Amid Super Bowl Debris, Summerville Mortgage Rates Remain

Except for the few chip remnants that will dwell down there wedged between sofa cushions until spring cleaning time, the principal residue from most Summerville Super Bowl parties is little more than a jumble of disconnected memories. There was the seemingly endless progression of pregame interviews, clips from past Roman numeralled contests, silly football-themed features, prognostications (somehow seeming to favor Atlanta, even though the serious odds-makers never wavered from their confidence in a Patriots win)—then, finally, the game itself. Well, the beginning of the game, anyway. The actual contest was suspended at length while Gaga was suspended from the rafters. But at long last, once the game resumed, that segment of Summerville’s citizenry that wasn’t already Super Bowled-out was witness to New England’s march into the record books.

At least crestfallen Falcons fans had the consolation of a thrilling season and their quarterback’s rise to become the league’s Most Valuable Player. They’d also been witness to a memorable event in sports history. One thing is for certain: New England sewed up its place at the top of the pro pigskin record charts—and it’s likely to be a long time before they’re dislodged.

Meantime, the non-Super Bowl-fixated portion of the world hummed along as it does on any Sunday. In our Summerville real estate world, not a lot of home-showing activity was going on—but it was against a background of some mortgage rate news that was the exact opposite of what was going on inside NRG Stadium. The expected wasn’t happening as predicted. The mortgage rate favorite was a no-show. The week’s mortgage rate outcome was a surprise. Those mortgage rates that are supposed to gradually rise this year? They didn’t.

As CNN Money headlined, “Mortgage rates kick off new year with a drop.” It was the first downturn in 30-year fixed rates since the presidential election. Freddie Mac said that the average rate fell from 4.32% to 4.2%. “Here’s some good news to start the new year,” they said; “mortgages are a little cheaper.”

As everyone knows, when Summerville mortgage rates fall, it’s good news for Summerville buyers and sellers. For homeowners looking to join the Summerville listings, it means encouragement for their prospective buyers, because it offsets increases in asking prices. And in fact, Summerville’s real estate scene continues to be most favorable. Monthly mortgage payment numbers are still suspended at near-historical lows (unlike Lady Gaga, whose suspension was way up there).

The Super Bowl parties may be over for a while, but at least until March Madness fires up, Summerville house-hunters can now make the most of it. Whether you’ll be looking to list or to do some serious house-hunting, give me a call—the Summerville real estate playing field is clear of distractions!

Waiting to List Your Summerville, SC Area Home? Maybe Not…

 

If this is going to be a year of upsets, the rules for when Summerville listings are best initiated might be primed to fly out the window. There’s no guarantee that 2017’s Summerville listing performance will bend the rules, but if the National Association of Realtor’s® news site is right, it’s a definite possibility.

The history has long demonstrated that the most opportune time of year to add your home to the Summerville listings is during the peak spring and summer seasons. When you look at the volume of home sales through most years, those months do look inviting. There are exceptions, but for the most part, spring and summer regularly excel in sales volume.

Last week, the Realtor® website ran an article in their Trends area headlining that “This Year, Sellers May Benefit from Listing Early.” Their reasoning was short and sweet—citing recent facts, then drawing a conclusion that’s the opposite of what they seem to indicate. Here are the facts:

1. Supply. It’s a fact that from one end of the country to the other, the residential inventory (supply) is starkly reduced. According to the NAR, “Inventory levels at the beginning of 2017 are at multiyear lows.” Thus, homeowners who list now “face very little competition.”
2. Demand. Even though the late fall and winter months have traditionally shown weak demand, the threat of mortgage rate hikes  —then the actual rises —may have been all that was needed to instill a growing sense of urgency among buyers. Early results reflect buyer demand that’s “abnormally strong” for this time of year.
3. Optimism. With consumer confidence at a 15-year high, once the spring buying season gets going in earnest, Summerville buyers might find themselves in “buying competition” that will “get fierce.”

These trends are all well-documented. Yet at first blush, they seem to argue against listing your home now. After all, wouldn’t it still make sense for to follow the traditional dictum —to hold off until that fierce competition takes hold? The answer that flips such a conclusion is found in the fourth fact:

4. Sellers Will be Buyers. Overwhelmingly, national surveys suggest that the homeowners behind most Summerville listings will also become buyers once they have sold. In fact, an estimated 85% of American home sellers plan to buy another home! If that’s correct, it’s not surprising that they’ll be grateful if they are quick to sell into this winter’s market. That will not only help them get a jump on the crowd come springtime—it will also lengthen the odds that they can cash in on mortgage rates before they rise substantially. All of a sudden, the net advantage to listing early could be substantial!

The short takeaway is that simply accepting the old common wisdom warrants a second look in 2017. If you are one of our Summerville homeowners who automatically presumed the wisdom of waiting a while longer to join the Summerville listings, it might pay to reassess. Give me a call  TODAY at 843-499-1928 if you’d like to discuss how your plans fit into today’s broader residential picture —and how to take maximum advantage of this year’s market!

Charleston SC Real Estate: Special shout out to our friends and clients....

