is one of the top mistakes homebuyers make and it's my recommendation whether it's a buyer's OR a seller's market. It's just good practice to be aware of how much home you can afford so you're aware of your budget and wiggle room. By providing information about your income, assets, debts, and employment history, the mortgage lender will use this information to determine whether they'll approve you for a loan and for how much. If you wait until after you've found a home you're in love with, you could be setting yourself up for some serious disappointment. 3. How much money will I need? First, the obvious: Buying a home costs money. Before the pandemic, the average price for a single-family home in the U.S. was around $250,000, which included closing costs, taxes, insurance, and other fees. However, the real estate market has been on an upward trajectory since the pandemic began with people seeking homes with extra space for their families and home offices. After the housing inventory became strained with fewer homes available, home values began to rise significantly. With low inventory and high demand, buyers have had less flexibility in bargaining once they find a home they want. With that being said, unless you're planning an all-cash offer on your home, there are definitely some things you'll need to bring to the table: Down Payment While there are a number of down payment assistance programs available, I'd recommend having some sort of down payment saved in the current market. While a 20% down payment or more will make your offer stronger, it’s more important to have some amount available to help with your loan terms and the offer on your home. Closing Costs This isn't the type of housing market to ask the seller to pay your closing costs so you should expect to pay between 2%-5% of the home's purchase price. Inspection Fees Home Inspections, CL100, and any miscellaneous inspections you need to feel comfortable with your offer. Additional Costs Other costs you should factor into your home purchase are moving expenses, property taxes, homeowners insurance, home warranty, HOA fees, and PMI (Private Mortgage Insurance) if necessary. 2. Should I wait until the market changes? One of the top questions about selling a home I get is WHEN you should list a home. So, it makes sense that buyers are interested in WHEN they should buy and if they should wait. Trying to wait out the market to shift in your favor is an option, sure. However, the facts are we don't know when or even if the housing market will change in the near future. Interest rates are expected to increase in 2022, although we're not sure by how much. This makes affordability a concern that moves front and center for home buyers. My recommendation is to take advantage of the lower interest rates now if you can. Ultimately, your finances and personal situation should dictate whether you jump into the housing market now or later. If something comes along that fits your needs and price range you may want to make an offer before it's gone. Ask yourself these questions if you're wondering if you should buy this year: Are your monthly debt payments around 35% or less of your monthly income? Do you have an emergency fund to cover 3-6 months of expenses? Does your budget keep your monthly mortgage payment at 25% or less of your monthly income? Do you have some sort of down payment saved? Do you have 2-5% of your budgeted home price ready to cover your closing costs? If you can answer yes to all these questions, you should consider jumping into the housing market as it may be the best time for you to buy a home. If the answer is no to one or more - you should seriously consider waiting until you can. Not only that, with housing inventory expected to stay tight in 2022 you may not have much of a choice but to wait for something you love to come along. My final bit of advice is to find the best real estate agent you can to help you navigate the current market with your best interests in mind. They should make you feel comfortable about the process and they shouldn't make you feel pressured into a huge financial decision that doesn't feel right. 1. How much should my offer be to get this house? This is the number one question I'm asked by buyers once they find a house they love - and it's a great question. The quick answer is: It depends. There are a few factors to consider when deciding how to make the best offer to make on a home. Not the least of which is simply how badly do you want the home? But, other factors come into play that are just as important: Are you willing to go to the top end of your budget to get the home? What are the current market conditions like? What are comparable homes selling for in the area? Are you prepared to pay the difference if the home appraises lower than your offer or lower than the contract price? In a strong seller's market, as it is right now, you should be prepared to offer above the asking price to increase your chances of winning the sale. It's going to be a very rare case in which there aren't multiple offers on a home - and if the home is priced attractively, you can bet multiple offers will be on the table. There are strategies to help keep your offer as low as possible. An "Escalation Clause" sets a maximum price you're willing to offer on the home and your counter-offers will only increase incrementally up to that amount before you walk away. This allows you to stay within your buying budget and not end up overpaying for the home. Again, lean on your real estate professional to advise you on this decision. They'll be aware of your budget, what the market is like, and they should also be aware of what comparable homes in the area have sold for. All this info will help you make the best offer you can in a seller's market. Final Thoughts on Home Buyer Questions Hopefully, this post answered some of the same questions you have about buying a home. And if it brought up some new questions you hadn't thought about, great! Having as much knowledge as possible will help you be prepared for the home buying process and keep the process as stress-free as possible. If you have any questions about the home buying process I didn't answer here, don't hesitate to get in touch via email, text or phone - I'd be happy to help!
Is 2022 a Good Time to Sell Your Home?
Maybe you've been considering a bigger home for the family or downsizing now that the kids have flown the coup, maybe you're relocating for a new job. Regardless of the reason, if you're wondering if 2022 is an ideal time to sell your Charleston home, I've got the info you should know. I'll give you some reasons why you should, and a few reasons why you should think twice. You May Get the Best Price Possible 2020 saw historically low-interest rates which kicked off the seller's market we're experiencing now. And, even though we've seen some increases in mortgage rates since then - rates are still competitive. Couple that with a diminishing home inventory and a surge in buyer demand, and the market conditions in 2022 find Charleston homeowners (aka would-be sellers) with an advantage. Because as housing inventory struggles to keep up with buyer demand, real estate markets with homes for sale are seeing offers over list price and bidding wars which ultimately benefit you as the seller. "As of late April, there were 40% fewer homes on the market compared to last year...(fool.com)" You May Struggle to Find A New Home, Though One thing to keep in mind when considering the sale of your home: Although you may find your home quickly under contract after only a few days on the market - with multiple above asking-price offers - the same will hold true for you when you become a potential buyer and start looking for your new home. One way this can still benefit you as a buyer is this: If you're considering downsizing or relocating, the higher sale price you get for your home could allow you more buying power for a smaller home or one in an area with a lower price point. Why You Should Sell A lot of potential home sellers avoided putting their home on the market for a number of personal factors: Their own concerns for travel, refinancing their home with the low-interest rates, and not wanting tons of people roaming through their home during the coronavirus pandemic. So as more and more people get vaccinated against COVID-19, we could see an increase in their willingness to put their homes on the market and increase available inventory. In addition, as lumber prices continue to drop, new construction will begin to pick up around the Charleston area which will also contribute to an increase in inventory. Houwzer.com also mentions that a backlog of foreclosures exist that have yet to hit the market - if and when that begins to happen home prices can begin to drop and your chance of getting the current prices will drop as well. Therefore, you may want to consider choosing an experienced real estate agent and putting your home on the market while there's still low competition with other homes. As more and more homes become available for sale, home prices will correct themselves and you could see potential profits shrink. Why You Shouldn't Sell If you refinanced your current home when mortgage interest rates dropped to all-time lows in 2020, you're most likely in a better place financially with your current monthly mortgage payment. Purchasing a new home, and the associated costs it comes with could negate the work you did and put you in a less than ideal situation in the current housing market. Speaking of costs, there's an old saying, "There's no such thing as a free puppy" and the same is true with a new home purchase. The purchase price is only one part of the overall costs; closing costs, property taxes, etc. are all things that can add up if you're not prepared. So, you should be sure of your financial situation before taking the plunge. Bottom Line: A Buyers Market Will Return In the end, this seller's market will eventually begin to wind down in favor of the buyer. Home inventories will correct themselves and the average home price will begin to stabilize as we return to a more balanced housing market. The big question is when will it happen? So, current homeowners should weigh the current market conditions, check to see what their home is currently worth and decide if now is the right time or if they should wait. If you've been wondering about selling your home, GET IN TOUCH. I'm happy to discuss your options and give you an estimate on what you could expect to make from the sale of your home.
