July 6, 2007 - Perfectly Positioned in a Buyer's Market
June 30, 2007 - 30,000 People A Day? Are You Ready?
June 24, 2007 - Could I? Should I? Thoughts on Selling Your Home Alone
June 21, 2007 - Yahoo! Travel Names "Best Beaches 2007"
June 16, 2007 - The Real Estate Rebound Begins!
June 14, 2007 - Great Insurance News!
June 12, 2007 - Sell Faster!
June 4, 2007 - When Should I Pay Points?
June 1, 2007 - Some Good Real Estate News!
May 29, 2007 - Bigger Is Not Always Better!
May 22, 2007 - South Carolina Hall of Fame
May 21, 2007 - Our Response to 60 Minutes
May 18, 2007 - CBS News' 60 Minutes Trashes Realtors

July 6, 2007 - Perfectly Positioned in a Buyer's Market

In today's market, what can you do to stand out from the crowd and make your offer irresistible to a seller? The biggest fears many sellers have today stem from the media circus surrounding the real estate market. Specifically, sellers are worried that:
1. My property will sit unsold for months and months.
2. My property will be tied up by an offer that can't be financed.

If you can allay these fears, a mutually beneficial agreement can't be far behind! A reasonable offer becomes irresistible when combined with the promise of easy financing and a quick close. Notice that I did not use the words "lowball offer." Your offer must be fair and reasonable. If it is, the single most important thing you can do is to show the seller that you have already been pre-approved by a lender to buy the seller's property!

Pre-approval is a different animal than pre-qualification. To be pre-approved, you'll be asked for more documentation than basic credit information. If you have great credit, you may be able to be pre-approved for a loan that does not require asset and income documentation. Once you are preapproved, you may be able to negotiate a lower purchase price! The seller has confidence in your ability to make the deal happen. Many sellers are counting on the sale of their home to pay for the purchase of a new home, and a buyer who can't qualify could cost them a lot of time and money. You might also use an expedited closing date to your advantage, helping the seller avoid having to make another mortgage payment. Do you think this might help you in your negotiations?

One last thing. Being pre-approved takes much of the guesswork out of buying real estate. You'll know exactly how the lender views your ability to pay, and you probably won't have to jump through endless hoops just prior to closing. You might even enjoy the process!

June 30, 2007 - 30,000 People A Day - Are You Prepared?

The Hard Rock Theme Park is on track for its Spring 2008 opening and the groundswell of excitement is deafening. The roller coaster pieces have arrived and are ready for assembly! The preview center which opened this past April showcases this $400 million world-class attraction with over 40 rides, games and displays. This will be the biggest and most exciting grand opening that Myrtle Beach has experienced in a very long time. Hard Rock Park will have a tremendous economic impact on every aspect of life in Myrtle Beach - including real estate. If you own investment property in Myrtle Beach, you'll be well positioned to help accommodate the estimated 30,000 visitors a day next summer! If you don't, today's buyer's market is the perfect time to jump right in! Price & Company Realty can help!

June 24, 2007 - Could I? Should I? Thoughts on Selling Your Home Alone.

Should I sell my home myself? Why should I pay a Realtor to sell my home? How complicated could it be?

Let's start by acknowledging that yes, I'm a Realtor, and yes, I want to help you sell your home, and yes, I think you'll be better off working with me than working alone.

Now that this is out of the way, the answers to the above questions may surprise you. If you haven't bought or sold real estate in the last five years, you may not be aware of some newer mandatory seller disclosures, home repairs that you are liable for, mandatory CL-100 inspections, and other fees and contingencies that may delay or stop the successful sale of your home.

The success of homeowners selling their own property has steadily decreased over the last five years. In 2003, 14% of homeowners that listed their property themselves ("For Sale By Owner" or "FSBO") were successful in selling their homes. In 2004 only 10% were successful, and the same was true for 2005. In 2006 the percentage dropped again to a mere 8%. Look at that again - only 8 out of 100 FSBO sellers sold their home last year!

What happened to the other 92%? The numbers show us that 70% finally used a Realtor after much time, frustration, agony, and expense, and the rest (over 20%) simply gave up on selling their home. Using a Realtor to sell your home can save time, prevent legal issues, and, yes, save you money.

