Real Estate Information Archive

I found Greenville's hard work and ingenuity all the way up in Illinois!

During a recent trip up to Illinois and back we were able to drive from the Northern end of the state back down through central Illinois on secondary highways. As we drove I was reminded of my farming roots as I watched farmer after farmer out in their fields cultivating or planting their crops for the '09 growing season. It seems that the tractors continue to get bigger and the planters, plows, and disks continue to get wider, but the peaceful view rekindled warm memories of the Midwestern farm.

But soon on the horizon, we encountered a farm of a different kind! Standing far above the coming corn or bean crops of the prairie state, we found two huge groups of  wind farms! Like flower buds, standing far above the fields, stood turbine after turbine. It seemed that the field of wind turbines went on and on, each one turning slowly in the gentle breeze of the evening.

Many of us have seen pictures in a magazine or read about "Wind Farms." Now I've seen them for myself and let me assure you that they are bigger and more mighty than a picture can depict.

All the way up in the Midwestern farm belt, each wind turbine took up only a small footprint of space in the field that will soon be turning green again with the long-time customary crops of the region. But today those crops will be supplemented by a new crop. A crop of Greenville, South Carolina's ingenuity, hard work, and Greenville's investment in clean air and clean power.

Now, with a warm heart for my Midwestern roots, I was reminded of how proud I was of Greenville, South Carolina.

1. If you’ve been considering a move, this market window is perhaps one of the best possible opportunities to take great financial advantage of market forces and buy a home now. Even nationally known financial advisor and radio show host, Dave Ramsey recently said, “…this is the best time in 40 years to buy a home.” The low interest rates in our already affordable upstate market will maximize your buying power more than ever before because low interest rates equals lower monthly payments. Today is an incredible opportunity to apply these historically low rates to a home purchase and enjoy the fruits of your low mortgage payment for the next 30 years! We even have even compiled a list of home available with 100% financing, plus if you’ve not owned a home in the past three years we can show you how to get your part of the Economic Stimulus Package with an $8,000 tax credit!
2. If you feel you may need to consider a move in the next 2-3 years,  due to any kind of expected changes in your housing needs – downsizing, upsizing, etc. SEE NUMBER 1 ABOVE!
3. If you are currently renting.  SEE NUMBER 1 ABOVE!
4. If you are perfectly satisfied and enjoying your current home – I recommend that you look at your current mortgage interest rate and consider if it may be in your best interest to refinance at today’s lower rates. Please feel free to call and I can put you in touch with someone who can help you determine if it is in your best interest to refinance.

During these cold winter months, are you noticing your utility bill is higher than you would like?  If your answer is yes, please read the following winter energy saving tips from Duke Energy.

 

Heating

 

v     Your home’s heating and cooling system make up about half of your total annual energy bill, with that in mind, Duke Energy recommends having your heating equipment checked every winter season by a qualified technician.

 

v     Try to keep your thermostat at the lowest comfortable setting.

 

v     Change air filters every month.

 

v     Make sure that the heat registers in your home are not blocked.

 

Insulation

 

 

v     Make sure your home is adequately insulated.  Proper insulation can dramatically reduce your power bill.

 

v     Weather-strip around doors and windows.

 

Household Tips

 

v     Insulate your water heather with at least R-6 insulation.

 

v     When it is nice outside, open your curtains to let the sunshine in which will warm your house.

 

v     Reverse the direction of your ceiling fan and it will push warm air down.  In the winter, the fan should turn clockwise.

 

By doing a few of these simple things, you should be able to save on your energy bill.

 

For months now we have been pelted  with "National News" about the down real estate market, the economy, etc.   We've heard all kinds of words and phrases that have stuck in our minds. Some of those things have only been questions, yet even questions can give us an uneasy feeling or fear. There has been the "real estate bubble" thing, the "down market", "dropping home prices", and one of my favorite (or least favorite perhaps) is that "the real estate market has tanked"! The list certainly goes on... 

Even the local Greenville News recently took the opportunity to jump into the game and use fear mongering to try to sell papers (as if we need more negativity dropped on our doorsteps each day!). In their radio ad, aired on local W.O.R.D., they had a recording of a person fearfully saying that gas prices are so high it has locked up her budget and then another person is heard dispairing that, "here I thought that home prices had bottomed out, now what do I do?" The inferrance of this second person seemed to be that home prices still had not bottomed out!

