Foreign buyers snap up U.S. real estate

With the Dollar down 2 to 1 Euro, it definitely makes real estate look like a steal for Europeans. See link below for USA today link to this article.

http://www.usatoday.com/money/economy/housing/2008-04-23-home-buyers-foreign_N.htm

So the question is where do you find an international buyer for your home?
http://www.leadingre.com/

I'm proud to announce my new affliation with The Leading Real Estate Companies of the World, the largest global real estate company already established in 38 different countries with 700 firms and 5,000 offices and 145,000 associates and growing!! Not to mention, Leading RE gives buyers access to over 2 million properties worldwide! Last year Leading RE companies outpaced our previously national affilate by 2.5 times! With over 1.3 million transactions valued at over $400 billion annually -this is more than ANY other real estate network. The Internet has made the world smaller and increased the need to expand out of the national market into the world wide market. This new partnership will immensely benefit our clients with global exposure while also allowing the indpendence of a local company to better respond to local market trends. Our new local name has been changed to Carolina One Real Estate because Carolina is who we are and we are Number One!

Higher credit standards

Fannie Mae has tightened standards for the home mortgages it guarantees or buys and there are no longer any 100% options available in conventional financing. Minimum credit score of 620 is required for most loans but requires a minimum 5% down payment. Credit scores range from 300 to 850. Even credit scores up to 700 are starting to receive rate adjustments with loan to values greater than 90%. NO DOCS loans no longer exist. In the past, Fannie had no minimum score. Fannie also told lenders it will increase the period needed for borrowers to re-establish credit history after a foreclosure from four years to five. Fannie said it would allow shorter recovery periods for borrowers with "documented extenuating circumstances" that caused the foreclosure. There are many changes in the mortgage world that will affect buyers and this means it will affect a seller's ability to sell. There are only 2 options left for 100% financing. VA and FHA loans are possibilities. You must be a military member or veteran to qualify for a VA loan. In order for a buyer to get 100% financing through FHA, the seller must be willing to contribute the buyer's 3% downpayment through a downpayment assistance program and in most cases, contribute a 3% closing costs concession as well. Not an easy pill to swallow for many sellers, but without being willing to do this, it will minimize your buyer pool at this time.

5 Signs of a Housing Market Pickup

There are several signs that the market is improving that you can’t miss. It starts with activity in the real estate office when new customers are ready to buy or sell. Other indicators like days-on-market, new listings per month, and new contract activity — that will indicate a sales turnaround is imminent.
Here are the top 5.

1. Fewer Builder Concessions : New-home builders in your area, as a sign of new confidence, to curtail their offerings of free mortgage payments, new toasters, designer landscaping, and other concessions they rolled out at the start of the downturn.
2. New Jobs vs. New Housing: Historically, one new home owner is created for every two new jobs, so if job creation continues in your area and builders are scaling back on production, it’s just a matter of time before the supply and demand equation moves toward equilibrium.
3. Months’ Supply: The country had about a 10-month supply of housing at the end of last year, but the figure you’re interested in is the months’ supply for your market. The historical norm is closer to six months. We currently have a 15 month supply over all Charleston MLS, but different sub areas and price points have much shorter supplies.
4. Visitors per Listing: Look at the visitor trends tracked by your local MLS using today’s computerized lockboxes. For the last six months in Charleston, the average showing per listing has been 2.5 showings.
5. Rising Apartment Rents: Healthy rental rate increases show strong demand for rentals, but if such increases go on for too long or rates rise too steeply, renters will start inquiring about buying.

Source: NAR Research

Bad MLS photos

Photos Help Sell Homes. These images serve as the first impression, and buyers often decide whether or not to see a home in person based on their quality and presentation. Research reveals that the more photos a listing has, the quicker it sells. The photos to be used in an agent's marketing materials should be taken by a professional, with experts noting that sellers will recoup the costs of professional photos if their homes sell faster and at a higher price. Your agent must have a good eye for photos and a good camera!

In my opinion, the most important marketing piece to selling your home is the MLS photos!
This link explains why...
http://www.reagentinct.com/category/bad-mls-photo-of-the-day/

For more information on how to prepare your home for MLS photos, email me at michele@CharlestonRelocationExperts.com

S.C. is a tax haven

The March-April 2008 issue of Where to Retire Magazine includes a feature article entitled “Tax Heavens and Hells”, (pgs 74-84) which lists the best and worst areas for taxes after retirement age. South Carolina is the number #1 tax-friendly state for retirees! What made this report so significant is that the research included all taxes—income (if applicable in each location), state, and local. Here is what WTR had t o say:

“South Carolina has come on strong as a retirement destination, with a moderate climate and coastal, mountain and lake destinations. (It) gives generous tax exemptions to those age 65 and older, the major factor in its rankings. While it has a state income tax, those age 65 and older get a retirement income deduction of up to $10,000 per person and social Security benefits are exempt. There’s also an age reduction up to $15,000 per person 65 and older, though this is reduced by any retirement deduction taken. Additionally, for property taxes, homes of residents are assessed at 4% of market value. For those age 65 and older who have been residents one year, there’s a homestead deduction of $50,000 off the market value and a $100,000 deduction off the market value for a portion of the school operations levy. The results: mini mum, if any state income tax paid and low property taxes.” (WTR, March-April, 2008, pg. 82)

Ignore the headlines!

It's conventional wisdom that you buy low, right? There are some buyers still sitting on the fence waiting for prices to potentially drop more. There are many things waiting buyer have not considered. One will be the rising finance costs when the housing market bounces back. Let's consider interest rates 1 year ago at 5.5% on a $200,000 home. With a fixed mortgage and a 20% down payment, the monthly payment is $908.46. Let's fast forward to today. Hypothetically if that home were to have a 5% price drop to $190,000 and the rate rises to 6% when the non existent recession ends. With the same down payment, your monthly payment is $911.31. By waiting one year, you saved $NOTHING and you spend one year living in someplace you didn't want to be. Generally, over any given five-ten year period, the average appreciation rate of property has been between 6-8%. So what are you waiting for?

How to sell quick in a slow market

The average sold listing in our market is selling in about 90 days, yet the active listings have been on the market for an average of 168 days. If you are a seller, I'll bet you are wondering, how do I get on the 90 day ride?

Even in a slow market, some houses sell quickly — for the same reasons they do in a booming market, whether is Charleston or any other market. An analysis shows that fast sellers in a slow market have three common denominators:

1. They are not overpriced. They're priced better than comparable listings, sometimes1-2% below fair market value.

2. They show like model homes from the outside to the inside. They have curb appeal galore. There's no clutter or oversized furniture and they are clean and neat. They have simple upgrades that set the home apart from others.

3. They have a full force of marketing behind them. This includes enticing and inviting photos, internet exposure, and other valuable resources that buyers use in their home search.