Hagerty Homes

Spring is here, as is the busiest time of year for the real estate market. As home sellers begin preparing their homes for sale, there are a few tips one should know about showcasing a vacant house. Click here to read 5 useful tips about selling and staging a vacant home for sale.

Spring is finally here and along with the beautiful weather, we will begin to notice an increase in home sales throughout Charleston. Click here to read an article from the Charleston Association of Realtors with statistics about Charleston home sales on the rise.

The volume of existing-home sales is expected to remain stable through late spring, with a gradual recovery during the second half of the year as the mortgage situation improves in high-cost areas, according to the latest forecast by NAR.
NAR’s chief economist says many buyers have been waiting for higher mortgage loan limits. To read more about this issue, click here.

If you’re considering selling your home, the first step is to consult a Realtor®. Your real estate professional with provide you with a market analysis and help you prepare your home for the homeselling process. Please contact Elise Hagerty at 843-670-5996 or ehagerty@prucar.com for a free market analysis. Click here to find out how to save time and money in the homeselling process, as well as tips to enhance the salability of your home.

If you are thinking about selling your home, there are a few important steps that will facilitate the process. Click here to see a list of items that can help improve the curb appeal and overall attractiveness of your home. Please feel free to contact me at 843-670-5996 with questions  or for additional information about selling your home.

The National Association of Realtors recently surveyed 2,530 homebuyers to find out what buyers would pay for the following upgrades to a home. This is what they found:

~ 57% of homebuyers would pay $1,900 more for hardwood floors

~56% would pay $1,660 more for high-end kitchen appliances

~56% would pay $1,670 more for granite or similar countertops

~46% would pay $1,220 more for a fireplace

 For homeowners who want to create an exceptional or upscale look for a home’s modest interior, something as simple as painting can have a huge impact. Moulding and other trim also creates a contrast and bold lines that will open up a room.

Home industry experts say that the most popular remodeling projects today are kitchens and baths. These features always seem to top the list because they usually bring the greatest return on investment when it’s time to sell.

“Remodeling Rule of Thumb” - Remodeling investment should not raise the value of your house to more than 10-15% above the median sales price in your neighborhood. After all, it doesn’t pay to be the most expensive house on the block!

For more information on remodeling tips and whether to skimp or splurge on upgrades in your home, please contact me anytime at ehagerty@prucar.com.

In today’s market, buyers have bargaining power – they have time to research their purchase and sellers are especially motivated to sell. However, many are faced with a big decision: Buy now at a great price, or wait to see if prices continue to slide.

If your goal is to retire in a decade or so, and if you can afford to buy now, you may have a great opportunity to live out those retirement investment dreams now! Click here to read an article from TIME Magazine, explaining the many reasons why it is a great time to buy your retirement house now – even if you don’t plan to live in it for years.

Travel over the 2.5 mile Arthur Ravenel Bridge from downtown into Mount Pleasant and experience the thriving local economy and modern-day amenities of one of the fastest growing cities in the United States – Mount Pleasant. In fact, Mount Pleasant’s population has significantly increased over the past few years, growing from over 47,000 in 2000 to approximately 60,000 in 2006.

Owning real estate in Mount Pleasant offers many buyers the same benefits of owning real estate in downtown Charleston. Citizens and town planners of Mount Pleasant have worked diligently to preserve the rich heritage and small-town appeal, while still lending the feel of a larger city. In fact, in 2006, Mount Pleasant was named one of the nation’s “Best Places to Retire” by CNNMoney.com. 

Mount Pleasant real estate owners can enjoy a bike ride through the grand oak-lined streets of the charming Old Village, and end the day chatting over cocktails dockside at one of Shem Creek’s many waterfront restaurants. The tremendous rate of appreciation of Mount Pleasant real estate during the last 15 years appeals to many of those interested in moving to the Charleston area, or owning a second home there. High-end Mount Pleasant real estate has been a particularly great investment over the last decade. Clearly, Mount Pleasant real estate offers the best of both worlds: the historic ambience of downtown Charleston and the modern-day conveniences of the rapidly developing town. Despite the national downturn, the local real estate market in and around Mount Pleasant remains healthy.

As you may have heard, the Federal Open Market Committee (FOMC) lowered the discount rate by .50% today(from 6.25% to 5.75%). The Federal Reserve Board said it was acting to “promote the restoration of orderly conditions in financial markets.” While this will have little or no impact on consumer and commercial interest rates and credit, what it does is allow for financing institutions to borrower money at a lower rate of interest enabling investors like Countrywide to borrower funds cheaper and keep operations alive. This is a temporary, short-term solution.