Well, here is a NEWS FLASH: Home prices have not even dropped here in Greenville! Yet here is our own local news source spreading misleading information on "talk radio" in the form of a radio advertisement! May I suggest that in answer to this lady's particular question, "what do I do?" I say, what you don't do is order The Greenville News!

So where are we? What is going on here in Greenville on the real estate front? How do we as homeowners respond to our market in such a way as to be good stewards of our money and resources in general? Is now a good time to buy or sell homes? Are banks even making mortgage loans now?

I will begin to answer a these questions in this article and continue with others over the next few days and weeks to come. There is a good chance that, based on what you've probably been hearing in the National news, you'll be surprised by what you read here!

Let's start by saying that "real estate" is a local economy and "local" real estate trends are effected by the local economy and forces that are local in nature. What happened or is happening elsewhere may not by necessity happen here. If you recall hearing about sky-rocketing home prices in other markets around the U.S. a few years back and felt left out at the time, perhaps you feel better knowing that, while homes there are moving back down to where they are affordable in those places, we in Greenville are NOT participating in the misery! (Watch for more on this later.)

Prices have continued to move up in Greenville over the past year but at a slightly reduced rate. My estimate would be more like a 2-3% annual appreciation rather than a more typical 3-4% annual rate. The most recent statistics from the Greater Greenville Association of Realtors (GGAR) shows home sales down about 20% year-to-date, from the same period one year ago. However, the average number of days on the market for "Sold" homes is now up to about 98 days, only about 5 or 6 days above last years average! The local real estate market is only slightly changed from a year ago and nothing in that change seems to dictate any significantly different behavior from that of a year ago.

The Greg Jansen Team listings continue to sell in an average of about 45 days due largely to our staff and our ability through our increased staffing and technology to make effective use of internet marketing and technology enhanced marketing. We are also thrilled that our average sold price to list price ratio is also about 4% higher than the GGAR average. We are proud to be able to bring these great values to our client's bottom line during one of the biggest financial transactions they make.

If there are any questions or comments about how the real estate market may effect a decision you are considering now or in the near future, please don't hesitate to call us. We will continue to gather and provide the real truth to what is happening in our real estate market and how it effects you!

One common protection afforded the home buyer that is written into the “Contract for Sale” used by the local Association of REALTORS is the appraisal process. Our current “Contract of Sale” reads as follows: “The contract is contingent upon the property appraising at or above the sales price as determined by lender’s appraisal or other appraisals obtained by the Purchaser.” The appraisal plays an important role in protecting the purchaser by providing one more level of objective and educated opinion of value.

Unfortunately, many buyers purchase and close on their home, assuming that an appraisal was done, when in fact no appraisal was completed to confirm the property value.  Worse yet, they may have paid $300-500 at closing for an item that was to include the appraisal fee.

So, what went wrong?

First, we need to understand that the “Contract of Sale” is between the buyer and the seller and the lender is not a party to the contract nor are they obligated by conditions set forth in the contract. Further, most lenders view the appraisal process as a step that will protect them should the purchaser default on the loan. So, what happens when the purchaser has really good credit or puts a substantial amount of down payment on the house? In this situation many lenders may choose NOT to do a full appraisal, choosing rather to run the home through “desktop appraisal” process.

The desktop appraisal or “Automated Valuation Model” is a process where someone compares the property as listed by tax records or at best in MLS information and makes a judgment based on average home values in the neighborhood, etc. Many important steps to an accurate valuation are missing, a personal visit to the property to observe current condition and updates, an accurate measurement of the home, and a careful accounting of the home’s features compared to features of comparable homes, to name a few.

Suppose you wanted to purchase a car and determined that you wanted to first check the “Blue Book” value on the vehicle you were interested in purchasing. Now armed with the Blue Book value would you be prepared to buy a car from the Classified Ads without first going to check it out to make sure it is the same car and in the same condition as the Blue Book assumptions? I think I know the answer! But that is about how much thought many banks have given the “appraisal” process on many home purchases while the buyer sits back and pays the fee on the HUD statement with a misplaced confidence that the bank has confirmed the value on their home.

