Real Estate Information Archive
Displaying blog entries 1-9 of 9
I've been on alot of listing appointments that the Seller wants to price their home high and I've worked with lots of buyers making ridiculous low offers. Who's right?
We all want your house to sell and we want it to sell quickly, but in our current Buyer's market, houses need to be priced right from the start. Buyer's today are very educated with all the technology at their fingertips. They can see what has sold recently, how much you paid for the place, how many days your house has been on the market, and usually find out your personal circumstances, too (i.e. estate sale, divorce, relocation, downsizing, etc ). If your house starts too high, you'll be on the market for a very long time and become like stale bread. Price it right and you'll be at the closing table sooner than you think.
Speak with your Realtor today to make sure you have your house priced right for today's market.
740 Windchime Way
Located in Seneca, South Carolina this home for sale offers 2.5 acres placed in a wonderful country setting. With great craftsman curb appeal, 3 BD/2.5 BA, Elegant Kitchen w/ Stainless Appliances, Formal Dining Room, Open Air Deck, Screened in Porch, Full Unfinished Basement, this home is sure to please! Call Clardy Real Estate Today to See this home for yourself!
We are excited to announce the adopt a highway program that we have implemented here at Clardy Real Estate. We wanted a chance to help keep Oconee County beautiful. What a great way to show our county that we as realtors want to continue to make this area a great place to live.
We Think We’re Going to Believe Grandpa
There are those currently debating the financial advantages of owning a home. Some are looking at studies and reporting that homeownership has never really been a great investment.
One of these people is Jack C. Francis, a former Federal Reserve economist and professor at Baruch College. He said in a recent CNBC article:
“For generations, parents and grandparents have been telling us that the way to get ahead was to buy a house and keep making payments with a fixed interest rate and after 20 or 30 years it would be way up in value and that was your nest egg in old age. You could either live in it rent free or sell it and use the proceeds to rent an apartment.”
The article goes on to explain the rest of Mr. Francis’ comment:
That was good advice until 2006 when home prices collapsed, he says, and it “may become good advice 10 years from now, but right now it’s not.”
Mr. Francis bases his conclusions on a study he completed which covered the years 1978 through 2008. In his study it showed that home prices increased annually by 5.7% and that the S&P 500 increased by 10.8%. Based on this information, Mr. Francis gives the following advice:
To students who come to him for guidance on whether to buy or rent in the near term, however, Francis has one word of advice: wait. “I keep telling them this is not the time to buy,” he says.
Let’s take a closer look at this conclusion.
1. We have our own study.
Mr. Francis did a study over a thirty year period which did not include the last 3 years. If we look at the same categories since January 2000 (covering one of the worst decades in American real estate history), we find that home values GAINED 42% while the S&P LOST 4.7%. It all depends on which set of data you choose to use.
2. The proper comparison is rent vs. buy.
All of these comparisons claim that putting your money into a different investment vehicle other than real estate might make sense. What they are not taking into consideration is that the investor will still have a housing expense. They will still need money for shelter. They cannot just take their money for shelter and buy other assets with it. A person can’t live in their 401k or their IRA. This leads us to…
3. In most markets today, owning is LESS expensive than renting.
Trulia recently came out with their Rent vs. Buy Index. The report shows:
that it is more affordable to buy than to rent a two-bedroom home in 72 percent of America’s 50 largest cities.
For more on this issue including a 50 city breakdown, click here.
4. Current mortgage opportunities may never be available again
The government has driven mortgage interest rates to all time lows. You can still get a 5% rate and guarantee it for 30 years. Both of these opportunities may soon disappear. Mortgage rates will increase as the economy improves and the Fed no longer feels pressure to keep rates low. The 30 year mortgage may soon be a thing of the past if suggested mortgage reforms come to be. You can lock in your housing expense for 30 years if you purchase. Renting is like having an adjustable rate loan with no cap that readjusts EVERY year. Which way do you think a landlord will readjust it?
For more on this, click here.
5. Most Americans see more to homeownership than financial value.
Last week, Fannie Mae released the National Housing Survey. The survey reported:
- 96% of all homeowners said homeownership has been a positive experience.