Countrywide had to borrow $11.5 billion early this week and economists believe that may be enough to avoid a Chapter 11 Bankruptcy.

The Federal Funds rate (known to us as PRIME) remains at 8.25% (5.25% for financial institutions - 8.25% for consumers) but look for it to decrease to 8.00% on Sept 18th.

A cut to the Fed Funds rates will have a positive impact on the rate at which consumers and commercial lenders borrower money.

If you have a home equity line of credit tied to prime, your rate would decrease by .25% lowering your monthly payment.

Since the housing and credit bubble began to unwind, dozens of lenders have gone out of business, several hedge funds have failed and thousands of homes have gone into foreclosure.

The Fed’s move is a positive note and implies that the Fed realizes a need to intervene. To date, they have poured billions into the market attempting to avoid a market “stall” and now cutting the discount rate by .50%.

This is taken from an original article by  Bill Bronchick on REIClub.com.

Real estate, like any other commodity, is bought and sold every day of the week. Many people become real estate agents because they know a small piece of a large pie means big bucks. Agents help facilitate a sale by finding a willing buyer for a willing seller, earning a commission of approximately four to seven percent of the sales price for making the deal happen.

It is relatively simple to get a real estate license, and it is a lucrative field for many people. However, as you may expect, there is strong competition among agents, and the ones that are successful work long, hard hours. In fact, most agents are on call weekends and nights, with their cell phones glued to their ears. Furthermore, real estate agents are required to take continuing education classes and follow strict guidelines set forth by bureaucratic agencies. There are better ways for an “entrepreneur” to make a living!
The Flipper
Investors that “flip” houses accomplish the same basic task that real estate agents accomplish. Specifically, the “flipper” investor buys real estate with the intention of immediate resale for profit. As a flipper, he buys properties at substantially less than the going or “retail” rate. He acts as both principal and middleman, buying at one price, then reselling at a higher price. If a deal is marginal (not much profit) and he adds no value to the property, the flipper’s profit is commensurate to that of a real estate agent. However, unlike an agent, the flipper may only have a few hours of his time tied up in the deal. Furthermore, the flipper’s upside profit potential is much higher than an agent’s commission, since an occasional bargain purchase can bring a tremendous return.

The flipper does not need a license to practice, nor is he under the oppression of a government agency. He benefits from low overhead, flexible work hours and he doesn’t have to drive a Mercedes to be taken seriously (although he can certainly afford one).

Three Different Types of Flippers
There are three different types of flipper investors, usually based upon experience:

• The Scout
• The Dealer
• The Retailer

The Scout
The Scout is an information gatherer. He is the “bird dog” who finds potential deals and sells the information to other investors. Many people get started as a Scout for other investors because it does not take any cash or prior knowledge to look for distressed properties. The Scout finds a property for sale, gathers the necessary information, and then provides this information to investors for a fee. The fee will vary depending on the price of the property and the profit potential. The Scout can expect to make five hundred to one thousand dollars each time he provides information that leads to a purchase by another investor.

The Dealer
The Dealer, like the Scout, locates deals for other investors. He locates a bargain property and signs a purchase contract with the owner. He then has the option of closing on the property and selling it outright, or just selling his contract to another investor. He is providing more than just information; he is controlling the property with a binding purchase contract. The Dealer often puts up earnest money to secure the deal, so he assumes more risk than the Scout does. Since the Dealer controls the property with a purchase contract, he has greater profit potential than the Scout does.

Dealers can flip as many deals as they can find. On a full-time basis, a Dealer can make well over fifteen thousand dollars a month without ever fixing a property or dealing with a tenant. On a part-time basis, a dealer could easily make an extra three thousand dollars a month flipping a property or two. The dealer’s lifestyle is that of a true “entrepreneur.” He can work as much or as little as he likes, with no boss, no employees and the freedom to do as he pleases!

The Retailer
The Retailer usually buys properties from a Dealer or with the assistance of a real estate agent or Scout. The Retailer’s goal is to fix up the property so he can sell it for full retail price to an owner-occupant. Compared to other flippers, the Retailer puts up the most money, has the most risk and stands to make the largest profit on each deal. However, it may take the Retailer months to realize his profit, unlike the Scout or Dealer who makes his money in a matter or days or weeks.