If you are determined to do it yourself, here are the six most common mistakes FSBO’s make when selling their home:

1. Failure to properly price your property to sell in current market conditions.
2. Underestimating the time and effort needed to sell a house.
3. Not being prepared to deal with an onslaught of potential buyers who perceive FSBO’s as prime targets for “low balling” - in other words, they know you're on your own, and try to take advantage of that.
4. Lack of knowledge about financing options for the buyer.
5. Lack of experience in handling the legal contracts, agreements and any disputes with buyers before or after the offer is presented. Not understanding the ramifications of your words (written or spoken) and actions.
6. Not contacting the necessary professionals early enough, including the closing attorney and inspectors (home and pest).

Selling a home has become more complicated. Seller disclosure requirements, rapidly changing market conditions and other factors have caught many FSBOs off guard, resulting in mis-priced homes and other errors that wind up costing the FSBO thousands of dollars beyond what they would have paid a Realtor to sell their home. The bottom line for any Realtor is to help sell your home in the shortest period of time and for the best price. Isn't that what you want, too?

Another crucial factor in using a Realtor is safety. These days, do you really want to invite strangers into your home with your family? Many Realtors require picture ID and pre-qualify prospective buyers even before they enter your home. The Realtor takes all of the risk associated with showing your home and conducts the showing while you and your family are safely away. Don’t fall prey to predators that are looking for a chance to get in your front door.

Protect yourself when selling your home. It could be largest single investment you'll ever make! Don't take unnecessary risks. Find a good, qualified REALTOR® who will work hard for you!

June 21, 2007 - The results are in from Yahoo! Travel's annual user survey of "The World's Best Beaches 2007".

If you were asked to name your favorite beach in the world, would Myrtle Beach make your list? Yahoo! Travel asked their subscribers to help create their top ten list, and the results won't surprise anyone who has spent significant time here on the Grand Strand.

The top ten included the usual suspects like Miami, Cancun, Hawaii, Key West and Sydney, Australia, but Myrtle Beach outranked every one of these places to take the top spot this year!

Brad Dean of the Myrtle Beach area Chamber of Commerce said, "Any ranking by a reputable source is flattering, but given the level of exposure this grants us - to millions of Yahoo! users - plus the prominence given to this list in the Yahoo! Travel section, we’re thrilled.”

We couldn't agree more.

June 16, 2007 - The Real Estate Rebound Begins! Are you ready?

Shh! Don't tell the media! The first quarter numbers are in, and I don't want to make a spectacle of myself here, but the numbers speak for themselves. If you want proof that the real estate market in Myrtle Beach is rebounding, look no further. Compared to 2004 (a year in which everyone agrees times were great), how are we really doing in 2007? Two important numbers to watch are:

1. How many home buyers are actually in town buying?
Number of single family homes sold January-March 2004: 960
Number of single family homes sold January-March 2007: 1123

2.How long do home sellers have to wait for a buyer?
Average days on market January-March 2004: 170
Average days on market January-March 2007: 165

The areas of the market hardest hit (oceanfront condos, predevelopment land) are taking longer to rebound, but reports of our death have been greatly exaggerated, and the roller coaster is about to make its way back up again. Who wants a great deal before the market leaves you behind?

June 14, 2007 - Great News for South Carolina Property Owners!

South Carolina property owners have been begging for help, which arrived in Myrtle Beach on Monday in the form of Governor Sanford signing the Coastal Property Insurance Reform Act of 2007, which should ease insurance rates along the coast.

During the past 18 months, insurance rates along the coast have skyrocketed, with some reports of up to 1000% increases. In the past four months, the state has expanded the wind pool (the state-run insurer of last resort) twice, which has led to more insurance coverage being offered in areas where it was difficult to find.

Here's what South Carolina homeowners can expect:

Single-family homeowners are now eligible for tax credits of up to $1,000 and matching grants toward the cost of making their home more wind resistant.
Homeowners who shell out more than 5% of their income for insurance premiums may receive tax credits of up to $1,250.
The state sales tax would be reduced by 3% on building supplies used to make homes more wind resistant.
Insurance companies must provide consumers with a list of all discounts available for making their property more wind resistant, and must offer such discounts.
Insurance companies must give 90 days notice for cancellation in hurricane season and 60 days notice during the rest of the year.
Insurance companies will receive incentives for covering property in the wind pool. This is critical in coastal areas like Myrtle Beach.

Experts believe that with this bill enacted, South Carolina has turned the corner and stopped the huge insurance increases.