- 84% of Americans still believe that owning a home makes more sense than renting. Even 68% of renters believe owning makes more sense.
- 2 in 3 Americans believe that lifestyle benefits of homeownership (65%) are superior to the financial benefits (32%).
There are more and more studies being done on the value of homeownership. We think we will trust in what our parents and grandparents said. Your mortgage payment is money you put into your savings. Your rent payment goes into the garbage.
If you have driven by our office the last couple of weeks, you may have seen our sign about a free list of bank owned homes. We have had a great number of people stop in to get these list but how many people really know what it involves to purchase a bank owned home?
First of all, what is a bank owned home? It is a home that has been acquired by the bank through foreclosure because the owner did not make the payments on their mortgage. The first attempt to sell the home is at the monthly foreclosure auction at the courthouse. If the highest bid did not meet the amount of the existing mortgage due, it is now up to the bank to sell.
Why is it a good idea to purchase a bank owned home? Since the home did not sell at auction, the bank is typically anxious to sell the property fast rather than holding on to it. They do not profit from holding on to their inventory so they will usually entertain all reasonable offers, especially if they have been on the market for over 30 days.
How do I get started? As advertised on our sign, you may come in our office and meet with a trained, licensed agent and get a copy of the most recent homes available. At that time, we will also get your contact information so that we may inform you of any other homes that come on the market (even not bank owned) that meet your search criteria.
If you are serious about buying, and are not going to be paying in cash, the first step is to get pre-approved for a loan. Our agents can give you several names of lenders that are willing to help you find out how much you can spend.
Next, START SHOPPING! The list we provide is going to be homes listed by other real estate offices in the area but by shopping with one of our agents, we will be able to show you any of them you are interested in. Make sure to secure your agent with a Buyers Broker Agreement. This will give them responsibility to protect your interests, point out matters to be wary of, help with rights of inspections, and filling out bank contracts.
Once you find the home you want to purchase, your agent will submit your offer. There is usually a good bit more paperwork involved when dealing with a foreclosure so that is another good reason to be represented by a licensed realtor so they can guide you through everything as quickly and as smoothly as possible.
The bottom line is, whether you are looking to buy for investment or to live in, our team at Clardy Real Estate is here for you!
Shane Clardy, BIC
While the inventory of homes in Oconee are down from last year by 10%, the supply is still high at 894 available for sale and average of 40 buyers per month, that means a 22 month supply of homes.
Imagine it being like 894 women in a town with only 40 men. So if you are available and plan to wed, you must present yourself the best at all times. Instead of make-up and pretty dresses, you must paint, clean, work on first impression by curb appeal and be the best value at all times. Do not be overpriced unless you are just trying to help your competition get picked.
HAPPY NEW YEAR!
Shane Clardy, BIC
Clardy Real Estate
With these incredible low interest rates, the time for opportunity is NOW!
Let me show you an example:
If I was buying this house in 2007, the rates were 6.7%
Borrowing 80% the payment would be
Buying the same house today, October, 2010, at 4.2%
Borrowing 80% the payment would be
*These rates are for scenerio purposes only. Actual rates may vary based on purchaser credit score and other fees may apply.
Come in and let ups help you get started TODAY!
333 Foxfire Court- Seneca $199,900
This Seller Says Sell this Townhome--
With over 3000sq ft combined, 4 Bedrooms, 3 Full & 2 -(1/2) Baths. These two separate homes-one built in the 80's with 2bd's, then the owner in 2007 -built another connecting townhouse beside this one with full kitchen, Living room, two more bedrooms and two baths with two car garage. Very well done in craftsmanship & Curb Appeal, all in a very convenient location.
224 Lake Breeze Lane- Westminster $299,900
Motivated Sellers Here!!
Exceptional Lake Hartwell Waterfront on Deep Water with Full Size Covered Dock- Gentle Walk To the Lake- Open Floor Plan- 3 Bd/2Ba- Full Unfinished Basement that is stubbed for a Full Bathroom & ready for a 4th Bedroom.