The 2006 point-of-sale reassessment law that produced so many unintended consequences after the real estate crash has been amended today by Governor Nikki Haley.

Real estate in Myrtle Beach is reassessed for tax purposes every five years. But the 2006 law added an additional reassessment whenever a property is sold. At the time, when the real estate market was the shining star of South Carolina, the new law was a way for tax revenue to keep up with rising property values. But in today’s market, we have homeowners paying more than twice as much tax as their next door neighbor.

Realtors around the state have lobbied for several years to repeal or amend the law, and the Governor signed the change today. The new law provides for a 25% reduction in taxable value for all property reassessed at point-of-sale where the property is not the new owner’s primary residence.

This is a nice perk for Myrtle Beach real estate buyers, most of whom are purchasing second homes or for investment. And it is retroactive to January 1, 2011.

I know… I know… I’ve heard them all too… real estate brokers are dinosaurs… The internet will kill the traditional real estate model… people want to do it themselves… blah blah blah.

Here’s the real truth. 92% of all real estate buyers (and I believe that it is higher for Myrtle Beach real estate) begin their search online. And I say, “Have at it!” I am first in line to give prospective buyers access to as much information as they can swallow.

But when it comes down to making the deal happen, guess what? At that point, a little expertise is always a helpful – and often a money-saving tool.

The same is absolutely true for sellers. Many start with thinking, “I can sell this myself – I don’t need any help” and then go give it their best shot. Maybe the use some technology like craigslist or ForSaleByOwner.com.

Well, I’m here to tell you that, in real estate as in most other situations, you get what you pay for.

Want proof?

Oh, don’t you worry, I’ve got the proof right here.

Colby Sambrotto is a pretty bright guy. He had an idea – help folks sell their property without a real estate broker using the internet – and he clearly made a killing with ForSaleByOwner.com. He must have. His apartment in Manhattan is worth well over $2 million.

How, you might ask, do I know this? Simple. He tried to sell it on his own website. For six months. He even used craigslist and other websites to market the 2000 square foot Chelsea unit.

It didn’t work.

So what did he do?

Mr. Sambrotto finally stopped drinking his own Kool-Aid, and enlisted the help of a real estate broker, who gave him some honest advice you might not expect in today’s real estate market: raise your asking price.

So what happened? The apartment is now under contract for $2.15 million – at 6% commission. Mr. Sambrotto is going to walk away with MORE than his original asking price, even after paying his real estate broker. Think about that.

By the way, the story broker in none other than The Wall Street Journal.

California has a long history of successful innovation. California tries new ideas and methods, finds them successful, weathers the scorn of the rest of the United States, and then very slowly the ideas catch on and rest of the nation follows. Now it looks like California is out in front again with a foreclosure prevention measure that just might make it onto the ballot in November. Many real estate owners in Myrtle Beach would be thrilled if something like this happened here in South Carolina. Here’s the story.

Bank of America filed a foreclosure suit last month against the owner of an office building in Florida. The anchor tenant of the building? A Bank of America branch.

Maybe they could do that here in Myrtle Beach, too. They certainly own enough real estate!

I wonder if Bank of America will offer itself a Cash-For-Keys deal to move out?

The National Fair Housing Alliance released a scathing report on their year-long investigation of dozens of loan-modification companies. The Alliance’s undercover work revealed that many of these loan-modification companies are actually scammers demanding up front payments and then conducting minimal, if any, work on behalf of the homeowner.

The report says 55% of the companies scrutinized asked for an up front fee as high as $5,000.00 to begin work. Almost half, or 43% promised (or, in some cases, guaranteed) that they could secure a loan modification from the homeowner’s lender, before asking who the lender was, or reviewing any of the homeowner’s financials. Some companies told homeowners they could be guaranteed a lower interest rate, as low as 2%), and did not discuss or actively discouraged homeowners from contacting approved housing counseling agencies (a requirement of HAMP).

Others offerred misguided advice to homeowners, including suggestions to stop contact with the lender, or to stop making payments. One even suggested providing fraudulent financial data to the homeowner’s lender.

The Federal Trade Commission recently passed mortgage assistance relief services (MARS) rules that limit the activities of these loan-modification companies, but clearly the rules haven’t gone far enough. Once again homeowners are being lied to, with the law falling further and further behind.

Our best advice? With respect to your Myrtle Beach or Grand Strand real estate, work with someone you know and trust.