June 12, 2007 - Sell Faster!

In a buyer's market, home buyers can take their sweet time choosing which home they like best. That’s why sellers need a competitive edge over other sellers in your area, by making your home look better than the rest.

There are six things you can do to make your home look more appealing to buyers... they won’t cost you a fortune and could make the difference in your home being sold versus your neighbor’s.

1. Paint the House/Fence. A new coat of paint can go a long way to making your home look newer. Bold colors reflect your personal taste, so make sure you choose neutral colors that will appeal to the most number of people.

2. Clean the Yard. Take the time to clean up the yard. Rake the dead leaves and grass. Put away any tools or equipment that may be lying around. If buyers see a mess in your yard, they’ll think twice about wanting to see the inside of the house!

3. Plant New Flowers and Trees. Another easy and inexpensive way to improve the look of your home is to plant some new flowers and/or trees. Adding some new color can make a big difference in brightening up your home’s appearance and make it look more cheery to prospective buyers.

4. Enhance Your Walkway. You can boost your home’s look by adding a brick- or stone-paved walkway to the front of your house. Dress it up even more by adding some solar-powered walkway lights. They’ll make your home more inviting by adding more ambiance.

5. Replace Your Front Door. You may think it wouldn’t make a difference, but changing the front door can change the entire look of your home. Replace that stale and plain-looking door with a nice wooden one with a decorative, beveled window.

6. Add Window Treatments. They say windows can be the soul of your house, so it’s important to dress up your home by dressing up your windows. Add some decorative shutters to keep your home from looking plain and boring. Adorn them even further by adding some plant boxes. You’ll be amazed at how much a simple thing can improve your home’s appeal.

7. Hire The Right Realtor. Not all real estate companies (and Realtors) are created equal. The right Realtor could mean a higher selling price, a shorter selling time and a minimum amount of hassles. Unfortunately, the world is filled with agents who are wrong for you: the housewife who sells an occasional house because she needs a bit of spending money; an insurance salesman who believes he can handle two careers at the same time; or a family relative who really needs your business. A good Realtor will know your local market well, supply you with information on past sales, current listings and will also provide you with a solid, proven marketing plan which should indicate how much your home should go for and, more importantly, why it should go for that price! If you are outside our service area, we would be happy to refer you to a Realtor with whom we are familiar, who shares our commitment to top-notch service.

Home buying season is here, and it’s time to grab the competitive edge over other home sellers by sprucing up the look of your home. Luckily, adding to your home’s curb appeal doesn’t have to set you back financially. Adding some color and a few adornments will go far in helping you sell your home faster. For more tips, contact a Price & Company agent today!

June 4, 2007 - "When Should I Pay Points?"

We are frequently asked to give our opinion on paying points to buy down the rate on a mortgage.

Many folks believe that a higher interest rate means that you’ll pay more interest over the life of the loan, and that "buying down" the interest rate (through the payment of non-refundable fees and discount points) you’ll pay less interest over the long term.

While this is true, many times it does NOT make practical sense. Here is an example:

On a loan of $300,000, for the sake of argument, let’s assume that your closing costs will be around $2,000. In today’s market, a well-qualified buyer could obtain a mortgage at about 6.25% for a 30 year fixed rate mortgage with no points or closing costs. However, the same well-qualified buyer might choose to “buy down” the rate to 6% by paying points and fees of about $3,300.

Does it make sense to do so? Most people have no idea how to figure this out. Let’s go through this together!

The principal and interest (P&I) payment on a $300,000 loan at 6.25% would be $1,847. If you roll the closing costs into the loan (rather than paying the $3,300 out of pocket), the loan amount would then become $303,300. At 6%, the P&I would be $1,818, or a savings of $29/month.

Here’s the million dollar question: Does it make sense to give up $3,300 in price appreciation in order to save $29 per month? Figuring this out is fairly easy. Divide your additional cost ($3,300) by the monthly savings ($29) and voila! It will take 113 months (or more than nine years) to recoup the loss of equity. Or, to put it plainly, if you pay off the loan before this time, you will have lost money.

Be careful of seemingly low interest rates without full and up-front disclosure of the hidden costs.

June 1, 2007 - Some Good Real Estate News!

June 1, 2007 -- With the mainstream media apoplectic again with talk of the housing "bubble" and mortgage "crisis," those expecting a steep and sustained nationwide decline in home prices are going to be disappointed once again.