Rent vs. Own: Why Renters Have the Advantage in a Hot Housing Market
With housing, in general, being a hot commodity these days, rent prices will likely continue to climb. And If rental rates climb far enough to start matching or exceeding the mortgage payments for a home you could call your own - is it a good time to consider the plunge? In this post, we'll go over the pros and cons of each, but we'll also look at why renters have an advantage in today's hot housing market. What Are the Advantages of Renting? Flexibility Renting allows you the opportunity to pick up stakes and head for a different climate, relocate for work with ease, snag one of the new two-bedroom apartments in the cool new area downtown, or any other number of choices. You can pay an early termination fee, or wait out your lease and move on. You're also able to rent month-to-month in some properties for even more flexibility or secure a longer-term lease to lock in rental rates for a longer period. If you're older, you have the option to move closer to family in case of emergency or simply to visit more often. As a homeowner, it's a bit more complex than that. Fewer Maintenance Costs In most cases, you won't be on the hook for most major maintenance costs like plumbing, pests, electrical and structural issues. But it's important you review your lease thoroughly before signing to make sure the landlord takes care of the majority of any repairs. If you're older, the ability to do some of these larger tasks will decrease as well. Renting leaves those tasks to the landlords and superintendents of the buildings you rent. For homeowners, these costs can be expensive and eat into savings or available cash. The website AmFam.com says to estimate around $1 per square foot of your home per year for upkeep. That number increases with older homes. More Available Funds It's possible that your rental situation can free up additional money that can be saved or invested. This depends on how much your rent and other monthly expenses are, of course. But investments tend to have higher returns than real estate appreciates so this option could put you in a better position financially when you do decide to buy. In addition, some rental properties include amenities like gyms or pools which would also reduce membership costs for these services if you had to pay for them individually as a homeowner. Insulation from the Housing Market Renting also keeps you away from changes in the housing market. In the off-chance of another housing market crash, you'll be in the clear. And, if you are concerned about the housing market, then renting could be your hedge against the market. And while rental rates did increase in the past few years, the cost of renting didn't do so at the same rate as housing prices. Competitive Advantage For homebuyers who are currently homeowners themselves, a contingency on the sale of their home will usually be the norm in their offer. This contingency is based on selling their home in order to purchase the seller's home. This can cause delays in closing if the buyers are unable to sell their home in time. In the case of a renter buying a home, you may have an advantage over other buyers because you won't need the seller to accept a contingency based on the sale of a home. You're either finishing out your lease, subleasing for the remainder, or paying an early termination fee and you're done. Sellers may be more attracted to a qualified buyer without the need for contingencies. What Are Some Negatives of Renting? You're Not Building Equity This is probably the number one reason you've heard against renting. So, you may already be aware of this, but your monthly mortgage payment on a home does two things: It pays down the balance you owe on the home while increasing the equity (or value) of your home. In addition, your home will also grow in value on its own which is known as appreciation. Your monthly rent payments, on the other hand, provide your landlord with a source of income and not much else for you in the long run. Unless, of course, you count your history of on-time rent payments that would help you with the mortgage application to purchase your own home. Trying to "Wait Out The Market" Trying to time the market could be problematic for a renter. You may continue to rent in the hopes that home prices will fall before you snatch up a "steal" of a home. The issue here is that in a market with high demand for housing and high prices - the rental market tends to mirror the changes to capitalize on demand. In addition, you could potentially miss out on the perfect "Dream Home" in hopes it will still be available when the market shifts in the buyer's favor. Add to that the potential for home values to continue to rise and homeownership could be further out of reach in the future. Less Tax Benefits Unless you live in an area that offers a renter's tax credit, there really aren't any tax breaks available to you as a renter. A homeowner can deduct property taxes, mortgage interest, and even a certain amount of profit when selling their home in some cases. Probably the only parallel tax break available are certain business expenses when working from home which has become more of the norm in the past few years. What Are the Advantages of Home Buying? First-Time Home Buyers Have an Edge As a first-time buyer, you have access to certain programs like grants, down payment assistance, and more while veteran home buyers looking for their next home do not. They also have more flexibility because - as I mentioned before - there's no home to sell before the purchase of the new home can close. First-time buyers don't need a contingency in their contract. Repeat Buyers Have Leverage, Too Veteran home buyers will usually be able to use the equity in their current home for larger down payments. This in turn can lead to more favorable terms on your mortgage and a more attractive offer on the home to the seller. A home sale contingency gives the buyer a certain amount of time to sell their existing home in order to finance their next one. A seller receiving multiple offers might not be willing to entertain the “ifs and whens” of these contingencies, so they’d be more inclined to accept an offer without one. Building Equity (There it is again) A home is also an asset that can appreciate over time or in a market where property values increase quickly. So you've invested in something that will either provide a return one day or can be left as an inheritance to your family. Tax Benefits As a homeowner, you have the ability to deduct mortgage interest and property taxes. In some states, you also have the ability to deduct a certain percentage of your home as a business expense if you use it as a home office. Mortgage points can also lower the amount you owe in taxes, as well. As a renter, none of these benefits are available to you. More Stability and Freedom As a homeowner, you don't have to worry about a landlord increasing the rent or selling the property and kicking you out. Additionally, many mortgages lock in rates for a period of time so there are no surprises there, either. If you want to build an addition or knock down a wall as a homeowner, go for it. As a renter, you'd rarely have the luxury of even repainting a room much less remodeling. What Are Some Negatives of Buying a Home? It's Still A Seller's Market Right Now In 2022 it's still a seller's market, which means the inventory of homes is low and demand is high. Sellers have the advantage in a home transaction and home values are currently high, there's no doubt about it. If you're currently in the market to buy a home, you'll need to be smart and do your research on the home, the neighborhood, community, etc. to decide if the purchase is right for you. Added Costs of Maintenance and Upkeep As a homeowner, you're now on the hook for all the maintenance needed for your home. If an appliance breaks, you're either paying for the repair or for a new one. Although, having homeowners insurance and a home warranty helps to reduce the costs of some of these costs. In some places, Owning a Home Can Be More Expensive Than Renting It is possible where you live that mortgage payments exceed the cost of renting. However, Investopedia.com cites a report in which owning is typically less than renting in the South. Final Thoughts on Owning a Home vs. Renting Is it better to own a home or rent one? Of course, I'd love to say it's far better to own a home than rent (And that I'd love to help you buy one;) But, the fact of the matter is, you need to weigh the pros and cons listed above and possibly more to understand if it's right for you or not. Speaking from my own experience and from the experiences of my current and past clients, owning your own home is a huge and incredibly rewarding step in your life. Your home is a place to create memories, raise a family, and a way to grow wealth. But, homeownership may not be for everyone. Or, it may be for you, but just not the right time. Regardless, it's an important thing to explore if the idea of owning a home is appealing to you and I highly encourage you to do your research. For a bit of additional research, I'd also recommend checking out my free mortgage calculator and playing around with some numbers. Compare the mortgage payments on a $200k, $300k, even a $500k home with what you currently pay in rent and see how things compare. Try adding 0%, 10% and 20% down payments and compare those numbers as well. If you've read this far and still have questions, that's OK! Get in touch and let me know how I can help.