Free Summerville, S.C Real Estate Agent Commissions: They’re Logical

Sooner or later, all children need to be warned about the fallacy of something for nothing. It’s an important lesson and a milestone. Very little ones are too young to be exposed to the idea that when they grow up, they should automatically examine the motives behind anything that seems to be offered for free. Until then, it’s one of the joys of parenthood to enjoy shielding the innocence of their kids for as long as possible. But sooner or later, for their own good, the basic lesson from the adult world has to be learned: outside the family, there’s no such thing as a free lunch.

That could be why first time home buyers can be forgiven for having a degree of skepticism when they learn that the Summerville real estate agent who is offering to help them is willing to do so at no cost to them!

Hold it, they automatically think; where’s the catch?

It only sounds like “something for nothing.” When we make that offer, we Summerville real estate agents aren’t, in fact, giving away our professional services as a charitable enterprise. The work we do (and the expenses we encounter in the course of doing it) will be compensated, but the bill will be presented elsewhere. It’s only sort of like a free lunch. The way it works is not just straightforward—it’s also logical.

When homeowners decide to sell Summerville homes, the popular choice is to call upon the resources of a licensed Summerville agent. The commission for doing so (often 5% or 6% of the sale price) is considered when arriving at the asking price—and since most of the other homes listed for sale have made similar arrangements, that amount should not put the property at a competitive disadvantage. Something like nine out of ten homeowners make that same decision, if for no other reason than the powerful marketing resources that can then go into the sales effort.

On the other side of the transaction-to-be, potential buyers can be offered the professional assistance of a real estate agent at no cost because of the traditional practice in the industry—the agreement between buying and selling brokerages to share in the selling agent’s commission. It’s a bit like what you run into when you use some cities’ toll bridges, where a toll equal to the value of two passages is charged coming into the city, but none as you leave. It’s doubly efficient that way.

In fact, I suspect the efficiency argument in American real estate practice isn’t the entire reason that this ancient system developed. Since a seller hopes to reap the proceeds of the sale, it’s fair to assume that he or she is the party who is better able to justify an expense—especially if it will only be paid when a successful sale is concluded. For the buyer, receiving the benefits of a professional’s services with no bill presented. Come to think of it—it does seem a little bit like free lunch, doesn’t it?

Summerville listings are usually less numerous this time of year—which makes it an attractive time for sellers to put their homes up for sale. If you are thinking of selling or buying, there’s less competition than will be the case come springtime—ample reason to give me a call!

Charleston SC, Real Estate: Asking Price, To Drop or Not to Drop

For more than a year, it’s been the happy trend across the nation for the average DOM (days on market) for residential properties to have been declining. It’s a “speed of sale” measure—one that most Charleston, SC home sellers hope will reflect that it won’t be long before they are handing the keys to happy new owners.

There are some ruling considerations that go into establishing a winning Charleston, SC asking price. One is psychological: thinking of a buyer’s frame of mind, most people don’t want to be the only ones who are interested in a house. When a slightly lower-than-comparable asking price is part of the marketing message, it draws a crowd. Another consideration is the search bracket. Knowing how buyers tend to bracket price range parameters for similar Charleston, SC homes is something I can help with. If comparable homes have been selling in a range that tops out at $400,000, asking $410,000 (so you can discount it in later negotiations) is a mistake: your property won’t even appear on search results you’re aiming for.  

It is said that pricing is an ongoing discussion—something that holds true if the activity level is less than expected. In every dissertation, oration, article, comment, FAQ, and essay about successful house sales, the dictum is the same: if the place doesn’t sell, first check the asking price.

Sometimes that truism can seem indisputable. If the property in question has been listed at an asking price that’s higher than comparable Charleston, SC houses—other homes that have sold—unless outside factors have slowed all area sales, the asking price is probably the stumbling block. A homeowner can quite reasonably object that their property has unusual qualities that make direct comparisons with other Charleston, SC homes inexact, but that logic may not be powerful enough to counter the market figures that buyers can see (remember that they don’t want to be the only ones who are interested). Sometimes even for a home that shows spectacularly, lowering the asking price can be the simplest and quickest route to a “sold” sign on the front lawn.

In the case of those Charleston, SC homes where Charleston asking price conformity isn’t the issue—as when there simply are no other properties that are at all similar—if lowering the asking price is not indicated, it will simply become a waiting game: waiting for the buyer who appreciates the special character of the property. The good news is that there IS a buyer out there for every property; the bad news is that unique properties attract unique buyers—as in, there are fewer of them. But there is some second good news: when they do show up, they are apt to fall in love with the place!

Pricing is part math and part skill, and since the market is constantly changing, it’s a skill that rewards experience tempered by consistent monitoring. I monitor Charleston, SCreal estate full time so I can provide the most timely assistance and advice in all phases of selling and buying. I hope you’ll give me a call!

Exploring the Best Time to Buy a House in Summerville

Many of  who call Summerville home find that the beginning of the new year serves as a useful benchmark. This is when it’s easiest to collect the bygone year’s household bills and receipts and stash them in the drawer, box, or envelopes marked “2016” to be revisited at tax time. Once all the holiday ornaments are safely stored for next year, it’s time to embark on the coming year with a refreshed outlook and energy.