The Office of Federal Housing Enterprise Oversight (OFHEO) just released its House Price Index for the first quarter of 2007. This most comprehensive of home-price reports shows that nationwide prices increased 0.45% in the first quarter of this year, and were up 4.25% in the past four quarters.

To put these numbers into context:

From 1990 through 1997 -- boom times in real estate by any measure -- reported four-quarter price appreciation was less than the 4.25% just reported 28 out of 32 times.
During that same time period, individual-quarter appreciation was less than the 0.45% just reported 14 out of 32 times -- including six nationwide quarterly declines.

Yet we can recall no discussions of pervasive real estate "bubbles" or fears of steep, widespread declines during the 1990s.

Here's what will likely be a well-kept secret: Seven western states actually showed double-digit gains in the past 12 months, and 12 others had increases of over 6%. Only seven states came in with four-quarter declines (RI, CA, NH, OH, NV, MA, and MI). All are understandable: California and Nevada overheated more than most states in the three previous years, while the other states' economies aren't doing very well. Only Massachusetts (-0.56%) and Michigan (-0.86%) actually had year-over-year declines.

So what did the mainstream media do with this ray of sunshine?

The Associated Press searched for a way to go negative on the OFHEO release, and settled on the idea that it "provided the latest indication of a modulated slowdown in the once-sizzling housing market."

This is indicative of what we've come to expect from the major purveyors of 'news' in the era of sound bite journalism. We will continue to report the news accurately, and let you draw your own conclusions.

Thanks to Tom Blumer and newsbusters.org for the statistics and interpretation.

May 29, 2007 - Bigger is Not Always Better!

May 29, 2007 -- Imagine for a moment that you own a homesite in a beautiful gated community, and you have decided to build a spectacular high-end house there. It seemed like a great idea - especially when the market was booming. But now that your lovely home is complete, and you've had it listed with a luxury-specialist high powered Realtor recommended to you by the builder and developer, it sits... and sits... and sits... while you continue to make mortgage payments every month... eating into your profit!

Why, you ask, hasn't the home sold? You've priced it where your Realtor told you it should be priced. Yet nothing. As important, the listing is about to expire, and you're not sure what to do now!

This is exactly the situation in which one of our clients found themselves recently. The decision he had to make was critical - and would have a profound impact on his financial future! Decisions like this happen every day. Who will do the best job getting YOUR property sold?

The challenge in selling this particular home is that it is in a gated community that does not allow "For Sale" or "Open House" signs to be displayed. In addition, the entrance gates are not manned by a guard - it is an electronic gate with a telephone connection. Consequently, it is prohibitively difficult for prospective buyers to see the house without a prior appointment. Even holding an open house is difficult given the dual challenges of entry gates and signage! This is, of course, the reasons given by the previous listing agent when asked why the property didn't sell.

This particular situation required something that most real estate agents don't do, and the big real estate franchises don't promote: thinking outside the box! This situation cried out for the results-oriented creativity of a small, independent real estate group like Price & Company.

We didn’t reinvent the wheel, but we were very creative in getting the word out – and the people in. The result? We sold the property in just under 90 days, for over 96% of the asking price.

How may we put our results-oriented creativity to work for you?

May 22, 2007 - South Carolina Hall of Fame

May 22, 2007 -- Every year in February, one of the best shows in town takes place in an unlikely place - and it's absolutely free!

It's the induction ceremony for the South Carolina Hall of Fame, held right here in Myrtle Beach. The Hall of Fame itself is tucked away in a corner of the Myrtle Beach Convention Center, and features portraits and short biographies of the men and women of tremendous accomplishment.

Among the inductees are such famous people as President Andrew Jackson and musician John "Dizzy" Gillespie. But one might also learn about less notable, but equally accomplished folks, like high school coach John McKissick, who has won more football games during his career than any other coach, at any level of the game, ever.

You'll find four signers of the Declaration of Independence, but you'll also find one of this year's inductees, Judge Matthew Perry, a United States Army veteran who challenged the status quo against segregation of public golf courses, parks, hospital waiting rooms, colleges and public schools, and who eventually became the U.S. District Judge for the District of South Carolina. His acceptance speech was humble, but received two standing ovations.

The South Carolina Hall of Fame is open every day that the Myrtle Beach Convention Center is open. For more information, visit their website and the Convention Center website.

