Pete Popovich

How To Price Your Home for SALE

2011-10-13T09:49:00.003-04:00

In today's real estate market selling your home can be filled with many obstacles. Without the help of an experienced Realtor pricing the home correctly, and ultimately attracting a ready and willing buyer, may take longer than you like. Following a few simple steps will allow you to get your home priced correctly and SOLD in a timely manner. Some of these steps are as follows:

Choose a competent and reliable Realtor- Be careful of the realtor that 'talks' a big game. It is important to take into account a Realtors honesty, integrity and unbiased attitude toward selling your home. Do not be sold by the realtor. It is their job to sell your home to a buyer, not you. If a Realtor comes to your home giving you a sales pitch on why you should choose them, and does not show the integrity and honesty you have perhaps it would be better to thank them for their time and look for someone that does have these qualities. Remember the Realtor is going to represent you.

Base your list price off what comp's SOLD, not what comp's are currently on the market. Too often sellers like to think their home is worth more than it is. Typically this is a result of talking to neighbors and others in the community and hearing what comparable ACTIVE homes are listed for. A good Realtor will show you what properties have recently sold (within the last year) in your neighborhood as well as show you a multi year history to establish a trend and what direction prices are going. By doing this you and your Realtor can establish the best price to list your home so it can sell in a respectable time frame.

The Contract-Only half of the equation. In today's world a buyer and seller agreeing on price and terms of a contract is only half of the equation. The buyer obtaining financing (assuming they are not paying cash) is the second half. Since the credit crunch of 2008 lending guidelines have become exceedingly stringent. The appraisal of your home is just one of the things being looked at in more detail. If the appraisal of your home comes in lower than the agreed upon purchase price; the buyer will have to make up the difference, out of their own pocket, or else the deal is dead. This is very important to keep in mind when pricing your home for sale. It must not only be priced at a level that will attract the largest number of buyers and bring an offer but that offer must meet the banks established value of the property or else the buyer will be unable to obtain financing.

These are just a few things to keep in mind when putting your property on the market for sale. There are more components you should be made aware, which a competent Realtor will be able to discuss with you. If your Realtor does not bring these things to your attention perhaps you should find one that does.

If you would like to know more about listing your home and how to go about doing so feel free to call Pete Popovich at 843.338.6737 for a no-obligation consultation.

Banks, Government and Real Estate Loans

2011-08-23T11:18:00.007-04:00

Since the real estate bubble burst in 2008, it has been much more difficult to obtain a loan for the purchase of real estate. Prior to the bubble bursting almost anyone could get a loan regardless of credit rating, income, etc. This in large part is what lead to the rapid rise, and fall, of the real estate market. Some feel it was the government forcing the banks to lend money to any and everyone or else the federal government was going to cut off the banks federal funding. Others believe it was the fault of the lending institutions. You could argue both sides until the cows come home but the end result is the same; it is much more difficult to obtain a loan today than ever before. Or is it?

Who you are, where you are looking to purchase, and what type of real estate you are looking to purchase play a vital role in obtaining financing in today's market. Since the crash of '08 banks have significantly tightened their lending policies. It is our opinion they have tightened them too much leading to a stall in the sale of real estate. This is a complete 360 from just a few years ago. Prior to 2008 just about anyone that applied for a loan received one. Now you have a better chance of getting water from a rock than getting a loan, even if you have great credit scores, plenty of money saved, a good job and low expenses. However, this is if you are getting a loan from a traditional lending institution for a private party purchase; i.e. buying a home from another home owner. If you are purchasing the home that is a foreclosure and currently owned by Fannie Mae or Freddie Mac OR are obtaining a loan through one of these government lending institutions the criteria you have to go through for approval is much less severe than if you were going through a traditional bank, mortgage broker, etc.

What does this mean to you and I?

The government continues to make it easier to purchase the properties they own. Lower prices and ease of obtaining financing are just a few of the ways they are doing so. For example, if you have a 600 credit score and don't make over a certain amount of money (typically <$75,000/yr.) you can buy one of these Fannie Mae or Freddie Mac owned homes with less money down and less hassle. Yet if you make over the above stated amount and want to purchase a home from a private party homeowner Fannie and Freddie won't give you the time of day. From this perspective it appears the feds are setting us up for another financial disaster that is all tied into real estate. Lending to those that barely have the ability to pay vs lending to those that have more than the ability to pay is something that doesn't add up.

Selling Your Home-The Offer

2011-03-03T12:37:00.002-05:00

When a contract is presented to you you should be provided with the following information:

Contract terms, contingencies and addendum's
Information about the buyer (if available)
A record of recent showings
The most recent market information

When a contract is presented, on your property, you may...

Accept it
Reject it
Make a counteroffer

As a Realtor my job is to negotiate the best possible terms on your behalf. After the contract is accepted ,we are there to get you through to a smooth closing.

The Steps: From Offer, to Accepted Contract, to Closing.

The purchaser applies for financing as soon as possible after meeting with the sales associate.
Purchaser makes an offer with an initial deposit
When the offer is accepted, it becomes a binding contract.
The home inspection is done if called for in the contract, and purchaser releases inspection contingency if no major problems are found.
Seller, or Seller's agent, provides the lender with a current lien holder's name, address, and account number and a copy of the deed.
Lender orders the appraisal
Appraiser calls seller or seller's agent to set appraisal appointment. Once the processor and originator receive and review the documentation, and establish it is complete and correct, the loan is packaged and sent to underwriting.
Underwriting approves (with or without conditions) or rejects the loan request, or sends for further information.
Once all additional requirements are satisfied, then the loan is approved and all parties are notified.
Insurance, necessary inspections, repairs, survey, title, etc., are ordered. Closing is scheduled by the lender and all parties are notified.
The closing takes place and title is transferred from the seller to the purchaser. The new deed and mortgage are recorded and made part of the public record at the County Clerk's office.

Hilton Head Island-Town Government

2011-02-23T11:31:00.002-05:00

Town Government

The form of government used on Hilton Head Island is a council-manager, with six council members elected from their respective wards and the mayor elected at-large. Everyone, council members and the mayor, serve two year terms. Beaufort County, the county Hilton Head Island is located in, also employs a governing County Council, elected to serve two-year terms.

Elected Officials

There are six council members elected from the six wards in a non-partisan election to serve a two-year term. The Town Council is the legislative branch of the local government. It is responsible for making policy, enacting ordinances, adopting the annual town budget, and planning programs. The mayor is elected at-large, in a non-partisan election and serves a two-year term. The mayor is the presiding officer of the council and has an equal vote on the council. Town Council meets the first and third Monday of the month.

Appointed Staff

Town Manger: The town manager is appointed by the council and serves at its pleasure. The manager is required to be professionally trained in public administration and to have practical experience in municipal government. The manager's responsibility is the day-to-day operation of the town including the appointment and supervision of the staff, the preparation of the town budget for the fiscal year beginning July 1, executing the policies established by the town council and overseeing the enforcement of all town ordinances.

Staff Attorney: The staff attorney is hired by the town manager and is salaried by the town. The staff attorney does no outside legal work but deals primarily with internal matters. The main responsibility of this office is to serve in an advisory capacity to the manager and staff as well as boards and commissions, and thereby resolve problems in order to avoid litigation against the town. The person holding this office works closely with the town attorney.

Town Attorney: The town attorney is a statutory officer whose duties are defined in the state and town codes. The person in this office is a private practitioner appointed by the Town Council and is paid an hourly fee for projects in litigation. This attorney handles all litigation brought against the Town of Hilton Head Island.