When Is The Best Time To Sell Your Home In 2022?
Traditionally, Spring has been the most popular time to list a house, however COVID-19 and the surge in home values have made the real estate market anything but traditional. But, where does that put you as the homeowner if you're interested in selling your home sometime this year? Is Spring 2022 still going to be the best time of year to list your home, or will the continued uncertainty of the pandemic, economy and other unexpected events affect the timing? If you're considering selling this year, make sure you know what you're dealing with before taking the plunge. What Will Home Sales Look Like in 2022? Home sale values rose significantly in 2021, and according to Fannie Mae, the trend is expected to continue into 2022, although at a slower rate. In 2021, issues with the supply chain and construction materials meant fewer new homes being built. This decreased the available housing inventory that would have been helped by new construction. In turn, this increased demand and caused home values to jump. While I'm seeing a good amount of new construction already, I can't say it looks as though there's more construction compared to last year. Instead, it may seem like there's more new construction due to the lack of resales (older homes being listed) which makes it seem as though there are more new homes being built. That being said, I think home values for sellers will remain high through most of the year. Will 2022 be a Buyer's Market or a Seller's Market? The predictions from experts indicate that 2022 will continue to be a seller's market. However, there are indications that bidding wars driving up your sales price will happen less frequently. This could mean buyers can be more flexible with purchase contracts and avoid all-cash or offers with waived contingencies, etc. I predict we'll continue to see a strong seller's market for at least the first half of 2022 and maybe longer. Are Mortgage Rates Going to Affect Home Sales in 2022? Even minor increases in mortgage interest rates can affect home sales. Even though there was a slight increase in 2021, there's currently no indication of major jumps in 2022. However, there is some indication that we'll see another increase in mortgage rates soon. That could be a good enough reason to list your home sooner rather than later. If It's Going To Be A Seller's Market, When Should I List My Home? Look to list your home before September at the very latest this year. Families begin preparing for the beginning of the school year and interest tends to drop off from there into the winter months. Listing your home on a Thursday can increase the chance of your home selling quickly and for more money as there's more available free time for potential buyers to view homes and make decisions over the weekend. Listing your home on a Sunday makes it difficult for potential buyers to find time to see the home until later in the week, resulting in your home sitting on the market for longer. This is only slightly better when listing your home on a Saturday or Monday. One final note, it typically takes at least two months to prepare your home for sale. You'll need to research and find the best real estate agent in the area to help you with the listing process and recommend a listing price. You'll need to clean and stage your home for listing photos and make any minor repairs to get your home ready to sell. So, have an idea of when you'd like to sell and work backward from there. So, Is Spring STILL the Best Time To List My Home? The warmer weather is typically when buyers get rid of their winter blinders and hit the market in search of new homes, and I'm not seeing anything to suggest a change in that tradition. Home inventory was low throughout all of 2021 and I expect it to remain low and remain a seller's market into the spring. That being said, YES, Spring will still be the peak selling season and the best time to list your home in 2022. However, with buyer intent remaining strong and a bump in buyer intent early in the new year, I would suggest getting on the market ASAP to beat anyone that is waiting for spring. In this market, less competition is a good thing. I hope this information was helpful, if you made it this far - leave a comment or question and I'll be happy to answer. Or better yet, get in touch!
The Ultimate Home Maintenance Checklist for Charleston Area Homes
Like most homeowners, your house is probably in need of some home improvement repairs and upkeep at this very moment. My home maintenance checklist is the perfect guide for keeping homes in the Charleston area ready for anything. Why you should use a checklist for your home maintenance Ask most people and the idea of spending a weekend raking leaves or draining a water heater rates as high as getting a root canal. But for those same people, their home is probably their biggest investment. Keeping it regularly maintained is an incredibly important responsibility that doesn't have to be overwhelming. Having a checklist to follow keeps you organized and on track, and breaking the tasks up into seasonal activities makes the job less overwhelming. Spring Maintenance Checklist Spring is typically known for the big deep clean. "Spring Cleaning" conjures up visions of days and days of scrubbing, washing and vacuuming. It's enough to make you hide under the covers and wait until summer! I have a short list to keep you on top of your home maintenance tasks without having to undertake anything overwhelming: Adding a layer of mulch to flower beds protects plants from dry spells and reduces weeds. Clear dead plants and shrubs from around the home. This makes way for new growth and tidies up the overall look of the exterior. Trim excess plant growth from around your home. This prevents damage, critter access, and maintains a clear path for yourself or service workers. Turn on outdoor faucets to inspect for any winter damage to the plumbing and hoses. Check trees for damaged or dying branches. Have an arborist inspect any concerning trees to prevent safety hazards during hurricane season. Spring is the ideal time to seed your lawn before the heat of summer. This allows the grass time to grow hardier as the temperatures rise. Pull out the lawnmower and give it a tune-up by cleaning or replacing spark plugs, sharpening blades and changing filters. Make sure any electric mowers and landscaping tools are charged. Inspect driveways and walkways for cracks or damage that may have occurred from sudden changes in temperatures over the winter. Clean your gutters to prevent roof leaks or other water damage to the inside of your home. Inspect your roofing for missing, loose, or damaged shingles. This will prevent leaks later on. Take inventory of your hurricane shutters or covers to make sure all are accounted for and don't need replacement or repair. Summer Maintenance Checklist Summer in the Lowcountry means trips to the beach, summer vacation for the kids, and, of course, that Lowcountry heat. With all the amazing beaches we have around, you'd probably rather be there than doing work around the house. But I have just a few items to take care of and then it's off to the beach you go! If you have an irrigation system installed, check your sprinklers to make sure none are damaged or clogged. Make sure to adjust the trim height on your mower to cut grass higher. This prevents burn and keep your lawn healthy in the warmer temperatures. Check decks and patios for loose or broken wood or bricks. Fall Maintenance Checklist Fall in the Lowcountry usually means mild temperatures and no need for heavy layers. It also means falling leaves and a few home maintenance tasks to prepare for winter. Keep your yard free of leaves with regular raking to prevent mold and dead grass. Flush your hot water heater. This removes sediment to prolong the life of your heater and helps with energy efficiency and utility costs. Reinstall storm windows, if available, for added insulation and heating and cooling efficiency. Install or replace damaged weatherstripping on doors and window frames. Weatherstripping keeps drafts out of the home, prevents water damage to your home, and helps with heating and cooling efficiency. Chimneys should be cleaned regularly to ensure proper airflow throughout the home, removing ash and debris from the chimney flue. Winter Maintenance Checklist Rarely does the Lowcountry of South Carolina see extreme winter weather conditions due to our southern location, but it does happen! And because it's so rare, it's even more important to prepare your home in case it does occur. Reverse ceiling fans so that cool air pushes the warm air downward. Colder weather causes wood and metals to shrink, loosening things like knobs and handles. Check and retighten them to prevent damage or accidents. Inspect and repair caulking around showers and tubs to prevent water damage. Check shower heads and faucets for sediment to prolong life and improve water pressure. You can even consider installing water softeners if you're running into issues with hard water stains. Use up or drain unused gas prior to storing lawn equipment. Old gas clogs carburetors. Check any foundations for cracks, and make sure winter runoff is directed away from foundations in preparation of spring storms. Other Important Home Maintenance The following maintenance tasks don't fall into a seasonal category, but are still really important. Monthly Clean your air ducts & furnace filters regularly so your heating and air conditioning works efficiently. Clean drains in sinks, tubs, showers, and dishwashers to prevent smells and clogs. Keeping the garage