Special thanks to Joyce Armor, editor of Coastal Business Life Magazine, for reminding us of this hidden treasure.

May 21, 2007 - Our Response to 60 Minutes

May 21, 2007 -- CBS News' 60 Minutes gave 13 minutes to the real estate industry on May 13th, but the recognized experts in the industry - REALTORS® - were given the silent treatment. The predictable result, one-sided journalism and a number of egregious errors (some of which have already been retracted on CBS' website), serves nobody.

So, let's set the record straight, once and for all:

1. The piece featured interviews with a representative from the now-defunct eRealty, as well as the president and CEO of online discount broker Redfin, but no one from the National Association of Realtors (NAR), even though NAR twice offered and prepared spokespersons for interviews with Leslie Stahl. CBS made the decision to interview opponents of traditional Real Estate agents, and allowed them to make inaccurate and unfair accusations about REALTORS® and NAR policies.

2. This did not come out of left field. In fact, NAR spent nearly a year working with CBS, briefing producers on many of the issues that were ultimately discussed. The producers even attended the REALTORS® annual conference last November and met with NAR's legal counsel in Chicago. (NAR is in communication with 60 Minutes about its unbalanced reporting and presentation of misinformation, but the damage has been done.)

3. Error Number One: "The six percent commission is 'sacrosanct.' Fact: All real estate commissions are negotiable. The nationwide commission average is actually 5.1 percent, according to Real Trends.

4. Error Number Two: "NAR is the industry's 'governing body.' Fact: NAR is a trade association. It does not govern the real estate industry. Individual states regulate real estate transactions and license agents and brokers.

5. Error Number Three: "In 2003, NAR issued new rules of its own that threatened to block Internet discount brokerages' access to the MLS." Fact: The Virtual Office Website policy did not block access to MLSs for discounters or any other brokers who are members of the MLS.

6. Error Number Four: "The MLS is the database that lists virtually every home for sale in the country." Fact: There is no single national MLS. Rather, there are more than 900 local and regional multiple listing services. These are not simply "databases" but private exchange of offers of cooperation and compensation between real estate brokers.

7. Error Number Five: "Eight states have 'minimum service laws' that require REALTORS® to provide a level of service many Internet discounters can't afford." Fact: "REALTOR®" is a trademarked term and should never be used synonymously with "real estate agent." The intent of minimum service laws is to ensure consumers receive a minimal level of service from licensees.

8. Error Number Six: "The real estate brokerage industry has a powerful lobby. Eleven states flatly prohibit rebates." Fact: The intent of anti-rebate laws is to prevent kickbacks in real estate transactions, not to limit brokers' incentives to attract customers. The brokerage industry does not lobby for anti-rebate laws.

One final thought. We find it ridiculous that real estate agents and the Multiple Listing Services (MLS) are being called "anti-competitive." The truth is, we must cooperate with each other to ensure a successful transaction. The first MLS was created more than 100 years ago as way for brokers to share their listings with each another as a way of procuring buyers for their properties more quickly and efficiently than each could on their own. The MLS is a tool to help listing brokers attract brokers with buyer clients. Without the collaborative incentive of the existing MLS, brokers would create their own separate systems, fragmenting rather than consolidating property information.

The bottom line is, if you have a home listed for sale with us, you expect us to do everything we can to find a buyer for your home. You don't care whether the buyer is represented by a full-service broker or an online discount broker. We don't, either. If they can afford to buy your home, and they want to buy your home, we will make a deal. That's the way it should be. Without an effective MLS, buyers would have to visit every real estate company in town to find out what's for sale. Now THAT'S anticompetitive!

How much easier can it be? Look how easy it is to search the whole MLS!

May 18, 2007 - CBS News' 60 Minutes Trashes Realtors

May 18, 2007 -- Did you catch last Sunday’s “60 Minutes” piece on the real estate industry? In what amounts to a 13 minute infomercial for a Seattle-based online discount brokerage company, CBS made the unilateral decision to interview opponents of “traditional” real estate agents, allowing them to make inaccurate, blanket comments disparaging Realtors. Other than a few select comments from one “traditional” Realtor (also based in Seattle), no one from the National Association of REALTORS® (NAR) appeared, even though they had worked with Lesley Stahl and CBS for the past year to prepare for the story and offered spokespersons to be interviewed. Our next blog entry will go into some of the things that were said - and our response.