Director of Community Development: The director of community development is appointed by the town manager. The director is responsible for the administration of the Department of Community Development with divisions of planning , building inspections and engineering.

Director of Finance: The director of finance is appointed by the town manager and manages the overall financial operations of the local government.

Town Clerk: The town clerk is appointed by the town manager and serves as chief custodian of all town records.

Who are Hilton Head Island Residents?

2011-02-10T14:01:00.002-05:00

Those that have decided to make Hilton Head Island their home come from all across the country and all parts of the world. People choose to live here for a number of reasons; warm, tropical year round climate, world class beaches, renowned golf courses, top rated tennis facilities, shopping & dining, the list goes on and on. Hilton Head Island is home to over 33,000 full-time residents and has grown enough to support all the services associated with a small city; i.e. exceptional schools (public and private), a full sized hospital and medical center, town government, a wide array of financial institutions and churches as well as art centers, shopping centers and all types of businesses. With an average age in the mid-40's, the typical Hilton Head Island resident is just as likely to be a career and family-oriented professional as an empty nester. Early retirees account for just over 25% of the population. Young professionals have found the area to be unmatched as a town in which to work and raise a family. With access to nature, wildlife, sports and all types of schools, children thrive on Hilton Head Island.

Hilton Head Island serves two purposes. One is a residential community and the other is a vacation destination. Hilton Head Island plays host to over 2 million visitors a year with almost 60,000 people inhabiting the island at any one time during the season. With all these people in one area you would think there would be animosity. Quite the contrary, visitors and 'locals' co-exist very well and the areas reputation for tasteful tranquility precedes itself. The commercial hubbub does not disrupt the island community. What unifies Islander's and visitors alike is an abiding love and respect for the nature that surrounds us and a desire to preserve the areas special way of life.

There are always pluses and minuses when making a move. When moving to Hilton Head Island the pluses far outweigh the minuses. Moving to this area means fresh air, tree lined roads, warm subtropical climate, world class amenities, top rated beaches and more. A move to Hilton Head Island is, without a doubt, a move in the right direction. You will soon discover it is more than a place to visit; it's an amazing place to live.

Hilton Head Island Demographics

2011-01-28T15:34:00.002-05:00

Hilton Head Island

Hilton Head Island, the second largest barrier island on the east coast of the United States, is shaped much like a shoe or boot. Hilton Head Island is conveniently located at the southern end of Beaufort County, between Savannah, Georgia (30 miles) and Charleston, South Carolina (90 miles).

Hilton Head Island encompasses approximately 25,000 acres and is approximately 12 miles long and 5 miles wide. the warm water of the Caribbean are pushed up to Hilton Head Island by the Gulf Stream. these warmer waters allow residents to enjoy tropical climates nearly year round by warming the air. Locals enjoy warm sandy beaches, bordered by sand dunes on one side and the Atlantic Ocean on the other. Local roads are adorned by palm trees and live oaks lined with Spanish moss and other various tropical accents. Most open space consists of salt water marshes and fresh water lagoons.

CLIMATE

Average Temperature High 76*/Low 56*

Average Rainfall 52"

Days of Sunshine 230

Days of Rain 110

Average Water Temperature 69*

Elevation 11'

SEASONAL WEATHER

Month Avg. High Temp Avg. Low Temp Avg. Water Temp

January 60* 39* 52*

February 63* 41* 54*

March 69* 47* 59*

South Carolina Taxes-A Summary for New Residents

2011-01-19T11:49:00.002-05:00

Lower taxes and a lower cost of living are a refreshing change from many other states. Moving to a new area is an exciting and adventurous time in someones life. In addition to learning the new surroundings there are other things people should know of their new area. Taxes, for example, and how they are structured in South Carolina is something everyone should be aware of.

Income Tax

South Carolina's income tax structure is based on the federal income tax laws. South Carolina accepts the adjustments,exemptions and deductions allowed on your federal return with few modifications. Your federal taxable income is the starting point in determining our state income tax liability.

When you are comparing your own states to South Carolina, looking at the tax rates only will not serve you well. Examining the tax basis, exemptions, deductions and credits is a more efficient way to compare. Different states tax differently. For example, some tax Social Security others tax pensions. The best advice is to call the state revenue department of each state and ask for copies of their most recent income tax forms. Use these forms to determine how much income tax you will pay in those states.

The federal personal exemption is $2,350.00 for each dependent and the standard deduction is $6,200.00 for a married couple filing jointly. The personal exemption and standard deduction or itemized deductions subtracted from your income leaves you with federal taxable income which is where you begin determining how much South Carolina income tax you will pay.

In addition to the exemptions and deductions allowed on the federal return, South Carolina also allows the following benefits:

Beginning with the first year you receive retirement income, you may elect to make a $3,000.00 deduction annually for life; or you may choose to wait until you turn 65, at which time you can begin taking a $10,000 deduction annually for life. If you are already 65 when you first receive retirement income, the $10,000 deduction is automatic
Money received from Social Security is not taxable in South Carolina.
Income received from National Guard or armed forces reserve pay is tax exempt.
Disability income for a permanent total disability is deductible
There is not intangibles tax in South Carolina. Intangibles tax is collected in many states that do not have a general person income tax. The intangibles tax is imposed on bank accounts, interest, dividends, stocks, bonds and other assets.
You do not pay a capital gains tax in this state on property you sell in another state. Federal rules governing capital gains also apply to South Carolina, including the one time gain of $125,000 allowed for the sale of your home if you are over 55.
A two-wage earner credit allows married couples to take a maximum tax credit of $210 if both spouse's work.
A credit is allowed for income taxes paid to another state on income which is taxable in both states.
You get an additional state income tax credit for child care or elderly care expenses.

South Carolina's individual income tax rates graduate from 2% to a top rate of 7% on taxable income exceeding $10,000. The individual income tax brackets are adjusted annually to help offset the effects of inflation.

I hope this helps you when considering purchasing real estate on Hilton Head Island or Bluffton. If I can be of any further help feel free to contact me for a no-obligation consultation on property values on Hilton Head Island and Bluffton.

Today's Outlook - Hilton Head Island and Bluffton

2011-01-10T16:37:00.003-05:00

Hilton Head Island, and the surrounding area of Bluffton, has always been a place to get away from the hustle and bustle and enjoy quiet, relaxing days and nights in a peaceful setting. Throughout the years the area has grown and prospered while maintaining an unmatched standard of living. What were once fertile indigo, rice and cotton plantations is now a wonderful assortment of fantastic amenities and world class communities. The modern plantation is a master-planned resort and residential community where you can find top rated golf courses, homes and villas with views of these courses, lagoons, marshes and best of all, the Atlantic Ocean.

Bluffton resembles your everyday American suburb. Complete with all the corporate amenities we have all grown accustomed to. Gone are the days when you would have to drive to Savannah to do your school shopping. There is a little something for everyone from large private residential plantations to small, quaint neighborhoods.

Careful planning, conservation, and environmental sensitivity were all goals in the planning process of Hilton Head Island. Careful land planning and town ordinances prohibit excessive building and paved the way for the quiet, relaxing atmosphere islanders, and guests, enjoy today. These strict regulations have kept a delicate balance between islanders and nature. This has all created a harmonic existence, where the serenity of the natural environment and the luxuries of a world-class resort are inextricably mixed.

Who are Hilton Head Island & Bluffton residents?