clean is one way to make sure pests aren't attracted to your home. If there's junk or trash lying around, bugs and animals may find their way indoors. Remove lint and debris from inside and outside washer hoses and your dryer vent. This improves energy efficiency and decreases the chance of fires by removing the flammable dryer lint. Every 6 Months Vacuum refrigerator and freezer coils and empty and clean drip trays. Clean window and door screens. Replace the batteries in carbon monoxide and smoke detectors. Yearly Power-wash windows and siding to prevent mold and dirt buildup that can shorten the life of the home's exterior materials. Oil garage-door opener and chain, garage door, and all door hinges. Make sure to use an oil or grease that doesn't attract dust or contains solvents. This prevents any jamming and that horrible squealing sound that makes your neighbors think bad thoughts about you. Replace interior and exterior faucet and shower head washers if needed. >RELATED: Get Your Home Ready to Sell With These 6 Steps Final Thoughts I hope this home maintenance checklist proves helpful to you. A lot of these items you may already know, but hopefully there's some you may not have thought about. Being a homeowner certainly involves good deal of responsibilities to manage in order to keep your home safe and sound. But, If you break these maintenance projects up into seasonal activities, you won't feel as overwhelmed. This also means you'll have fewer home repairs and expenses like hiring a professional to deal with. That will definitely result in increased peace of mind.
New Year Resolutions for Your Home in 2022
Every year we make New Year's resolutions about exercise, diet, our outlook on life, etc. - but what about our homes? If it seems like the best time to prepare your SELF for the year to come, wouldn't it also make sense to prepare your HOME for the year to come, too? Whether you're thinking of selling your home, buying a new home, or just considering what you can do to make a better effort at keeping your house running smoothly - I've got a few great ideas for new year resolutions for your home in 2022. Purge The Spaces in Your Home Keeping your house clean is always a good idea for a variety of reasons, but in order to ensure a profound difference in things - you should really consider ridding yourself of things you don't need. I'm not talking about grabbing a couple of things to make a Goodwill run and I'm not talking about purging your entire house in one go. What I mean is making a plan to go room-by-room and ditching anything you haven't used or worn for the entire year. This should indicate that you really don't need it. Consider doing one room a week so you don't burn yourself out - but be ruthless and if it's not something you use frequently or as Marie Kondo would say "Brings you Joy" - it's gone. If you love a good yard sale - by all means, consider making a little extra cash and hold a yard sale when spring rolls around. But, whatever doesn't sell gets donated or disposed of. Ultimately, completing a purge of your home will make it easier to keep clean and organized on a daily basis - and should you decide to sell your home - it'll be much easier to get it staged, ready to list, and sold! Schedule Regular Maintenance For Your Home Your home needs regular tending throughout the entire year. If you wait until something breaks or stops working - not only are you setting yourself up for an expensive surprise, you're putting yourself in a position that's inconvenient for the whole family and could have easily been avoided. For an in-depth look at what you should be scheduled for maintenance throughout the year, read my post: "The Ultimate Home Maintenance Checklist for Charleston Area Homes" which goes season-by-season listing the best tasks to knock out and keep your house in tip-top shape. But, if you want to get really thorough and make sure everything is working properly in your house, schedule a home inspection. You'll get a comprehensive list of items a professional inspector sees that may cause potential issues with your home. This option is especially helpful if you're considering selling your home in 2022. You'll get way ahead of the curve and reduce risks with potential buyers when it comes time for them to have your home inspected. Make Your Home Safe And Sound You've cleared out your unwanted items, you've set up a regular maintenance schedule to keep things in great working order, so what next? Making sure you've addressed any potential health hazards in your home is another great way to set your home up for the new year. Carbon Monoxide can be fatal if it accumulates in your home. Chimneys and furnaces can become blocked and the fumes can back up into your house - it's odorless so you won't know if you're ingesting it until it's too late. A carbon monoxide detector will alert you if there's any danger and they can be purchased for $40 or so - a worthwhile investment to keep you, your family, and pets safe. One of the last items on my safety list is dryer lint. I know that sounds incredibly innocent but dryer lint is highly flammable and something you rarely think about while it's building up in your dryer vent and consequently backing up into your home. Once that happens, it can start a house fire, so you should go further than just cleaning the lint screen before each load. Cleaning the vent hose and lint trap will help prevent a fire from starting. It also helps your dryer operate more efficiently which segues nicely to the next item on my list... Shrink Your Bills When you cut down on your energy usage at home, you can save money and help the environment. You don't need fancy equipment to do it either; all you need are some simple ideas. Implementing any of these things will help save energy and money: Installing LED bulbs to replace your incandescent bulbs Wait for a full load of laundry or dishes before running the wash cycle Increase the temperature setting on your air conditioner when you leave the house and turn down your heater at night Turn off lights and other electronics when you leave a room Check the temp on your water heater and consider reducing the setting 10-20 degrees Run the dishwasher and clothes dryer in the evening when most utility companies charge less for energy Bump the temp up on your AC in conjunction with the use of your ceiling fans Get Your Home Organized Once and For All When you hear the word "Organize" in relation to your home - a lot of people will tense up thinking about hours and hours of neatly folding clothes, and placing your snacks in perfectly labeled containers to create ungodly perfect Pinterest-style pantries. But the thing is this; if you purged your clutter from the first item on the list, you've already won half the battle! One of the best things you can do to get organized isn't by placing all your items in perfectly labeled containers and boxes - it's really about committing to routines. If your family has a problem with dirty laundry ending up on the floor - start with a nightly routine of gathering everything up and dropping them into the hamper. If you're tripping over everyone's shoes as you walk through the house - keep a basket by the door and have everyone remove their shoes and drop them in when they get home. Mail everywhere? It all goes in one container and gets sorted once a week. Small actions that become habits like this will help your household stay organized and reduce the headaches later. Get Financially Prepared It’s easy to get into financial trouble if you don’t plan ahead. And if you're thinking about buying a new home in 2022 there are a few things that will put you in great shape when the time comes to start looking. Start saving more for a downpayment and closing costs If your credit score needs some work, start paying down debt and ensure bills are getting paid on time. Speaking of credit, avoid adding any new loans or lines of credit in 2022 to keep your financial records healthy and your debt-to-income ratio in a good place. You can even consider signing up for a service like Credit Karma to keep an eye on any issues with your credit report. A Few Things to Look Forward to in 2022 I have a few things to look forward to in the new year if you're considering buying a home but have had some trouble finding the perfect property: New Inventory in the New Year! You'll most likely see an increase in available homes in 2022 for several reasons. Some home sellers are simply waiting out the holidays to put their homes on the market due to their own holiday plans and low interest from buyers as they enjoy the holidays with their families. Some home sellers will be waiting until spring when flowers bloom, the grass is green and curb appeal is at its peak. And some home sellers are planning to coordinate the listing of their home for sale and their subsequent move with the school year. That's all to say that there should be a good inventory of available homes in 2022 if you're interested in buying. Final Thoughts On Your Home's New Year Resolutions Whether you've been sitting on the fence about getting your home ready to sell in the hopes of a fresh start. Or, if you're ready to buy your dream home and are looking for ways to get ahead of the game. Or, if you simply want to get your affairs in order to ensure your household is a well-oiled machine - these tips should at least get you moving in the right direction. I'd like to wish you a happy and prosperous 2022 and here's to a fantastic year! If you or anyone you know is considering a move, please pass along my info or get in touch - I'd love to help them find a place to call home!
