Once you’ve made that important decision to build your home instead of buying an existing home, decision number two is usually, “How do I choose a builder?”

In the Myrtle Beach real estate market, this question is especially challenging. Clearly, you’ll want someone who is established and trustworthy, who can manage a large group of tradespeople and make it seem effortless. And, equally as important, you’ll want someone with whom you’ll get along; someone who understands what you really mean – based on the words you actually say.

So, how do you find that builder?  I have four broad suggestions:

1. Who in your circle of friends has built their own home recently?  Word-of-mouth is almost always the best way to find a fantastic home builder.  You can always widen your search to include family (and their circle) and co-workers (and their circle) to find potential building partners.

2. Find out, either from the builders, or from your local chamber or commerce or BBB, how long the builders have been building homes?  How many homes they’ve built?  References – both positive and negative?

3. Ask the basics, even if you think you’re being picky. What kind of homes have you built?  Will I get a warranty? What will it cover? How long will it last? What happens if… (fill in the blank).  When it comes to contracts, make sure you read everything carefully – or consult with a real estate attorney.

4. Pay attention to how each builder listens to your questions, and how they formulate and express their answers. Sometimes the only difference between two builders is their personalities.  In that case, wouldn’t you rather do business with a friend?

Now, go make your dream home a reality!

Myrtle Beach real estate owners in financial distress will find an unlikely ally in – of all places- the IRS!

Internal Revenue Commissioner Doug Shulman said that taxpayers will be able to ask the IRS to discharge its claim to property if the property were being sold as a short sale or foreclosure, and federal tax liens may be made secondary to liens held by the bank when refinancing or restructuring a loan.

“We need to ensure that we balance our responsibility to enforce the law with the economic realities facing many American citizens today,” Shulman said.  “We don’t want the IRS to be a barrier to people saving or selling their homes.”

It’s not often that we applaud this particular tentacle of the federal government… but our hats are off today.

The Federal Reserve entered uncharted waters yesterday, lowering the interest rate banks charge each other to almost zero, because banks have been so reluctant to loan money – even with each other.  The Fed also announced that it would do whatever was necessary – including printing unlimited amounts of money – to defrost the frozen credit markets.

So how did everyone react?

The stock market was up, the bond market dropped like an anvil, and, in anticipation of a flood of newly-printed greenbacks, the dollar dropped sharply against foreign currencies.

But in the real estate world, we got what we expected, and a piece of what we needed.  Today, buyers can secure a 30-year fixed-rate mortgage for just 4.75%.

NOW who wants to buy Myrtle Beach real estate?

Good news for investors:  Price & Company Realty obtained a copy of a letter from James Lockhart, conservator of the Federal Housing Finance Agency (overseeing Fannie Mae and Freddie Mac), to Charles McMillan, President of the National Association of Realtors.  (You can read the letter here.)

As you know, Fannie and Freddie recently lowered the number of allowable investor properties from ten to four.  This new limit forced many investors away from Fannie and Freddie’s standard loans and into higher cost investor loans and “hard money” financing.  The change was the last straw for many Myrtle Beach real estate investors, who threw in the towel and are now standing on the sidelines waiting for something to happen.

In the letter, Lockhart promises that Fannie and Freddie are now reconsidering that change, which “reflects an appreciation of the role for investors in the housing recovery.”

Because we in the Myrtle Beach area are so investor-heavy, this would be a welcome, and much-appreciated, ray of hope.

Sellers almost always overprice their homes. The market statistics prove this. On our MLS today, there are hundreds, if not thousands, of homes that will never sell at (or near) their current price.  The biggest reason for this is what I like to call SOS: “Seller’s Ostrich Syndrome.”

Even in this market, however, most homes do sell at (or near) their market value. But helping a seller understand their home’s market value is a conversation most Myrtle Beach real estate agents can’t stand, allowing instead their seller to stick their head in the ground.  True market value is that price at which a buyer will buy (and think they got a good deal) AND at which a seller will sell.

Market value is NOT:

1. How much you paid, plus some abstract dollar amount.
2. How much your neighbor’s house sold for, plus some abstract dollar amount because you like your home better.
3. How much anyone thinks it is worth, especially if they are a Realtor trying to get your listing.

For many sellers, today’s market value is just plain ugly. We know what it is like to lose equity, and we always try to balance what our sellers want with what the market demands.  And we strive to avoid SOS. Here are some tips to keep in mind:

1. Forget about what your home used to be worth. Homes sell, listings expire, and foreclosures and short sales are popping up everywhere. Buyers don’t care what you paid. They care about location, size, quality and condition.

2. What will your home be worth next month? We’ve had sellers reject offers that they considered too low, only to accept lower offers later because of continued market declines. If you think there is a chance that prices are going to fall further, price your home at today’s market value – don’t wait.

3. More marketing does not justify overpricing. Yes, it’s a good idea to differentiate your home from everyone else’s homes for sale. But every buyer that is attracted to your home will be attracted to other, similar homes, too. And if yours is overpriced, which will they buy?

4. Beware the appraiser. The last thing you want is to endure the hassle of offer, counter-offer, negotiation, inspection and packing, only to discover that your home didn’t appraise for the selling price. Do your homework – or make sure your Realtor does theirs – and establish a selling price based on three recent sales of similar properties.

5. Be the best! From a buyer’s perspective, they want value: the best house they can get, at the best price they can find.  And with the help of the Internet and/or a good Realtor, they’ll find it.  Sellers must first know the market and their competition, then create value for buyers. In today’s market, buyers are in control, they know that they are in control, and they won’t buy your home unless they believe they’re getting value.