Those that have decided to make Hilton Head Island and/0r Bluffton their home come from all across the country and all parts of the world. People choose to live here for a number of different reasons; warm, tropical year round climate, world class beaches, renowned golf courses, top rated tennis facilities, shopping & dining, the list goes on and on. Hilton Head Island, for example, is home to over 33,000 full-time residents and has grown enough to support all the services associated with a small city; i.e. exceptional schools (public and private), a full-sized hospital and medical center, town government, a wide array of financial institutions and churches as well as art centers, shopping centers and all types of businesses. With an average age in the mid-40's, the typical Hilton Head Island/Bluffton resident is just as likely to be a career and family-oriented professional as an empty nester. Early retirees account for just over 25% of the population. Young professionals have found the area to be unmatched as a town in which to work and raise a family. With access to nature, wildlife, sports and all types of schools (public and private), children thrive in the area.

Hilton Head Island serves two purposes. One is a residential community and the other is a vacation destination. Hilton Head Island plays host to over 2 million visitors a year with almost 60,000 people inhabiting the island at any one time during the season. With all these people in one area you would think there would be animosity. Quite the contrary, visitors and 'locals' coexist very well and the areas reputation for tasteful tranquility precedes itself. The commercial hubbub does not disrupt the island community. What unifies Islander's and Blufftonians alike is an abiding love and respect for the nature that surrounds us and a desire to preserve the areas special way of live.

There are always pluses and minuses when making a move. When moving to the area the pluses far outweigh the minuses. Moving to this area means fresh air, tree lined roads, warm subtropical climate, world class amenities, top rated beaches and more. A move to either Hilton Head Island or Bluffton is , without a doubt, a move in the right direction. You will soon discover it is more than a place to visit; it's an amazing place to live.

Steps to Take When Showing Your Home

2010-12-27T11:02:00.001-05:00

The paint has dried, the sink is fixed and all the flowers are aligned in your yard. Now it's time to pull up the curtain because its Showtime! Below is a checklist of things to do to make sure your home is in show condition before each potential buyer comes through to tour.

Outside

Mow and edge the lawn on a weekly basis
Remove cars from the driveway
Rake leaves or pine straw off the lawn
Sweep decks, patios and/or walkways
Put garbage cans out of sight
Keep pets outside, especially dogs, when the home is being shown

Inside

Turn on the lights and open the blinds
Use room deodorizers, potpourri or other fresheners
Do a quick vacuuming
Make all the beds
Clean out ashtrays and empty trash cans
Put away valuables
Set temperature to 68-72 degrees
Put out fresh flowers
Clean and polish counter tops
Dust tabletops, bookshelves and window ledges
Put away dirty dishes
Clean glass tables and mirrors
Clear of bathroom counter tops
Neatly fold and hang towels
Scrub sink and toilet bowl
Clean bathroom floor

A Few Final Words To the Wise: DO NOT discuss price, terms, possessions or other features with the potential buyers. Refer them to your REALTOR. The REALTOR is well equipped to bring the negotiations to a favorable conclusion.

Hilton Head Island Real Estate-The Attorney's Role

2010-12-20T18:03:00.004-05:00

There are many elements that are involved in a real estate closing on Hilton Head Island. The primary function of a closing attorney and the reasons why a local attorney is better suited to perform these functions efficiently for a purchaser are as follows:

Review the Purchase Agreement. Only an attorney licensed in South Carolina is authorized to determine whether the contract complies with South Carolina law. Only a local attorney is familiar with the provisions which are typically included in a contract for the purchase of property on Hilton Head Island.

Obtain a Title Examination. Only an attorney licensed in South Carolina is legally authorized to issue a legal opinion regarding the acceptability of a title examination and to determine whether the title is marketable as required by the purchase agreement. Only a local attorney is familiar, on a day-to-day basis, with the title exceptions disclosed by the title examination and knows whether such exceptions actually have an adverse effect upon the property to be purchased.

Determine the Amount and Status of the Liens Affecting the Property and Other Closing Expenses. An experienced local attorney will know who to contact to determine the amount and status of the various liens affecting the property, such as the annual property owner's assessments, the monthly regime fees, and the utility charges. The local attorney will know the manner in which such charges are customarily allocated between the parties. A local attorney will know the amounts charged for recording fees and transfer fees and will collect them from the proper party.

Review Termite Inspection (CL-100) and Home Inspection Reports. A local attorney will be familiar with the matters appearing in termite and home inspection reports, will know whether such matters are serious, and will know how to resolve any matters requiring repairs or treatment, most of which is resolved through negotiation with the attorney for the seller. Clearly, attorneys who frequently deal with one another on such matters are better able to amicably resolve such important issues.

Documents & Closing. An attorney will usually be responsible for the preparation and/or examination of all the documents necessary to complete the transaction. These documents would include: the deed, closing statement and other related papers. The final settlement or closing of the transaction will be conducted by your attorney. At the closing, the parties and their attorneys will assemble at a place and time most convenient to everyone. The closing documents will be explained: executed and financial matters will be reviewed and approved by the parties. All of this work is done in cooperation with the Purchaser, Seller, Lender and REALTOR.

Hilton Head Island - Today's Real Estate Outlook

2010-11-30T17:15:00.003-05:00

Hilton Head Island has always been a place to get away from the hustle and bustle and enjoy quiet, relaxing days and nights in a peaceful setting. Throughout the years the area has grown and prospered while maintaining an unmatched standard of living. What were once fertile indigo, rice and cotton plantations is now a wonderful assortment of fantastic amenities and world class communities. the modern plantation is a master-planned resort and residential community where you can find top rated golf courses, homes and villas with views of these courses, lagoons, marsh and best of all, the Atlantic Ocean.

Careful planning, conservation, and environmental sensitivity were all goals in the planning process of Hilton Head Island. Careful land planning and town ordinances prohibit excessive building and paved the way for the quiet, relaxing atmosphere islanders, and guests, enjoy today. These strict regulations have kept a delicate balance between islanders and nature, as well as keeping real estate values high. This has all created a harmonic existence, where the serenity of the natural environment and the luxuries of a world-class resort are inextricably mixed.

Who are Hilton Head Island residents?

Those that have decided to make Hilton Head Island their home come from all across the country and all parts of the world. People choose to purchase real estate on Hilton Head Island for a number of reasons; warm, tropical year round climate, world class beaches, renowned golf courses, top rated tennis facilities, shopping & dining, the list goes on and on. Hilton Head is home to over 33,000 full-time residents and has grown enough to support all the services associated with a small city; i.e. exceptional schools (public and private), a full sized hospital and medical center, town government, a wide array of financial institutions and churches as well as art centers, shopping centers and all types of businesses. With an average age in the mid-40's, the typical Hilton Head Island resident is just as likely to be a career and family-oriented professional as an empty-nester. Early retirees account for just over 25% of the population. Young professionals have found the area to be unmatched as a town in which to work and raise a family. With access to nature, wildlife, sports and all types of schools (public and private), children thrive on Hilton Head Island.

Hilton Head Island real estate serves two purposes. One is a residential community and the other is a vacation destination. Hilton Head plays host to over 2 million visitors a year with almost 60,000 people inhabiting the island at any one time during the season. With all these people in one area you would think there would be animosity. Quite the contrary, visitors and 'locals' coexist very well and the areas reputation for tasteful tranquility precedes itself. The commercial hubbub does not disrupt the island community. What unifies Islander's and Blufftonians alike is an abiding love and respect for the nature that surrounds us and a desire to preserve the areas special way of life.

There are always pluses and minuses when making a move. When moving to Hilton Head Island the pluses far out weight the minuses. Moving to this area means fresh air, tree lined roads, warm subtropical climate, world class amenities, top rated beaches and more. A move to Hilton Head Island is without a doubt, a move in the right direction. You will soon discover it is more than a place to visit; It's an amazing place to live.

