Saluda Chase Open House

From time to time, we agents will host what we call an "Agent's Open House."  The idea is to get other agents into our listings so that they 1) are aware of the listing and 2) to get valuable feedback from our colleagues.  This feedback can help us and our sellers "see" issues with condition, price, asthetics, etc. that maybe we didn't see previously.

Since we agents are pretty much on the go all the time, we typically serve lunch so that agents can stop by, give us their opinions and grab a bite...after all, we've all gotta eat.

After making it through negotiations and inspections, the deal on one of my sweetest friend's house fell apart because of the buyer's inability to obtain financing like he thought.  This is the biggest bummer a seller, and an agent for that matter, can experience.  So, today, we hosted an agent's open house to get our fellow agents in the house and to see if any of them might have a potential buyer.  We had 14 agents stop by and one even brought a buyer client with her.  Having this many agents preview at one time was a huge success!

The house is fantastic.  It's a split floorplan, which provides awesome privacy for the master suite. The kitchen has been updated with gleaming granite counters, handsome cherry finish cabinetry and features a ceramic tile floor.  Other features include a bonus room, screened porch, fireplace, big backyard.  All of the agents who attended today had nothing but compliments for the house.  Take a look and if you, or someone you know might be a good fit for this house, please contact us to arrange a showing!

$188,000

 

Earnest money? Who's Ernest?

Sometimes we find that purchasers, when preparing to buy, focus heavily on putting aside money for their down payment that they forget about (or don't know about) other up-front monies that they will need.  The first one in the process is "earnest money."

When you write an offer with your agent (me) you'll also need to write a check called an earnest money deposit.  As its name implies, the purpose of this check is to demonstrate to the seller that your offer is "in earnest." You see, this deposit does a few things.  First, to show the seller that you are serious.  So serious, in fact, that you are willing to put that money on the line and forfeit it to the seller should you breach your contract.  Second, it also serves as a deposit on your side of the equation.  What I mean is that when we go to closing, this  money is credited back to you.  

One question people often ask is "if this doesn't go through, will I lose this money?" The answer most of the time is no.  All contracts are contingent on financing or proof of funds for cash deals. If something happens (you lose your job, for instance) that causes you to be denied financing, you will not lose this money.  However, if you are approved and just change your mind, this is default (breach) and you forfeit this money. Fortunately, in my career, this has only happened enough times for me to count on one hand.

Another common question is "how much earnest money do I have to put up?"  There is no solid answer here.  There are no rules.  You want to offer enough of a deposit to show your seriousness about the property and something that is in proportion to the value of the property.  For example, if you are interested in buying a $300,000 house, the seller is highly unlikely to accept a $500 earnest money deposit.  Why?  If you default, he only stands to recoup $500 after taking his house out of the active listing status while under contract with you. For that priced property, he will want a more sizable deposit to make it worth his while in the event of a breach.  Make sense?

The stewardship of your earnest money is strictly regulated by state government.  Your money must be deposited into a special trust account to be held there until it can be rightfully disbursed. Once your offer is accepted by the other party, agents are required by law to deposit your earnest money into that trust (escrow) account within 48 hours.  It's as safe as being in Gringotts (for all you Harry Potter fans!)

If you have any real estate questions, either of us would be happy to talk with you.  Information is power.

What is a home warranty & what does it do?

Sometimes I mention "home warranty" and people start nodding their heads and they say something like, "oh yes, insurance on my house."  Well, no. It's not a homeowner's insurance policy.  Homeowner's insurance is the big one; covers fire, trees crashing through your roof, someone getting injured on your property, your belongings, etc.  A home warranty is something quite different.

The home warranty is a one year policy that covers the working parts of a house.  Working parts are things like the heating & air system, water heater, dishwasher, swimming pool, electrical system, etc.  They were originally created to give homeowners some coverage for the big ticket items like heating & air but have evolved to cover much more.  Typically, the process goes like this:

• Your water heater malfunctions or quits working.
• You call the warranty company's toll-free number FIRST. Do not call a plumber, or any type of contractor without calling this number first.  You will void the warranty.
• The warranty company authorizes the proper contractor to come to your home.
• You pay that person a deductible, which can be anywhere from $50 to $100, depending on your plan.
• The contractor evaluates the problem and determines if it can be repaired or if it requires replacement.  They report this back to the warranty company who then approves the repair/replacement.

So, as you can see, this type of coverage can be quite valuable to a homeowner, especially someone who has not owned a home before.  As the end of that first year approaches, the warranty company will offer to extend the warranty for you.  You just pay the annual premium and you're all set.  Usually this is no more than $500, depending on the size and age of the house.  I can tell you from experience, if your heating & air dies on July 3rd in South Carolina, you'd much rather write a check for $500 than $2500!  Because when it's 100 degrees and 105% humidity, you're writing a check!

Saluda Chase Charmer

Love the location of Westover Acres but really prefer a  newer house?  Well, you're in luck! 1017 Riverstone Court is in Saluda Chase, a newer neighborhood tucked inside Westover Acres.  Same great location but modern floorplans, newer construction & energy standards as well as today's features.

Fantastic home ready for a new family

 This home sports a split, open floorplan which affords a private master suite with soaker tub and walk-in closet.  The other 2 bedrooms share a full hall bath. The kitchen has been upgraded with beautiful granite countertops, handsome cabinetry and built-ins.  Dine either in the breakfast area of kitchen or the formal dining area. Other features include bonus room, screened porch, fireplace, 2 car garage, cul-de-sac location. Priced at $188,000.  

Contact us right away to arrange a showing.  It's likely the spring market will gobble this one up! 
  

Condo Relief

The condo market can be one fickle little creature.  Some years, condos are hot. Everybody wants one.  Then, it goes cold and nobody will even look at them.  But, over the last few years, something else has been happening to the condo market. Something kind of scary.

Condo complexes or neighborhoods are subject to a lot of scrutiny when it comes to financing.  For someone to obtain an FHA mortgage on a condo, the complex must appear on the "HUD list" which is something the HOA has to apply for and maintain.  This has proven to be problematic in recent years because many HOAs either don't know they are supposed to be doing this, or they do know that their neighborhood no longer qualifies.  And since the majority of people are getting FHA financing these days, this presents a problem

But what about buyers using conventional loan products?  Well, we run into the same problem.  Even the conventional lenders want to follow the same guidelines. So, if the complex has too high a ratio of owner occupants to renters, no dice.  If the complex has too little money in their reserves, or if their insurance is less than $1M, sorry Charlie.  So, as you see, it was becoming an environment that if you owned a condo, you couldn't sell it because no one could buy it. And what happens then if someone can no longer afford their condo...foreclosures go up.  The situation was looking pretty dire.

Well, today I was talking to one of my lender friends. He and I had previously had this gloom and doom conversation about the condo situation.  He shared my concerns. Well, now, he's found a loan program that will allow a buyer, who intends to be an owner occupant, to purchase a condo regardless of the owner/renter ratio. This is huge, because that's usually the part of the equation that hangs everyone up.  This is really good news for condo owners and purchasers.  And, just in the nick of time. I'm meeting with a client tomorrow who I sold a condo several years ago.  He's ready to move on to something bigger, so this is really good news.

Anyone in the market for a cool condo near the Zoo?