When you go looking for fresh insights that will be relevant to Summerville real estate buyers and sellers, some of that New Year’s enthusiasm can come in handy. Particularly when you come across news items with headlines like “The Best Time to Buy a House” or “The Best Time to Sell a House.” It’s not that the topics aren’t interesting, but since we know darned well that there’s no such thing as a single “best time” to buy a house, it takes a little extra energy to read further. The best time to buy a house in Summerville depends on the area, neighborhood, on the current market activity which varies from year to year—and on the qualities of the property itself.

Nevertheless, coming across the Business Insider piece headlined, “New research reveals the single best day of the year to buy a house,” it was simply too tempting to pass up. The best single day! This was nonsense, of course, but with fresh 2017 energy to spare, it had to be checked out! Here’s what was revealed:

This analysis resulted from some past research dusted off from RealtyTrac’s review of more than 32,000,000 home and condo sales from across the nation. It had taken 15 years to collect all that data, but when they put it all into the proper columns and added and divided in the way statisticians do, they came up with the final answer:

The best day to buy a house is October 8.

Now, since it’s going to be a long time until the next October 8 (it will fall on a Sunday), some secondary news might be of more immediate interest to Summerville readers. The best month to buy may be October, but the second best month to buy a house is February! So wouldn’t it follow that January is a good time to start looking?

The way RealtyTrac defined the “best” time to buy was by comparing the sale price with the fair market value. For buyers, the best day was the one with the biggest average discount. October 8 was that day.   

Now, the practical use for this information here in Summerville is very limited for a couple of reasons. First off, they really meant “best day to close” a sale—leaving open the more tactical consideration, which would probably be the best day to make an offer. Then, too, the residential market and resulting sales results over the past 15 years have been so varied and sometimes so wildly atypical that generalizing from them could yield almost any answer. Also, this was a nationwide survey—so even just the way weather here in Summerville differs from the national average would certainly affect the results.

But the ideas written about did have some practical value. They highlight the notion that for buyers, the late fall and winter months might be a pretty good time to buy a house in Summerville even when there are comparatively fewer properties on the market.

It’s true that today there are some great buys to be had—which makes it a great time to give me a call!

In Summerville, S.C Home Negotiations, Evaluating an Offer is an Art

Once we have marketed your Summerville home successfully, there follows the delightful interlude during which the eager buyer awaits your response to his or her offer. It will be 100% delightful if, in evaluating the offer, all details are as you hoped and expected. But many times, evaluating an offer results in more than a simple “Yea” or “Nay”—the details can be crucial:

Offer Price. Suppose the top line number is close enough to your asking price to bring a smile to your face. Your Summerville property’s value has been acknowledged by the buyer—it’s in line (or better) with neighborhood comparables, and your net after expenses will enable you to move on to your next residence without financial strain. Evaluating an offer only begins with that eye-catching number, but it doesn’t end there. There are all the other elements, many of which boil down to the level of risk going forward.

Deposit. High on the list is the pledged amount that accompanies the offer. Whether it’s called a deposit, earnest money, or pledge, this serves to instill confidence that when you are evaluating the offer you know that it’s backed up with more than wishful thinking. If the amount is greater than the customary minimum, it’s a signal that the would-be buyer is more than minimally serious about completing the transaction, that their financial ability to execute is demonstrable—or both. Evaluating this detail of an offer does, however, involve factoring in whether it would be unduly easy to “de-commit” the committed amount, as well as the true liquidity of the pledge (overseas bank deposits, for instance, raise eyebrows).

Inspection provision. Almost every serious offer will be contingent on the property’s condition passing inspection—but this is a risk element that’s largely controllable by the seller. It’s the reason some Summerville sellers get ahead of the game by investing in their own inspection before listing. Twelfth-hour discoveries of maintenance issues that could have been fixed beforehand are apt to throw a disproportionate amount of cold water on a transaction that had been proceeding smoothly. If a condition has been properly disclosed in advance, evaluating an offer will include verifying acknowledgment of disclosures.

All the rest. An offer may have any number of other provisions, so properly evaluating an offer means carefully weighing the practical impact each may have. The timing elements can be  crucial. Too lengthy a closing can be inconvenient and add a degree of uncertainty. Too swift a closing may create an interim “no-place-to-live” situation—and wow—can that be awkward and expensive! An offer that is contingent on the sale of the buyer’s home adds a degree of uncertainty that needs to be evaluated with knowledge of that area’s specifics. Any detail that introduces uncertainty adds to the ultimate risk.

Success in evaluating an offer for your Summerville home—or comparing multiple offers when that auspicious situation occurs—often means a lot more than a simple yes or no decision. Coming up with a strategic counter-offer is often called for—and that’s when there’s no substitute for having an experienced agent by your side to help fashion a strategic win-win counter offer.

To discuss these and all the other steps that will result in the successful sale of your property, give me a call to arrange a no-obligation consultation.