Hilton Head Island Real Estate-You CAN afford it!

2010-11-22T15:35:00.004-05:00

Since its inception almost 40 years ago, Hilton Head Island has been a world class destination. Because of its reputation as a first class community and its limited amount of inventory (due to the fact it is an island) prices of property have traditionally held steady. For the past 30 years, through three recessions including today's, property values have seen an average of 9% appreciation per year for lots, condos and homes combined. At the height of the market, a vast majority of people did not think they could afford to live in such a beautiful place. The thought was 'It's a great place to visit but I could never afford to live there.' The other mis-perception was 'Even if I could buy a home, condo or lot, for a great price the monthly payments would be to high.'

I am here to let you know Hilton Head Island IS affordable! Even though we have a limited amount of inventory, demand is down and it has effected property values. These values are currently 20-30% off their high in 2005. Add to this interest rates are as low as they have ever been and this creates the 'Perfect Storm' to Buy. Think about this for a second, if you were to purchase a $500,000 condo and put down 20%, your monthly payment (principle and interest) would be $1,960/mo with a 4.25% interest rate. For every point the interest rate increases 5.25%, 6.25%, 7.25% your monthly payment (principle and interest) would increase approximately $240/mo!

In real estate, fortunes are made in down markets. I cannot think of a better time to purchase property here on Hilton Head Island. What you once thought was out of your price range is now affordable. Interest rates are at all time lows and most likely headed one way from here...up. Now is the time to take advantage of this opportunity. If you are still on the fence consider this, the savvy Hilton Head buyer purchases property with a buy and hold mentality. By purchasing at the bottom of the market, or as near to it as anyone can predict, and holding onto that property for 3.5..7 years you will have a solid investment you and your family can enjoy for years to come.

If you, a friend or a family member are interested in buying or selling real estate in the Hilton Head Island/Bluffton area and would like a no-obligation consultation on property values, the state of the local economy and 'Best Buys' feel free to contact me anytime. I look forward to putting my 18 years of experience in the Low Country to work for you.

Hilton Head Real Estate Taxes

2010-11-01T16:44:00.003-04:00

When purchasing Hilton Head Island Real Estate it helps to have an understanding of how the Hilton Head Island Real Estate Taxes are figured. Hilton Head Island is located in Beaufort County, SC. The Beaufort County Tax Assessor places an appraised value on your Hilton Head Island Real Estate, based on comparable sales, the property's condition, etc. This appraised value is then multiplied by 4% for residents and 6% for non-residents and corporations, to determine the 'assessed value' of a property. The assessed value is then multiplied by the appropriate millage rate for your district. Residents that qualify for the 4% tax ratio are exempt from taxes imposed for school operating expenses. Therefore, the millage rates differ for non-residents and residents. For example: A resident with a $100,000 home in district 550 is $100,000 multiplied by 4% and then multiplied by .0935 ($4,000 x .0935 = $374). For a non-resident multiply $100,000 by 6% and multiply that number by .1973 ($6,000 x .1973 = $1,162.20). It is important to remember that the information provided here is general in nature; if you have specific questions about your personal tax situation, you should check with:

County Auditor's Office in Beaufort
843.470.2555
Tax Assessor's Office
843.470.2522
www.bcgov.net
www.sctax.org
Or check with your personal accountant

Why Real Estate Sells: The Key Factors in Selling your Property

2010-10-25T16:30:00.003-04:00

There are eight reasons why your home, lot or villa will find a buyer. Some are fixed (i.e. beyond your control), but the majority are variable and fall well within your control. I will work with you to gain the greatest possible sales advantage for your property.

Fixed:

Location
Market Conditions
Competition

Variable:

Listing Price
Condition of Property
The Real Estate Agent's Marketing Plan
Ease of Showing

The most important variable in getting your property sold is...THE PRICE!

Buyer's Always Determine Value. The real value of your property is based on facts. The value of your property is determined by what a buyer is willing to pay in today's market based on comparing your property to others.

What you paid for your property does not affect its value!
The amount of cash you need to buy something else does not affect its value!
What you want for your property does not affect its value!
What another Realtor says your property is worth does not affect its value!
What an appraiser says your property is worth does not affect its value!

Want to list your home on the "high side"? Consider this...Real Estate agents show property by comparison, and buyers purchase property by comparison and will usually make an offer on a fairly priced property before making a low offer on an overpriced listing.

Real Estate agents will show your property to buyers, as an example, to support a properly priced property that is comparable to yours.

Overpricing lessens the property's chances for exposure because professional real estate agents will only present to their clients and customers the most favorable options.

If the property is on the market any lengthy period of time, the property runs the risk of becoming stale and tagged as overpriced. Then, when offers do come in, they will come in well below what they could have been if appropriately priced from the beginning.

Pricing the property to sell and What you need to know.

The most important aspect of selling your property is the initial listing price. A comparative market analysis will help determine the price to place on your property. The asking price you select should depend upon how quickly you want it sold. If you have a lot of time you price it High, ample time price it Competitive, need to sell immediately price it Best Buy.

The more properties for sale (or unsold) in your market area the more competitively you need to price your property. Do not start ambitious to "see what happens". To encourage other Real Estate Professionals to show your property, price your property correctly from the start. This will save you a lot of anxiety and stress.

What another Realtor says your property is worth does not affect what a buyer will pay for it. One more time...BUYERS DETERMINE VALUE. Don't just list your property. Price it to sell so that you can accomplish your objectives.

How to find Hilton Head Island Real Estate at the Right Price.

2010-10-12T15:29:00.003-04:00

The first thing to do when searching for real estate on Hilton Head Island, or Bluffton, is to find a professionally, competent REALTOR. Find someone that you feel comfortable with and someone that will give that extra effort on your behalf. Your REALTOR should follow through, when they say they will, and get the job done right, the first time. Finally find a REALTOR that is straight forward, honest, dependable and takes the time to discover what you want. In exchange, the REALTOR who is giving that extra effort, and going that extra mile on your behalf, deserves your loyalty and support. We only get paid when we have met your objectives and found your family that perfect piece of real estate on Hilton Head Island.

Did you know?

Pete is a member of the Multiple Listing Service and is the perfect source for information on all real estate throughout Hilton Head Island and Bluffton to include: homes, villas, home sites, and commercial property. Pete has access to every listing (including all the real estate you see in real estate websites and magazines) and access to all private communities, on island and off.

When priced correctly, a number of properties are sold without ever being advertised. Having a REALTOR that knows the area and the best values, serves you well because it saves you money!

Why would you want Pete Popovich to represent you?

What I do is build long lasting relationships with my clients. That does not happen unless you are satisfied with the job I am doing. To accomplish this I listen to what you say and by taking the time necessary to help you find that 'perfect property', no matter how long it takes. My commitment is to you! You deserve to see all real estate on Hilton Head Island meeting your criteria. That is why I will show you all properties, whether they are my listings, our companies, or another companies. We will consider the advantages and disadvantages of each property and do it in an honest and unbiased manner.

How much does this additional service cost?

the additional service does not cost you a thing! We receive our compensation from the Seller's offer to compensate through the local MLS.

What you need to know when purchasing real estate on Hilton Head Island

2010-09-30T12:33:00.002-04:00

The second largest industry in southern Beaufort County, real estate, has become a thriving business on Hilton Head Island. The local Multiple Listing Service consists of over 1,200 real estate agents. Other professionals related to the real estate industry; mortgage lenders, attorneys, builders, appraisers, and insurance agents also contribute to the success of the local real estate industry. The good news for the potential buyer is that the market remains very active, which in turn creates a very competitive atmosphere. This in turn rewards the buyer that does their homework.