Get Your Home Ready To Sell With These 6 Steps
In the current market, home sellers have quite the advantage. Even with inventory slowly turning the corner and beginning to rise, buyer interest is still high - keeping home prices just as high (if not higher) and allowing sellers to field multiple offers over asking and taking their pick. But, regardless of the current state of the housing market. Getting your home ready to sell is still a must, so here are my 6 steps to prepping your home to get it sold quickly and for top dollar. Why Do I Need To Prepare My Home to Sell? One of the top questions about selling a home I get is what you should do to get it ready to list. But with the speed at which homes are going under contract in today's market, you may be wondering why it would even be necessary to talk about making sure your home is in its best position to be sold. The fact is, whether it's a seller's market or not, home sellers should still take steps to ensure they get the most return on the sale of their home and lower their risks associated with unqualified buyers or unfavorable negotiations. Placing your home on the market without first addressing some simple steps could put you in the crosshairs of potential issues with a high-risk buyer who can squash the deal if there are problems with the home if they don't have available funds to address a discrepancy between their mortgage and appraisal values and more. The 6 Steps to Getting Your Home Ready To Sell: Let's take a look at how just 6 steps can make sure the sale of your home is almost bulletproof. Step 1: Repairs This one may seem obvious but it's important you address all the glaring issues with your home that need to be repaired. The basic act of living in your home day-to-day will inevitably cause wear and tear that all homes experience like a leaky faucet, doors that don't catch, and loose cabinet handles. These little things you've come to accept can add up to a long list of requested repairs a buyer can use to lower the offer on your home. Structural issues such as the floor, roof/windows, doors, and things like plumbing and electrical will all need to be checked and repaired if needed. Some home sellers will even have a pre-listing home inspection to get ahead of the curve. Check out my post on what to expect from a home inspection for more information. Step 2: Declutter As potential buyers walk through your home, they'll be visualizing themselves living there and considering the possibilities of each room in the house. It's difficult to do that when you've got every room jammed to the hilt with the things you've collected over the years. According to opendoor.com, professional home stagers recommend removing 50% of the items within your home before showing. Walk through each room of your home and make a list of unnecessary items to remove while it's listed and being shown. Consider what can be donated or given away, and store and organize smaller items in bins and baskets to tidy the room up. Buyers are going to look in closets, garages and storage sheds, so don't resort to cramming everything out of the direct line of sight - they'll find it eventually. Removing larger items may result in the need for storage space. The hutch your grandmother gave you may be lovely, but if it disrupts the flow of a room or blocks access to something - it should go. Step 3: Depersonalize Part of your decluttering and organizing process should include depersonalizing your home. This removes all the personal items within the home that distract the prospective buyers while they're trying to visualize themselves living in your home. You don't want a buyer turned off by taking offense to your lifestyle or feeling as though they're guilty of being in a home with your presence looming over them. Remove family and personal photos, religious symbols, music, movies, and anything else that places the focus on you. Step 4: Curb Appeal Of course, the first impression a potential buyer has of your home is the outside. As they pull up to the home with their agent, you want them to feel as welcome and impressed as possible to start things off on the right foot. A study from Texas Tech University says the appearance of your home's exterior can mean an increase of your home's value of up to 17% Examine the exterior of your home from the driveway around the house including the yard and physical exterior of the home itself. Is the home in need of a good cleaning from a pressure washer? Paint touch-ups? Trim away overgrowth that makes the home feel hidden and small, remove yard debris and any dead limbs on surrounding trees. A thorough mowing with edging along with new mulch, fresh shrubs, and flowers will do wonders for the curb appeal. A couple of flowerpots on each side of your front door full of colorful or tastefully arranged flowers is always a winner. Step 5: Professional Cleaning Once the legwork of decluttering the inside and sprucing up the outside is complete it's time to consider the thorough cleaning of the inside of the home. I highly recommend hiring a professional cleaning service to ensure no stone is left unturned. They'll scrub the home from top to bottom, scrubbing tile and baseboards, windows, and little details you may miss. If that's not possible for some reason, you can certainly do the work yourself but you have to make sure you're thorough. Keep in mind buyers will be inspecting your home to decide if it's worth the asking price, so you shouldn't be surprised if they're peeking in/under and behind things. Once the house is clean - keep it that way. Make sure you're even more vigilant than before about keeping things put away, cleaning up after yourself, and keeping a weekly schedule for cleaning the inside and mowing the outside. Step 6: Staging The icing on the cake before listing your home is having it professionally staged. "...staged homes fetched between 1% and 5% more in dollar value than similar homes..." (forbes.com) that didn't get staged. It's more important to address the rooms of the home that interest buyers most like the kitchen, master bedroom, and bathrooms than to complete a whole-home makeover. It's certainly possible to attempt to stage your home yourself but I recommend the use of professional stagers. An experienced and reputable stager will know just what the spaces in your home need to look their best based on their experience with multiple homes. I talked a lot about all the things you SHOULD do before listing your home for sale, so let's go over a few things you should NOT do. 1. Don't Price Your Home Incorrectly Nothing will prevent your home from having a full schedule of showings than pricing the home incorrectly. Choosing a great real estate agent will allow you to lean on them to advise you on setting a fair market price for your home. While you may think your home is worth its weight in gold, the reality is that a competitive selling price will get you the most interest and the best sales price possible. 2. Don't Take Bad Listing Photos of your Home A real estate agent snapping shaky images of your home with a smartphone for the listing simply won't cut it. Not only does it do your home you've worked so hard on to get ready a disservice - it will immediately turn off otherwise interested home buyers if they can't even see the home. Make sure your agent hires a professional photographer as part of their marketing/listing service so your home is shown in its best light. 3. Don't go without Homeowners Insurance For simple liability reasons, just confirm that your homeowner's insurance policy is up-to-date. You don't want to deal with a lawsuit from a potential buyer if they injure themselves in some way while viewing your home. It's unlikely, but be "Better safe than sorry". 4. Don't Be Difficult about Showings If you've completed all the above tasks and listed your home, you should be dealing with lots of requests for showings. I understand showing requests can come at inconvenient times and there's nothing wrong with some compromises. However, the best plan of action is to try and accommodate every showing that comes up and make sure the house is tidy before they come! The goal is to get the house sold after all. Final Thoughts on Preparing Your Home To Sell Preparing your home for sale doesn't have to be a difficult or stressful process. Using just the info I've outlined above can create the most interest in your home by presenting it in its best light. It also puts you in the best position for buyers to envision themselves in your home and reassure them your home is in great shape to start making memories in. As a result, your home has the potential to see fewer days on market, more showings and if all goes well - several offers to consider. If you're interested in finding out if now's the right time to sell try my free home value tool to see how much your home might be worth, then get in touch for a more in-depth estimate of your home's value. Get in touch today!
