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

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

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.