Who is the Hilton Head Island real estate buyer? Most people discover our lovely, tropical paradise while visiting on vacation. Because Hilton Head Island is such an easy place to get to, our demographics include people from all over the world and every age group. From the baby boomer to the young working family; from the empty nester to the retiree, we see people make the move and never look back. We also see people who visit for the first time, not looking to purchase property, and have love at first sight. Then there is the person who wants a solid investment, while at the same time getting family use and enjoyment out of their property.

Today's Buyer is at a distinct advantage over those in the past. Hilton Head Island has seen a tremendous amount of growth and matured. During that time it has received numerous awards, on a national and global level. Hilton Head Island has grown into a thriving area of its own. Residents are no longer required to drive to Savannah to do their shopping. Hilton Head Island is now home to all major corporate retailers and the services they provide. The end result of all this is a more desirable place to live and increased buyer demand for the next 1,3,5...10 years.

The Professional REALTOR's role. A good REALTOR helps educate Buyers and assists them in finding the property they are looking for. Once the negotiation has been completed it takes thirty to ninety days to pass title. Is it really difficult to facilitate a real estate transaction from thousands of miles away? The answer is simple, no, not with the proper help. A REALTOR will help facilitate the entire process from contract negotiation, to ordering and coordinating inspections, working with the lender, the appraiser and attorney to make the closing process as smooth and simple as possible. Buyers are usually amazed how easy and painless the process of buying real estate on Hilton Head Island is, especially from thousands of miles away.

Attorney's on Hilton Head Island handle both sides of the transaction. Title searches are handled by the Purchaser's attorney and most often recommend title insurance. the attorney also works closely with the lender to prepare the closing statement and package. The Seller's attorney prepares the title and orders a mandatory termite inspection (CL-100). A letter must be issued, within thirty days of closing, stating all structures on the property are free of insect infestation.

A licensed inspector can check the plumbing and electrical systems, appliances, roof and structural integrity of any house or villa before closing. Any necessary repairs, deemed necessary by the Purchaser will be negotiated by the real estate agents and attorneys.

Something else to consider is insurance. Insurance for your real estate on Hilton Head Island should include, but not limited to hazard, wind, hail and flood insurance. There are many types and kinds of policies, so be sure to check with your insurance specialist to determine the right coverage for you. Different areas require the Purchaser to pay a Real Estate Transfer Fee as part of any real estate purchase. The amount differs depending on community; i.e. Hilton Head Island or Bluffton, Palmetto Dunes or Colleton River. funds from these fees are used for community enhancement and preserving green space.

If a property is used as a primary residence; property owners, in South Carolina, are taxed at a rate approximately one third less than the rate paid by an investor or a second home owner.

Purchasing real estate on Hilton Head Island can be an intimidating, complicated process, However, when the process is clarified, with the help of knowledgeable professionals, it becomes an exciting experience leading to the great American Dream: home ownership.

How to Purchase Real Estate, Home or Villa, on Hilton Head Island

2010-09-24T15:30:00.004-04:00

Hilton Head Island real estate offers a wide array of primary residences and rental income property opportunities. Finding the right one for you is the most important thing. We will go over some guidelines and tips to consider during your search:

Step One: Always use an honest, reliable REALTOR

Step Two: Determine what type of real estate on Hilton Head Island you are looking for. Decide on your purchase price range, and have your REALTOR show you property in this price range that has the best value to you. For rental property, oceanfront villas and homes are the very best rental properties because they have the highest rental rates and are the most requested by rental guests. It should come as no surprise that oceanfront property also comes with the highest price tag.

Step Three: The condition of the real estate on Hilton Head Island and for rental properties the furnishings are important. If the furnishings are in good condition the rentals will be above average and reflected in the list price. If the furnishings are in bad condition the price will be lower and the owner will have to make repairs to receive reasonable rentals. A vast majority of rental companies, in the area, will not take villas or homes in bad condition because they are difficult to rent. People coming to Hilton Head Island, whether to purchase real estate or vacation, expect top of the line quality, even when renting units that are less expensive.

Step Four: Your REALTOR can provide you with information relative to rental histories, revenue, plantation fees, etc. Keep in mind your REALTOR knows which villas or homes are the best rental properties with good rental histories and which areas are best for full-time residents. Your REALTOR can show you the villas/homes that best suit your price, location, and lifestyle requirements. The best properties may also be rented or lived in when you wish to view them. Work with your REALTOR and be flexible. Go back to look at these properties when they are not occupied. It will be worth your while as these may very well be the best properties given your criteria.

Step Five: If you are going to rent your property, a very important step is selecting a rental management company. Some companies do better in some areas than others and your REALTOR can advise you on which company to deal with for your area. Tthe rental fee's, to include rental commissions and management/marketing fees, typically range from 20% to 35% depending on the company and what they offer. One thing to remember, when comparing companies, is compare the 'bottom line net to owner'. By comparing the bottom line and marketing plan and fee structure you will be more likely to select the best company for your area.

By following these five simple steps; purchasing real estate on Hilton Head Island, which is right for you and in your price range, will be much easier. You will have a solid real estate investment, and if it is a rental property, a good bottom line net to owner income. The most important thing you will get from your real estate purchase, on Hilton Head Island, is family enjoyment for years to come.

Fiscal YTD Real Estate Sales-Hilton Head Island

2010-07-22T17:49:00.003-04:00

2010 is proving to be another year of improved sales for real estate on Hilton Head Island. In a nutshell, the amount of properties that have PENDED this year has gone up, in all categories. If there is a drawback it is the median price SOLD is down across the board (with the exception of the larger homes). Due in large part to short sales and foreclosures, the amount of homes coming onto the market priced <$100K has gone up while inventory of larger homes ($650,000 and up) has come down. The List Price to Sales Price ration remains strong, 92%-94%, meaning there are fabulous deals to be had in today's market but people are not going to give their property away.

Over the past 30 years Hilton Head Island real estate has averaged a 9% appreciation per year, across the board. The average yearly appreciation in most areas of the country is 3%-5%, depending on area. If you are waiting for your home; that in 2006 was worth $500,000 but is now worth $300,000, to return you will miss a once in a decade opportunity. On average you will gain 4% on your house as prices on Hilton Head Island appreciate at 9%. With this in mind, even if the value of your home returns to $500,000 the price of your dream home increased too. In fact, it increased at double the rate your home did!

Why wait? You have worked and saved your entire life and deserve to enjoy the fruits of your labor; whether it is a secondary, investment or retirement home. Today's property prices are at 10 year lows and interest rates are lower than most of us have seen in our lifetimes. This offers a once in a decade opportunity that is ripe to take advantage of.

If you are interested in owning a 'piece of paradise' call me for a no-obligation consultation on real estate values on Hilton Head Island.

Updated Interest Rates for Hilton Head Island Real Estate

2010-07-19T15:14:00.004-04:00

Prices of real estate on Hilton Head Island have not been this low in over 10 years. Couple that with the interest rates below and this presents a once in a decade opportunity to own your very own "piece of paradise". Why wait? Now is the time to invest in a home or condo, whether it is a primary or secondary home. Stop contemplating and waiting for the market in your area to rebound. Get on with enjoying the life that you have always wanted and worked the last 30, 35...40 years to achieve. Call me for a no-obligation consultation on real estate property values in and around Hilton Head Island.

