How To Price Your Home for SALE

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:

1. 
   
   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.


2. 
   
   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.


3. 
   
   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

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

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...

1. Accept it
2. Reject it
3. 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.

1. The purchaser applies for financing as soon as possible after meeting with the sales associate.
2. Purchaser makes an offer with an initial deposit
3. When the offer is accepted, it becomes a binding contract.
4. The home inspection is done if called for in the contract, and purchaser releases inspection contingency if no major problems are found.
5. 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.
6. Lender orders the appraisal
7. 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.
8. Underwriting approves (with or without conditions) or rejects the loan request, or sends for further information.
9. Once all additional requirements are satisfied, then the loan is approved and all parties are notified.
10. Insurance, necessary inspections, repairs, survey, title, etc., are ordered. Closing is scheduled by the lender and all parties are notified.
11. 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

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?

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

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

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

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.