What To Look For In A Starter Home
If you've been thinking about taking the plunge into homeownership, the term "Starter Home" may have popped up here and there, and for good reason. Starter homes are a smart choice for the first-time homebuyer for their affordability, flexibility, and potential return on investment. With mortgage rates still at the lowest levels in some time, potential buyers should read on to learn about the benefits of these types of homes. Starter Home vs. Forever Home - is there a difference? Starter homes tend to be more affordable homes that a first-time buyer can easily qualify to purchase with the intent to grow out of. These can be anything from a townhome, condo, or single-family home with smaller, more modest accommodations serving the basic needs of the would-be homeowner and fall within the lower end of the price range in that local real estate market. These homes are typically not your "Dream Home" but serve all your immediate needs for the foreseeable future. In contrast, a "Forever Home" or "Move-Up Home" might be big, small, cheap, or expensive - but checks all the boxes you have for a home that will meet your needs for many years - possibly forever! These homes don't have a set standard and can vary widely based on your particular needs and vision. Fixer-uppers, homes with land, new construction, etc. all fit into the forever home category if they provide the room and potential for a place to plant roots and grow. What are the Benefits of Starter Homes? Even though demand for starter homes tends to be higher and prices do fluctuate - they still tend to be at entry-level price points. The goal here is to get out of the cycle of paying rent and begin building equity. Another benefit of smaller homes is that the equity can appreciate much faster than larger, more expensive homes. Consider the fact that smaller, lower-priced homes come with a lower monthly mortgage payment, lower maintenance costs, and lower utility bills since it takes less heat, air conditioning, electricity, etc. to run the home. Your property taxes could be less as well if they're based on the sales price and getting pre-approval as a first-time homebuyer may be easier as well. What are the Drawbacks of a Starter Home? While starter homes come with lower price tags and lower costs for their upkeep, there are still some drawbacks to consider. For the starter home buyer, you're typically not planning to settle in for an extended period so there are some limitations you should be aware of. Building lasting relationships or becoming an integral part of your community can be difficult unless your next home is in the same area. If you have kids or plan to start a family, it will be hard for them to create strong friendships with neighbors or classmates if a move is in the near future. While the home is yours to do what you like with, it may not make financial sense to invest in a ton of renovations or upgrades to a home you may not live in for long so customizations will be limited. Other limitations could include less space and purchases like appliances that may not fit in your next home. Finances could also be tight as you save for a downpayment and moving expenses for your forever home. What Should I Look for In My Starter Home? First-time homebuyers who are interested in the purchase of a starter home should be committed to a practical approach to their home search as opposed to an emotional one. As mentioned before, starter homes are small, affordable places to live in the short-term so being able to differentiate between what your "Needs" are in the short term compared to what your "Wants" are for the long term will be crucial in finding a great starter home. But even though it may feel like a starter home comes with a lot of compromises, it's important to know that you should make decisions based on what works best for you. Let's take a look at some considerations you can make to make the best choice: Convenient Location Although it may be a home you live in for a short period while building equity and financial stability for your dream house purchase, location still factors into your decision. Not only does looking for a place that's near the people, work, and activities you're involved in ensure you're happy where you end up - it also helps you narrow down your choices. Consider your commute time to the places you'll frequent, especially your place of work. If you're working from home as a lot of people are these days, consider your proximity to family and friends. If it’s more important to you that your starter home has certain features available, I find this is an area you may need to be flexible in as those looking for a starter home sometimes need to compromise on location to get what they are looking for. Maintenance While starter homes will tend to be less expensive, smaller homes that cost less to maintain, I still recommend that you look for a home that's one of the better-maintained properties to avoid costly repairs down the road that might negate your efforts of saving. When the simple routine upkeep of a home can be costly, your best bet is to look for a home without the need for significant repairs or fixer-uppers. Minor repairs are one thing, but if you're considering a home that has structural issues or is going to need considerable repairs, it may be best to move on to another option. Good Housing Market Since starter homes will tend to be homes you stay in for shorter periods, it's important to research neighborhoods where home prices have remained steady or have increased over time. Even though the plan may be a shorter-term stay, you should still think long-term in regards to the home's value. Remember, you want to be able to sell this home for a profit if possible and also recoup the 2-5% in closing costs you paid when you bought. By choosing a great real estate agent, they should be able to advise you on areas that are seeing good values and also on the current housing market. In a seller's market when multiple offers are on the table, you'll want to know how to make the best offer on a home and avoid a bidding war that can price you out of your budget. Lifestyle It's easy for the emotions and excitement of buying your first home to creep into the decision-making process. Looking at homes with hardwood floors, stainless steel appliances, that extra bedroom or two-car garage can begin to tug at your senses. But keep in mind two things when considering the homes you're viewing: your goal with a starter home is to find an affordable home for the short-term, and while you should take into consideration your lifestyle - make sure it's your "Starter Home" lifestyle and not your "Forever Home" lifestyle. That being said, you should consider family, friends, work, and entertainment as mentioned when I talked about location. But here it still holds true, think more about these things than how many features the home has so you can keep your costs down to reach your home buying goals. How Long Should I Plan to Live in My Starter Home? My advice is to plan on living in your starter home for at least two to three years before considering your next move and ideally around 5 years. There are a few reasons for this: You want time to build equity in your home and it may be difficult to do so in under two years depending on how aggressively you're paying off your mortgage. Selling too soon could result in only breaking even or even losing money after the fees and expenses involved. Additionally, selling your home with less than two years of ownership could make you subject to capital gains taxes. Take advantage of tax savings from any profit you earn and avoid this by planning on a 3-5 year stay. Final Thoughts on Starter Homes As we've seen above, there are several factors to consider when looking for a starter home. The most important thing to remember is that a starter home is meant to be a short-term place to live until you've outgrown the space or are financially prepared to purchase your forever home. So when you're deciding which house to buy, ask yourself what kind of life you want to lead. Are you looking for a home that will allow you to save for retirement, a family, a bigger house? Or are you looking for a home that allows you to enjoy life now? If you want to learn more about the top homebuyer questions I'm asked or about starter homes please get in touch!