Mortgage Rates

For July 19, 2010

Conforming Loan Amount: <$417,000

30 yr Fixed 4.375

15 yr Fixed 3.875

5 yr ARM 3.500

5 yr Int Only 3.750

VA Fixed 5.000

USDA 5.000

Jumbo Loan Amount: >$417,001

30 yr Fixed 5.375

5 yr ARM 4.500

7 yr ARM 4.875

Purchasing Real Estate on Hilton Head Island

2010-07-09T16:25:00.005-04:00

The second largest industry in southern Beaufort County, real estate, has become a thriving business on Hilton Head Island. The local Multiple Listing Service consists of over 1,200 real estate agents. Other professionals related to the real estate industry; mortgage lenders, attorneys, builders, appraisers, builders and insurance agents also contribute to the success of the local real estate industry. The good news for the potential buyer is that the market remains very active, which in turn creates a very competitive atmosphere. This in turn rewards the buyer that does their homework.

Who is a Hilton Head Island Real Estate Buyer? Most people discover our lovely, tropical paradise while visiting on vacation. Because Hilton Head Island is such an easy place to get to, our demographics include people from all over the world and every age group. From the baby boomer to the young working family; from the empty nester to the retiree, we see people make the move and never look back. We also see people who visit for the first time, not looking to purchase property, and have love at first sight. Then there is the person who wants a solid investment, while at the same time getting family use and enjoyment.

Today's Buyer is at a distinct advantage over those in the past. Hilton Head Island real estate has seen a tremendous amount of growth and maturation. During this time Hilton Head Island has received numerous awards, on a national and global level. Hilton Head Island has grown into a thriving area of its own. Residents are no longer required to drive to Savannah to do their shopping. Hilton Head Island is now home to all major corporate retailers and the services they provide. The end result of all this is a more desirable place to live and increased buyer demand for the next 1,3,5...10 years.

The Professional REALTOR's role. A good Realtor helps educate Buyers and assists them in finding the property they are looking for. Once the negotiation has been completed it takes thirty to ninety days to pass the title. Is it really difficult to facilitate a real estate transaction from thousands of miles away? The answer is simple, no, not with the proper help. A REALTOR will help facilitate the entire process from contract negotiation, to ordering and coordinating inspections, working with the lender, the appraiser and attorney to make the closing process as smooth and simple as possible. Buyers are usually amazed how easy and painless the process is, especially from thousands of miles away.

Attorney's on Hilton Head Island handle both sides of the transaction. Title searches are handled by the Purchaser's attorney and most often recommend title insurance. The attorney also works closely with the lender to prepare the closing statement and package. The Seller's attorney prepares the title and orders a mandatory termite inspection (CL-100). A letter must be issued, within thirty days of closing, stating all structures on the property are free of insect infestation.

A licensed inspector can check the plumbing and electrical systems, appliances, roof and structural integrity of any house or villa before closing. any necessary repairs, deemed necessary by the Purchaser will be negotiated by the real estate agents and attorneys.

Something else to consider is insurance. Insurance on Hilton Head Island should include, but not limited to hazard, wind, hail and flood insurance. There are many types and kinds of policies, so be sure to check with your insurance specialist to determine the right coverage for you. Different areas require the Purchaser to pay a Real Estate Transfer Fee as part of any real estate purchase. The amount differs depending on community; i.e. Hilton Head Island or Bluffton, Palmetto Dunes or Colleton River. Funds from these fees are used for community enhancement and preserving green space.

If a property is used as a primary residence; property owners, in South Carolina, are taxed at a rate approximately one third less than the rate paid by an investor or a second home owner.

Purchasing real estate on Hilton Head Island can be an intimidating, complicated process. However, when the process is clarified, with the help of knowledgeable professionals, it becomes an exciting experience leading to the great American dream: home ownership.

Hilton Head Island Events-May

2010-05-17T16:59:00.003-04:00

Hilton Head Island Events
May 2010
1st-2nd
Relay for Life of Beaufort County-Honey Horn Plantation
1st-3rd
3rd Annual Banana Open Junior Tennis Tournament-Palmetto Dunes Tennis Ctr
2nd
Kids Triathlon- Sponsored by the Island Rec Center
3rd
5th annual Yacht Hop-to support Hospice Care of the Low Country @ Sea Pines Resort
4th
Business Golf Classic-Hilton Head Island/Bluffton Chamber of Commerce
Season Finale - Hilton Head Island Orchestra
9th
The Go Tri Sports Triathlon at Hilton Head Island-Coligny Beach
MS Walk-Jarvis Creek Park
16th
13th annual Rib Burnoff- at the Honey Horn Plantation
17th
USC Jazz Faculty Quartet-Coligny Theater
29th-30th
Relay For Life of Jasper County
30th
Annual Low Country Hog Job Trail Run & Nature Walk

Hilton Head Island/Bluffton Real Estate Sales

2010-05-13T16:37:00.002-04:00

Sittin' on the dock of the bay...

Watchin' the property sell away.

Contrary to what you hear from the mainstream media, regarding the real estate market, real estate sales here on Hilton Head Island and Bluffton are doing extremely well. Not only are properties being shown at a rapid pace but contracts are being written and properties are selling!!! The first quarter of 2010 has seen quite a rise in SOLD property vs the first quarter of 2009. See sales numbers below:

HOMES

Hilton Head - UP 42%

Bluffton - UP 22%

VILLAS

Hilton Head - UP 81%

Bluffton - UP 700%

LOTS

Hilton Head - UP 370%

Bluffton - UP 29%

As you can see real estate is selling on Hilton Head Island and Bluffton. Traditionally Hilton Head Island real estate has been one of the last to feel any hit in the market and one of the first to recover. It appears history is repeating itself and we are coming out of this drop in the market. If you have been waiting for that once in a lifetime buy you might have waited to long. However, if you could get the second or third best deal in the past 10 years wouldn't you take it?

Recessions, like the one we are experiencing, are a time when the old way of doing things are dropped and new ways are developed. This presents an ideal time for savvy buyers to take advantage of market conditions and real estate here on Hilton Head Island and Bluffton. We experience a recession in our country approximately once every 11 years. In the past those that have purchased real estate here on Hilton Head Island and Bluffton have done very well. Not only monetarily but with the countless memories they have enjoyed with their families while visiting/living in the area. For investors, prices have not been this low in ten years and because of our limited inventory and steady demand sales and ultimately values rise.

If you were debating whether to jump back into the real estate market on Hilton Head Island and Bluffton or have been contemplating whether to wait or BUY NOW, don't wait any longer. Now is the time to move on with your life and start to enjoy what you have worked so hard for. Don't be caught on the dock of the bay, watching the real estate sell away.

Current Real Estate Interest Rates

2010-04-30T09:22:00.006-04:00

"Just another day in paradise" is a common phrase said here on beautiful Hilton Head Island. Why? Because that is how people that own real estate on Hilton Head Island view their community. What else would you call an area that has 300 days of sunshine a year while enjoying a tropical climate with world class golf & tennis, dining & shopping and surrounded by the Atlantic Ocean?

Why wait? Why keep putting your life on hold and wondering what the market is going to do next? With interest rates extremely low (see rate sheet below) and various properties to choose from there couldn't be a better time to purchase real estate on beautiful Hilton Head Island. Not only does Hilton Head Island real estate offer a sound investment to your portfolio it also offers years and years of memories for you and your family. You will fill up many photo albums with pictures of your family while spending time on Hilton Head Island, and you and your family will have memories to last a lifetime.