One step The Greg Jansen Team completes for all of our purchasers is a confirmation of the appraisal process. First we confirm that a full appraisal was or will be completed for each buyer unless the buyer agrees to have that step dropped from the process. Second, we ask the lender to drop the fee from the HUD statement if a full appraisal is not completed on the home. Finally, we request that a copy of the appraisal be provided to the purchaser at the closing. These steps serve to protect the buyer and further prove the accurate value before they make one of the biggest investments of their lives.

1. Write the item in as a condition when writing the contract. Ex: “Seller will replace the kitchen window which has lost its seal.” Or “Seller to replace fuse box with a 200 AMP breaker box.”
2. If a “well worn” but functioning item would be covered by a typical home warranty, consider asking the seller to pay for a home warranty or pay for one yourself. Note: Most home warranties only last for one year but are renewable annually thereafter.
3. Write the following language into the “Contingency” line: “Contract contingent on buyer approval of the property condition based on inspections.” This language effectively gives the buyer additional leverage so that, if an item is found during inspection that the purchaser feels is a major issue, they can try to negotiate that repair or at their discretion, void the contract and have their earnest money returned.

1. Write the item in as a condition when writing the contract. Ex: “Seller will replace the kitchen window which has lost its seal.” Or “Seller to replace fuse box with a 200 AMP breaker box.”
2. If a “well worn” but functioning item would be covered by a typical home warranty, consider asking the seller to pay for a home warranty or pay for one yourself. Note: Most home warranties only last for one year but are renewable annually thereafter.
3. Write the following language into the “Contingency” line: “Contract contingent on buyer approval of the property condition based on inspections.” This language effectively gives the buyer additional leverage so that, if an item is found during inspection that the purchaser feels is a major issue, they can try to negotiate that repair or at their discretion, void the contract and have their earnest money returned.

• Remember! All inspectors are human, so on occasion they miss things.
• You will become more “intimate” with your home over the years you live there than the inspector will in the few hours he’s there. Expect to run into a few minor items over time that he missed!
• Should they miss something, most general home inspectors limit their accountability to the cost of the inspection. Thank you very much!
• General Inspectors are GENERAL Inspectors! Most general home inspectors do not inspect specific components such as heating and air conditioning as thoroughly as a technician hired from that specific industry to do a specific inspection. If you have concern about any specific system of the home, consider hiring a specialist to inspect that item.
• Make sure to ask the inspector if there are any systems or components of the home for which he will not be able to inspect and give an official opinion of condition. Don’t wait until the inspector arrives only to find that he does not feel qualified to give an opinion on an important component of the home.
• Remember that all inspections must be accomplished and requested repairs turned into the seller in a limited amount of time as specified by the contract.
• Consider whether it may be appropriate to hire a specialist to inspect one or more of the following components. Those listed in bold are components we have experienced to be more problematic within the realm of general inspections over the years because they require a special knowledge level and/or special equipment to do a complete inspection.
  • Fireplace/chimney
  • HVAC
  • Stucco
  • Roof
  • Structure
  • Plumbing
  • Electrical
  • Septic
  • Well/water

Adverse Conditions that Might not be Covered by the Contract and How to protect yourself: You should be aware that the language of the contract excludes certain items and conditions commonly found in homes that might adversely affect the condition, costs, or future enjoyment of the home you are purchasing. Be aware of these things as you view homes. A partial list of things that are not covered and thus bear further consideration depending on the age of the home you purchase are:

o     Certain Roof Conditions: The contract only dictates that the roof be free of leaks. A roof can be near the end of its life yet not require replacement per the contract. Even if there are leaks the seller could elect to repair a worn out roof instead of replace it.

o     Double pain glass that has lost its seal.

o     Appliances that are near the end of their useful life.

o     Old heating and air conditioning systems that are near the end of their useful life or are no longer efficient.

o     Antiquated electrical wiring conditions that may pass inspection from the standpoint of safety but never-the-less be deemed obsolete. Such as:

o     Fused wiring systems that have not yet been upgraded to breaker boxes.

o     Two wire outlets.

o     Knob and tube wiring systems.

o     Unusual requirements due to the health or allergic conditions of a family member.

o     Other: _________________________________________________________

 

Especially older homes are more likely to have one or more of the conditions listed above so if any of these are of particular concern to you as purchaser make note of them. Many times a visual observation of the above systems will give you clue as to whether there may be reason for additional attention. Consider using the above list as a checklist when you consider making an offer on a home and discuss with your buyer’s agent how you can protect yourself from surprises.