What to Expect From a Home Inspection In Charleston, SC
A professional home inspection is an essential part of buying a new home in Charleston. As the home buyer, you're made aware of any issues the home may have and it gives you peace of mind knowing that there are no hidden issues that could cause problems later down the road. But what should you expect from the home inspection process? How long does it take? And what exactly does it cover? How much does it cost? Who pays for a home inspection? In this article, I'll answer these questions and more. What Exactly IS a Home Inspection? It's important to note that a home inspection is not an assessment of a home's value. An inspection assesses the home's structural integrity, its mechanical systems, plumbing and also includes a look at the home's roof, ceilings, walls, windows, and more. Inspectors will even venture into the attics and crawl spaces - very few Low Country homes feature basements The point of a home inspection is to reveal any issues with the home itself to protect both the buyer and the seller during the process of a home's sale. What Does a Home Inspector Look For During a Home Inspection? A home inspector looks at quite a list of items inside - and outside - of the home. Let's take a look at the major categories assessed during an inspection: HVAC / Heating & Air Conditioning Systems Furnaces, air conditioning, water heaters, chimneys, and fireplaces are all inspected to ensure they function as intended and have no damage or mechanical issues. The Roof & Attic The home inspector is looking for signs of damage to your roof and attic. In the attic, they'll confirm there's proper ventilation, appropriate insulation, no evidence of a leaky roof or water damage, and also assess the integrity of the truss system. Outside, they'll check the roof for any signs of roof damage and loose shingles. They'll also check your chimney for any damage and your gutters and downspouts to ensure water flows away from the property correctly and there are no drainage issues. Electrical Systems & Appliances Inspection of your electrical system involves confirmation of proper grounding. Proper grounding is imperative to prevent overheating and fires. Circuit breakers, outlets and GFCI outlets, wiring, and even ceiling fans are inspected for proper function. The inspector will also check any major appliances for proper function and connections to ensure there are no fire hazards or electrical issues. Plumbing A complete review of the home's plumbing includes making sure sources of water including toilets and faucets have proper water pressure, start, stop and flow as expected. They will also test your water heater as well as check for damaged or leaking pipes. Homes with septic systems do not usually fall within the home inspection process, those should be inspected by a septic professional. Walls, Ceiling, and Floors Each of these items is checked to ensure they're straight and level. They're also inspected for any signs of water or other damage including cracks that could be signs of a larger problem. Foundation A home inspector will look for cracks, settling, and any other foundation damage that could lead to future issues. The inspector also checks for water infiltration, which can cause rot and mold growth. Windows and Doors Windows and doors will be checked to make sure the window frames and trim are secure and that they exhibit no cracks or rot. These items will also be tested for proper alignment - that they open and close correctly - and that they're properly constructed according to code and to prevent water infiltration. Basement or Crawlspace The crawlspace is especially important for older homes, with common issues being termite damage and water damage. Whether it's a basement or crawlspace, the inspector will be checking for signs of water infiltration or damage and pest issues. These issues can cause rot, mold, and future structural issues which can be very expensive. What are the Typical Issues That Come Up During a Home Inspection? A home inspector's job is to be objective and make note of any items that are less than ideal. Because of this, it would be a rare case indeed if you receive a blemish-free home inspection report. Cosmetic flaws and minor repairs, like missing pull chains on ceiling fans or broken blinds are common items. Brittle, broken shingles, or flashing on the roof. Soil grading that causes water to drain improperly away from the home. Safety issues with electrical wiring such as damaged receptacles, missing junction boxes, and reverse polarity. Sagging floors, door headers, and rafters in older homes. Peeling paint, missing or damaged caulking. What are Some Costly Issues To Look For During a Home Inspection? Sticking windows and doors, cracks in the exterior foundation, cracks above doorways can all be potential signs of a foundation problem that could be costly to repair. Damaged plumbing pipes, leaks, and poorly draining sewage lines are potentially costly repairs. Older homes can use materials prone to failure. Termites and other wood-eating pests are a concern in the Low Country and can result in significant structural damage if not addressed. While a home inspector can identify signs of an infestation, a termite bond (CL100) is typically required from a pest control company in our area. Excessive moisture and water damage in the crawlspace is typically a sign of water leaks or poor drainage from the home. This can cause issues that can be expensive to remediate. What Repairs are Mandatory After a Home Inspection? After receiving the written inspection report you and your real estate agent can decide on certain items you want to be repaired before moving forward with the home sale, but there are some key areas to focus on. These will include issues like structural or major systems defects and building code violations - anything that posts a safety concern with the home like foundation or structural defects, roofing issues, HVAC repair or even replacement, major electrical system defects and plumbing system defects. How Long Do Home Inspections Usually Take? You can expect the home inspection to last between 2-4 hours. You want a thorough review of the home and a good home inspector will take their time. You can also expect the complete written report within 24 hours depending on how busy the inspector is. Should I Attend the Home Inspection? As the buyer, it's important to attend on inspection day so you have a chance to view the home in more detail. This also allows you to ask questions during the process so you'll have a better understanding of the home and any potential issues that come up. Also, when choosing a real estate agent to represent you, choose one who states they're always present during the home inspection. How Much Does a Home Inspection Cost? Home inspections can vary slightly in cost from inspector to inspector and the size and age of the home, but the average cost in the Charleston, South Carolina area is between $400 and up. Who Pays For Defects Found During a Home Inspection? Once the repair request is submitted from the home inspection, the seller and the seller's agent will review the details and make any offers to pay for certain repairs, offer cash credits at closing to cover some or all repairs, or even refuse to make repairs altogether. If the buyer decides to request repairs, the buyer’s agent will submit a repair request. Depending on the way the contract is written, If the seller refuses to make repairs, you may have the option to pull out of the sales contract and have your earnest money returned. However, the seller will typically be on the hook for any repair costs affecting the safety or health of the home's future owners. An exception is in the case of an as-is sale where the home inspection is for information-only purposes for investment properties, or in a seller's market where there are multiple offer situations. In this case, there's no inspection contingency clause in the sales contract for the home inspection and the buyer waives their right to back out of the sale based on the information contained in the inspection. Final Thoughts on Home Inspections The home inspection is a critical step in the home buying process, but it can also be a very stressful time for you as the buyer. It's important to remember that the inspector is looking out for problems that may not be apparent to the buyer and being thorough is expected. So, don't freak out if the detailed report contains a lot of items! A good real estate agent will be able to walk you through each item in the report and advise you on which items are critical and which are minor issues. Not only that, you should lean on your real estate agent for suggestions on how to proceed with repair requests in the negotiation process based on the inspection results. If you have any additional questions about the home inspection process, contact me - I'm always happy to help! -Ashley Melton, Realtor®