Current interest rates as of 4/28/10

Conforming loan amount: $417,000 and below

30 Yr Fixed- 4.875

15 Yr Fixed - 4.375

5 Yr ARM - 3.750

5 Yr Int Only - 3.875

VA Fixed - 5.000

Prime - 3.250

Jumbo Loans: $417,001 and above

30 Yr Fixed - 5.750

5 Yr ARM - 4.125

7 Yr ARM - 4.500

If you have any questions on real estate on, or around, Hilton Head Island, or would like a no-obligation consultation on property values in your area, feel free to contact me anytime at 800.845.9506. I look forward to sharing my experience and knowledge of the market to help save you valuable time and money.

Hilton Head Island Real Estate Update

2010-04-23T10:02:00.005-04:00

Great News!!! The National Association of Realtors (NAR) reported that sales of vacation homes has risen 7.9% in 2010, half of which were in the South. The report said "the typical vacation home buyer is making a lifestyle choice , with 9 out of 10 saying they intend to use the property for vacations or as a family retreat." This just goes to show you should not wait by putting family enjoyment on hold.

Hilton Head Island real estate offers exceptional value at this time. Recessions are a natural part of our economy that has experienced unsustained growth. Bill Gates, of Microsoft fame, says "Where there is confusion in the market place, there is opportunity." Today's real estate market on Hilton Head Island offers exceptional opportunities.

It is easy for investors and families to become educated in the value and benefits of owning real estate on Hilton Head Island. It is easy to understand how their investment is two fold; first by offering family enjoyment and second, by serving as a great addition to their investment portfolio.

Even though we are in the midst of a recession we have a narrowly defined niche in the marketplace due to limited inventory, which gives us a competitive advantage in the high-end resort market. Not to mention Hilton Head Island real estate is an award winning, world-class, oceanfront destination resort community with an international reputation.

If you are looking to take advantage of low interest rates and decade low pricing now is the time to take advantage of the marketplace. Stop putting your families enjoyment on hold and make the move into Hilton Head Island real estate today.

Verizon Heritage Golf Tournament Schedule

2010-04-12T12:27:00.002-04:00

It is Spring on Hilton Head Island and that can only mean one thing, The Verizon Heritage Golf Tournament!!! The following is a schedule of the weeks events:

Monday, April 12

Pro Practice Rounds
Opening Ceremonies - 18th Green 12:00 pm
Harbour Town Cup Pro-Am 12:00 pm - 6:00 pm
Starting on the 1st & 10th holes

Tuesday, April 13

The PGA TOUR Professionals are invited to play at their discretion. No advance starting times are available. A pairings board is located by the 1st tee and is continually updated as players begin their rounds.

Coca-Cola Youth Day-All Day
Putting Contest - Putting Green 3:00 pm - 5:00 pm

Wednesday, April 14

Verizon Heritage Pro-Am
Starting on both 1st & 10th holes

Thursday, April 15 & Friday, April 16

First & Second Rounds
Starting on both 1st & 10th holes
Morning Starting Times 7:30 am - 9:00 am*
Afternoon Starting Times 12:00 pm - 1:30 pm*

Saturday, April 17

Third Round
All players start on 1st hole
Starting Times 8:30 am - 1:30 pm*
Tartan Day - Judging in the tent by the Clubhouse 12:00 pm - 2:00 pm

Sunday, April 18

Church Service - 18th Green
Final Round
All players start on the 1st hole
Starting Times 8:30 am - 1:30 pm*
Trophy Presentation - 18th Green 7:30 pm

*Times are approximate. All times are subject to change.

Are you a Follower or a Leader?

2010-03-29T11:27:00.005-04:00

Most have heard the story of the multi-millionaire before the stock market crash in the 1920's. For those of you that do not know the story, the following is a brief explanation. The 1920's were roaring and money flowed throughout the country. Everyone was making money and doing well. A wealthy gentleman stopped to have his shoes shined one afternoon. As he conversed with the gentleman shining his shoes he was told 'Mr. if you have any money, you need to put it into stocks, you can't lose'. Later that afternoon he went to his office and sold every stock he had. When his secretary asked why he said 'If everyone knows to put money into something it is to late, and time to get out.' Later that week the stock market crashed and millions of people lost everything.

Fast forward to today.

The past couple of years people have been running away from purchasing real estate, even here on Hilton Head Island, like it was the plague. If you talk to most people on the street they will say 'stay out of real estate you can only lose money.' These people are classified as Followers. They only go into something after everyone else has and as we know by then it is to late.

With inventory levels being depleted, meaning supply is going down, where do you think Hilton Head Island real estate will be in 3,4,5....7 years from now? The answer is easy, up. Now is the time to get into real estate on Hilton Head Island and the surrounding area of Bluffton. Prices are at ten year lows, interest rates are extremely low there has never been a better time to buy. Real estate here on Hilton Head Island, and the surrounding area of Bluffton, presents an amazing opportunity for the savvy buyer, i.e. Leader. Not only will you have a sound investment for years to come but you will also get the biggest return of all; family enjoyment, and you can never put a price tag on that.

If you are interested in making your money work for you, while creating memories that will last a lifetime and being a Leader instead of a follower, contact me today.

The Future of Real Estate-Hilton Head Island

2010-03-24T16:30:00.004-04:00

I am often asked "When do you think we will come out of this housing slump?" or "Are we at the bottom yet?" As of last year at this time I would have said 'no' to both questions. However, 2010 is another story. Especially for real estate here on Hilton Head Island and the surrounding communities of Bluffton.

Why do I say this?

Reason #1 - Warren Buffett, The Oracle of Omaha, has predicted the real estate market will bounce back in 2011.

Reason #2 - Hilton Head Island real estate has traditionally come out of recessions, downturns in the real estate market, etc. approximately a year before the rest of the country.

If the rest of the country is going to see the real estate market bounce back next year and Hilton Head Island/Bluffton real estate traditionally bounces back before the remainder of the country don't you think that now is the time to buy Hilton Head Island/Bluffton real estate?

The answer is unequovically 'yes'. There could not be a better time to buy real estate on Hilton Head Island and Bluffton!!! Prices are at 10 year lows, interest rates are near rock bottom and there is only one way both prices and interest rates are going and that is up. Take advantage of this once in a decade opportunity and stop sitting around waiting for someone else to tell you what to do.

If you have always wanted to live on a tropical island with world class amenities, get ahead of the curve by purchasing your dream home, retirement home or investment property today.

Short Sales

2010-03-18T10:51:00.002-04:00

Short sales have become a popular thing lately in the real estate market. However not many people, buyers and sellers alike, seem to understand what a short sale is and how the short sale process works. If you decide to get into a short sale, whether as a buyer or a seller, one thing is for certain, you better be extremely patient because the process will take a minimum of 8 weeks and often up to 6 months before the bank gives you an answer on your offer.

It is sad that the banks take so long to make decisions on short sale offers. From our experience in dealing with short sales the banks were ill prepared to handle this process and any/all attempts to improve the process have done little to help the situation. There are various departments you are directed to and each time you talk to someone you get a different answer. When something is finally fixed it takes 10-14 days for the fix to get into the system and when you call the bank to make sure everything is OK they tell you no one has a record of what was fixed.

A majority of these problems were caused by larger corporate banks and it appears they are doing very little to remedy the situation. Most of the smaller, local banks do everything they can to move the short sale process along as smoothly and quickly as possible. It makes you wonder with all the bailouts given to the corporate banks, do they really have the desire to help the people that bailed them out?

