Are you a Follower or a Leader?

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

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

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

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.