A Guide to Pre-Approval for First-Time Home Buyers in Charleston, South Carolina
For first-time homebuyers, one of the last things you want happening is to find an amazing home only to discover you can't afford it based on the amount a mortgage lender is willing to loan you. The pandemic has made being prepared and ready with an offer crucial to the home-buying process. Available home inventory is at all-time lows and homes that hit the market go quickly. Receiving a mortgage pre-approval prevents you from being house-poor, keeps your monthly mortgage payments manageable, and can put you at the front of the line when making an offer on the house of your dreams. What is Pre-Approval in the First Place? In the most basic terms, mortgage pre-approval is when a mortgage lender provides a written statement that the approved party or parties will be granted a loan amount pending approval from the underwriter. A more detailed definition from Realtor.com is when, "...a lender probes deep into your financial past, checking out your income via W-2s, debt-to-income ratio, credit score, credit report, and other factors that help it determine whether or not to give you a mortgage loan and how much money you stand to get." [Realtor.com] Why is Pre-Approval So Important for Home Buyers, In General? For a home buyer, pre-approval is important so you know the price range you're qualified for. It eliminates the guessing game and allows you to focus on appropriately priced homes. And just as important, that written statement from a mortgage lender (also known as a pre-approval letter) can strengthen a buyer's offer, making it more attractive to a seller. An above asking-price offer from someone without a pre-approval letter can be less attractive than one at or below the asking price from someone with pre-approval in hand. The seller knows that issues arising during the negotiation stage are likely decreased because the buyer's taken the time to qualify for the purchase of the home. "[Pre-Approval] eliminates the guessing game and allows you to focus on appropriately priced homes." Why is Pre-Approval Important Specifically for First-Time Home Buyers? For first-time home buyers, pre-approval is important for the same reasons mentioned above. But, knowing how much home you can afford and tempering your expectations make your home search a much smoother process. There could be some credit issues that need to be cleared up in some cases, so it's better to know this at the beginning of the process. What Are the Steps of the Pre-Approval Process? The process of getting pre-approval doesn't have to be difficult and confusing. It's simply a matter of having your required documentation ready. There are 5 types of information regularly required to get a mortgage pre-approval. Once you contact the mortgage lender, the following information is usually going to be requested: 1. Proof of Income The two most recent years' tax returns, W-2 wage statements from the previous 2 years, recent pay stubs that show income including year-to-date income, and proof of any additional income sources like bonuses, alimony, side-hustles, etc. 2. Proof of Assets As the borrower, you'll need to prove to your lender that you have adequate funds to make the downpayment and cover the closing costs of the home. Bank and investment statements will be required and also provide proof you have cash reserves. The percentage of the downpayment will vary by loan type, but the standard is typically 20% of the home's sale price. If your financial situation makes a 20% deposit unlikely, most borrowers will require you to purchase PMI, private mortgage insurance, a mortgage insurance premium, or a funding fee. A buyer's FICO credit score and debt-to-income ratio (DTI) are also factors in pre-approval. Also, if a friend or family member is helping you with your downpayment, you'll most likely need a letter from them stating the funds are a gift and not a loan to avoid adding to your perceived debt. 3. Good Credit Credit scores of 620 or higher are usually required to get a conventional loan with scores 760 and higher reserved for the lowest interest rates. If you're considering an FHA loan, the folks from The Mortgage Reports say, "Although FHA allows credit scores as low as 580, lenders may set their own, tougher guidelines...and credit requirements may be subject to change from time to time, as we saw at the height of the pandemic." [themortgagereports.com] However, just because your credit is less than ideal doesn't mean a loan or pre-approval is out of the question. Most lenders will work with buyers that have low credit scores to suggest ways to improve their scores over time. Buyers with lower credit scores typically must make larger downpayments, so keep that in mind. 4. Employment Verification The main reason lenders require employment verification is to make sure the borrower has steady employment. Pay stubs are one requirement, but lenders may also call the employer to verify, even calling your previous employer if you've recently changed jobs. If you're self-employed that's no problem, it'll just require a bit more paperwork proving the stability of your industry, your income, and the likelihood the revenue will remain consistent. 5. Other Documentation Your driver's license, social security number, and a signature will be required to pull your credit report. In some situations, additional information may be needed and simply being flexible to locate the information promptly will make for a smooth pre-approval process. Does Buying a Home in the Lowcountry Affect the Pre-Approval Process? Whether you're looking for a home in Mount Pleasant, Summerville, Goose Creek, West Ashley, or other locations in the Lowcountry, the above process is no different. However, the final monthly payment COULD be affected based on the location of the home. Taxes and insurance will play a role in the monthly payments and those things can be affected depending on the area of the Lowcountry where you're doing your home search. A lender will estimate these numbers for you based on the price range. Some locations will have higher insurance rates than others and will affect those monthly payments. The same goes for regime fees for condos, so it's important to keep these things in mind as it could create payments that you as the buyer are not qualified for. "Taxes and insurance will play a role in the monthly payments and those things can be affected depending on the area of the Lowcountry you're doing your home search." What is the next step after a first-time homebuyer receives pre-approval? Based on your time frame for purchasing a home, you should start the home search once you receive your pre-approval letter. In the current market, a home seller is not going to readily consider a contract with a long closing time. Sellers will be looking for 45 days or less to close once an offer is accepted. If a first-time buyer is in a lease, the time frame needs to reflect that. Today, a home on the market won't be available if the buyer needs to wait for the lease to end to close on the home. Additional Information Important for First-Time Home Buyers Among a few common mistakes first-time homebuyers make, not paying attention to your debt-to-income ratio is one of the biggest. Some buyers will qualify but by a very small margin. It's important to pay bills on time and not add to your debt if you're actively looking to purchase a home. Even after you've been pre-approved, making large purchases such as a car or even appliances for your new home can cause issues once the official loan process is underway. It's best to check with your lender before purchasing anything with credit once you've been pre-approved, just to be safe. "It's best to check with your lender before purchasing anything with credit once you've been pre-approved, just to be safe. " As mentioned before, a buyer may have funds gifted to them by a family member to assist with the home purchase. Make sure this is known at the beginning of the pre-approval process. Your mortgage lender will know the proper steps for gifting funds. Finally, you don't have to go through this process alone. A licensed Realtor® will be able to help you through the process to avoid obstacles and stress in this crucial first step to buying a home. If you're considering taking the first step in buying your first home, contact me today to discuss options.
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