Hilton Head Island vs. Florida, Arizona, California, Nevada

2010-03-01T14:42:00.006-05:00

When you compare the real estate market on Hilton Head Island to other areas around the country; Florida, Arizona, California and Las Vegas, Nevada, one thing stands out. Hilton Head is an island. Because of this, there is only so much land that can be used for real estate development. With a limited amount of real estate development comes a limited amount of real estate supply. With a limited amount of real estate supply comes higher real estate demand. Even in these tough times the real estate market on Hilton Head Island has more than held its own.

Florida, Arizona, California and Nevada have an ample supply of land that continues to be developed. With so much land, and new development, these areas have a 5...7...10 year supply of inventory. Hilton Head Island, because of our limited space, does not have that problem. We are a re-sale community with limited developer inventory. What this does is help keep your investment at a respectable price years after you bought it.

Hilton Head Island's real estate demand comes from a steady flow of visitors to our tropical island from Canada, England, France, Spain and other parts of Europe, as well as the United States. Visitors not only enjoy the year round tropical climate but geographically we are centrally located and only a days drive to almost anywhere east of the Mississippi River. This makes it very convenient and accessible for family and friends to visit.

Traditionally, Hilton Head Island real estate has been one of the last to feel a hit to the market and one of the first to recover. This is in large part because of the high demand, and limited inventory (as stated above). We have almost 100% re-sale inventory, meaning when you are ready to sell you are not competing against a developer that can undercut you on pricing.

With this in mind, why wait now to 'own a piece of paradise'? There has never been a better time to purchase real estate on Hilton Head Island. Prices and interest rates are at ten year lows and you have a wonderful array of homes and villas to choose from. This is a once in a decade opportunity to take advantage of. So stop wondering and start living the lifestyle you have always wanted.

Short Sales

2009-10-26T17:37:00.002-04:00

Short sales. We have all seen the term but are not sure what it is? There is much going around about short sales but not everyone knows exactly what they are and how to go about purchasing one. Please allow me to shed some light on the subject.

First of all, for those of you that do not know what a short sale is. A short sale is where the bank/mortgagee/lender has agreed to take less for a property than what is owed. For example, if you have a $150,000 mortgage but homes in your area are selling for $130,000 it would be difficult to sell your home for more than $130,000. In a short sale, the bank will agree to let you sell your home for less than what you owe, $150,000. Sounds great doesn't it? But there are some drawbacks. Let's see what they are.

Sellers are more than happy to sell their property to get out from the burden of debt they can no longer carry. The following are some terms, and problems, most sellers are unaware of.

Deficiency. A deficiency is the difference between what you owe the bank/mortgagee and what you sell your property for. For example, if you owe the bank/mortgagee $125,000 and sell your property for $100,000 there is a $25,000 deficiency. Someone will have to make up this difference because banks are not in business to lose money. Typically a bank will not let you sell your house for less than what you owe without a deficiency. In this scenario you are still responsible for the remaining $25,000. Sometimes, if a property owner has shown, and can prove hardship (loss of job, death of the family breadwinner, work related injury limiting wages, and various other things that would cause someones income to be greatly reduced) for an extended period of time, the bank will waive the deficiency. However, the property owners problems are not over yet.

Gifts. If the bank/mortgagee shows compassion and waives the deficiency it is now considered a 'gift' by Uncle Sam. In Uncle Sam's eyes the bank has 'gifted' you $25,000 by not making you pay the remainder of your debt. Because it has been 'gifted' it is now considered income and you will have to pay taxes on it. Either way you look at, the bank/mortgagee or Uncle Sam are going to get their cut.

For Buyers the attractive prices are easy ways to lure you into the process of buying short sales. To lure buyers in short sales are listed 10, 20...50% less than comparable properties. More often than not the bank/mortgagee have not given approval of the short sale The price was there to lure an uneducated buyer into submitting an offer. By doing this the seller shows the bank/mortgagee there is activity on the property and they are trying to sell. It is great for the seller but the buyer is getting into unchartered waters .

Banks, especially larger banks, are flooded with short sales. Their short sale departments are usually understaffed and overworked making the process of buying a short sale extremely long and drawn out. When a buyer makes an offer, even if the offer meets price and terms advertised, it could take months for a response. That is just the response, not an accepted contract. If negotiations need to take place you can usually add a minimum of a couple more weeks. Finally, after the price and terms are set you can start the closing. Oh by the way, that will probably take another month, if not longer.

I hope this has helped shed some light on short sales. If you have questions on short sales, foreclosures, or private sales please feel free to contact Pete Popovich at 1.800.845.9506 or 843.338.6737 or pete@schembrarealestate.com

Foreclosures, Foreclosures, Foreclosures!!!

2009-09-08T15:26:00.003-04:00

FORECLOSURE. For most of us the word Foreclosure means a home, condo, or property that can be purchased for mere pennies on the dollar. Although that might have been true in the past, the foreclosure market is vastly different today than the foreclosure market of years past. Allow me to explain.

Foreclosures, in the traditional sense, have always been the result of someone who has fallen on extremely difficult and unfortunate times; i.e. loss of job/business, divorce, death, etc. However, years ago the lending requirements for home purchase were much more strict then they are today. A 30-year mortgage, 5-10% down payment, interest only loans, etc were almost unheard of . To purchase a home you often needed 25%-30% down with only a 10-15 year term. Because of this there was much more equity in a home when foreclosed on and the bank could sell it for significantly less and still make money.

Fast forward to the modern era. A vast portion of foreclosures today are the result of people that got into exotic loans; i.e. interest only, reverse amortization, 100% financing, etc. Because of these exotic mortgages banks do not have the equity in foreclosures they once did. Without any equity a foreclosed property does not have the 'wiggle room' in price that many people think. As a result banks are less inclined to let these foreclosures go for a 10, 20, 30% loss.

Another point to consider is some banks are currently flooded with foreclosures, often understaffed. As a result the time it takes to get a response from the Seller, i.e. the bank, is significantly delayed, often for weeks. Buyers are left to ponder while their Earnest Deposits are tied up. Foreclosures are often distressed and in need of extensive work to make them habitable. In some cases foreclosures have the baggage of liens and back taxes.

So remember, the next time you see the word FORECLOSURE and start to get excited you might not be getting the deal you thought. If you enjoyed reading this blog and would like further information on foreclosures in the Hilton Head/Bluffton area contact Pete Popovich at 843.338.6737. Don't forget to log on next week for our blog on Short Sales.

Family Enjoyment for Less!

2009-08-24T15:00:00.003-04:00

In the past 100 years there have been 11 recessions in our country, or 1 approximately every 10 years. During this time people realize the old way of doing business is broken and new ways need to be found. Values of everything, including real estate, go down because people are afraid of what might happen. Those that are savvy take advantage of this once in a decade opportunity and purchase things when they are at their lowest!

People purchase property on, and around Hilton Head Island, for three reasons 1) Family enjoyment 2) Family enjoyment 3) Family enjoyment. If you and your family have always wanted to enjoy the amenities our beautiful island has to offer, on a more permanent basis why wait? Now is the perfect, once in a decade, opportunity for you and your family to purchase property on Hilton Head Island. Take advantage of rock bottom interest rates and property prices and start to enjoy the life that you and your family have always dreamed about.

Traditionally if something is at its lowest there is only one way for it to go, up. With interest rates at their lowest levels in over 37 years and home prices their lowest in a decade now is your chance to take advantage of this opportunity and capitalize. Why wait for interest rates and prices to rise before you buy something? You and your family deserve to enjoy a 'piece of paradise' for less!