A bill currently under consideration by the South Carolina Senate would charge a $10 annual “fee” (that’s a tax, folks) for every lot or home in every South Carolina community governed by a Homeowners Association.  Experts agree that you can count on this fee being passed on to homeowners.

The South Carolina Homeowners’ Association Act would also require associations to file information on officers, fees paid by members and copies of bylaws and covenants to the state Department of Consumer Affairs each year.  Even the bill’s opponents agree that it could create more transparency in associations used to doing business in secret, or whose officers are accused of being either inept or malicious.

While the regulatory piece of the pie is not an altogether abhorrent idea, sticking another tax on the heads of already-beleagured homeowners is not what our founding fathers had in mind.  In our opinion, passage of this bill would create a giant sucking sound from Columbia (thanks, Ross Perot) that Myrtle Beach homeowners just can’t afford right now.

Last summer, we wrote about the new mortgage law passed by Congress, and discussed the good, the bad and the ugly.

One part of this law was a tax credit of up to $7,500 for certain home buyers.  But, the cash came with a catch: you had to repay the money over the course of fifteen years – or immediately if you sold the home.  The “credit” was more like a “credit card.”

Now, the good news.  The stimulus package being debated in Washington right now contains a provision that would eliminate the repayment part of the tax credit.  But before you get your hopes up and are ready to go run right out and purchase Myrtle Beach real estate, keep in mind that this change is subject to negotiation between the House and Senate – and, of course, passage of the economic stimulus package itself, which is far from guaranteed.

But a $7,500 credit is still better than a $7,500 loan, no matter how long you have to wait.

Are you eligible for this credit?  Take this test to find out. You must answer “No” to each question to be eligible:

1. Do you currently own a home?

2. Have you owned a home in the last three years?

3. Do you earn more than $95,000 (single) or $170,000 (married)?

4. Are you purchasing the home from someone related to you?

Did you pass the test?  If so, congratulations – you will probably be able to knock $7,500 off your taxes!

As always, don’t take our word for it – we’re neither accountants nor attorneys.  Consult with your tax professional to determine if this is right for your particular situation.

So what’s really going on with the Myrtle Beach real estate market?   If you missed part one and/or part two, you should read them first. In part one, I discussed how all real estate is local, and that the realities of the Myrtle Beach real estate market can’t be described by the generalities used by the national media.  Part two prepares sellers for the realities of a buyer’s market.

Today’s reality check is designed to help buyers navigate the current situation, and to paint (in bright neon) the elephant in the room.   Today’s buyer’s market feels (for buyers, anyway) like a kid in a candy store: so many choices – all of them good! But, the truth is, some good choices are better than others.

By now, just about everyone (not living under a rock) knows that the growing inventory of foreclosures and short sales is ripe with amazing deals.  Less talked about, however, are the ranks of Average Joes (plumbers and others), who aren’t in financial distress, but who want to sell their property, and are prepared to offer a good deal and incentives to seal the deal.

How do you know which of these options is right for you?

People buy real estate for many different reasons, and you have to decide – ahead of time – why you are buying, and how much risk you are prepared to take on.  Many people, after looking at this chart, will decide that a foreclosure might not be their best choice, especially in a first-time homebuyer situation. Short sales are messy and take much longer, especially if the bank hasn’t signed off on an acceptable dollar amount in advance.

This chart represents our experience. Obviously, there are exceptions.  Just remember – it’s not always about price!

So what’s really going on with the Myrtle Beach real estate market?   If you missed part one yesterday, I discussed how all real estate is local, and that the realities of the Myrtle Beach real estate market can’t be described by the generalities used by the national media.

Today’s reality check is for sellers who have property listed or contemplating listing their property for sale. In a buyer’s market, many sellers are paralyzed into inaction by fear of the unknown.  If you had property valued at $200,000 in 2006, and you had considered selling it then, most folks would not disagree that you probably should have sold it, since you’ll most likely get less for it today.  But, if you didn’t sell it then, and you’re still contemplating it, what, exactly, are you waiting for?

We’re seeing this midset continue in stronger terms today.  Many sellers who can afford to do so, are waiting for the market to turn around. But what sign are you looking for? How will you know when the market turns around?  No less astute an investor than Warren Buffett was asked, “How will you know when the real estate market has hit bottom?”  His famous response: “You’ll look back a year later, and say, ‘There it was!’ ”

Here’s what Warren was trying to say: trying to time the market is a risky proposition.  Next year, prices might be higher. They might be lower. And anyone who professes to know the future should be in a different line of work.

If you are fortunate enough to be a seller who does not have to sell in this market, then by all means, don’t!  We have enough inventory on the market that isn’t selling (for reasons we’ll get into below).  I always ask potential sellers, do you want to sell your property in this market, or do you just want to put it on the MLS for awhile?

Here’s Myrtle Beach Real Estate 2009 Reality Check # 3: Pricing for a Seller’s market vs. pricing for a Buyer’s market.

Pricing your property to give yourself negotiating room was effective in a Seller’s market, but not today.  If your property is not priced correctly from day one, it will not sell. Reducing the price later on gives potential buyers a reason to wait you out.  Their thinking is, “If the seller reduced it once, they’ll do it again… and again… and I’m in no hurry.”

Price your property where the market is, and if you receive a lowball offer that you can’t stomach, reject it. Isn’t this a better course of action than overpricing the property and never getting a single offer?

Stay tuned for tomorrow’s Reality Check, when we’ll talk about buying Myrtle Beach real estate in 2009.