For Sale By Owner May Hurt Your Sale in the End

FSBO

For Sale by Owner Isn’t As Easy as it Looks

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.
Here are five reasons:
1. There Are Too Many People to Negotiate With
Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:
•The buyer who wants the best deal possible
•The buyer’s agent who solely represents the best interest of the buyer
•The buyer’s attorney (in some parts of the country)
•The home inspection companies, which work for the buyer and will almost always find
some problems with the house
•The appraiser if there is a question of value

2. Exposure to Prospective Purchasers
Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet
Where do buyers find the home they actually purchased?
•44% on the internet
•9% from a yard sign
•33% from a Real Estate Agent
•1% from newspapers
The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult
The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

5. You Net More Money when Using an Agent
Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.
Studies have shown that the typical house sold by the homeowner sells for $209,000, while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $26,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line
Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

If you are interested in where the Bluffton / Hilton Head Island real estate market is going? Give Jo Anne or Tony Rizza (843-301-5825) a call to better understand the current market, see the latest available properties, or to list your own home!

With over 25 years of experience, our team is ready to help!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

Don’t Wait – Buy Now!

Don't pay more, buy now

Don’t Wait – Buy Now

Buy now to keep costs down on the house of your dreams. As you can see each state is appreciating at different rates. South Carolina is appreciating at one of the highest rates in the States year-over-year. Waiting for that right moment may wind up costing you more than you thought. Don’t wait, buy now!

Add that interest rates will most likely be going up in 2016 and waiting will cost you more than it has in the past couple of years. Don’t miss out on a great opportunity to find your perfect home.

The October numbers reinforced the facts that the real estate market continues to gain strength:

  • The annual adjusted sales are currently at a 5.36 million pace.
  • 14,684 homes sell every day in the United States.
  • October marked the 44th consecutive month of price gains.

If you are interested in where the Bluffton / Hilton Head Island real estate market is going? Give Jo Anne or Tony Rizza (843-301-5825) a call to better understand the current market, see the latest available properties, or to list your own home!

With over 25 years of experience, our team is ready to help!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

Yes! You Do Need a Vacation Home!

Hilton Head Vacation Home

Does a vacation home sound good to you? We have the solution, Hilton Head is the perfect home away from home! Hilton Head Island boasts miles of beaches, tennis courts, championship golf courses, amazing restaurants, moderate temperatures and beautiful lowcountry scenery. If you own a vacation home on Hilton Head your next vacation can never come quick enough! Don’t miss out on a great opportunity to be part of the Hilton Head Island community.

If you are interested in where the Bluffton / Hilton Head Island vacation home market is going? Give Jo Anne or Tony Rizza (843-301-5825) a call to better understand the current market, see the latest available properties, or to list your own home!

With over 25 years of experience, our team is ready to help!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

 

Feature Community: Rose Hill Plantation

Rose Hill Collage

Rose Hill Plantation is tucked away in the heart of Bluffton, South Carolina.

With over 2,000 acres, Rose Hill Plantation offers residents a variety of lifestyle activities and homesites to choose from, including, country estates, marsh waterfront sites with sweeping views of the Colleton River, or large golf fairway homesites.

Residents enjoy access to the Colleton River for fishing and boating, two clay tennis courts on the South side, two hardcourt tennis courts on the North side, a meeting center, three swimming pools, an 18-hole golf course, and a complete equestrian center with 50 acres of pasture and 17 miles of riding and hiking trails.

Rose Hill Plantation also features the Rose Hill Mansion. The historic 1850’s plantation house was built by planter and physician, Dr. John Kirk and his wife. In 1987, The Middleton White Foundation purchased the property and began a decade-long restoration process. Today, the property is available for scheduled group tours, weddings, and corporate events. (As the property resides within Rose Hill Plantation‘s gated community, reservations are required to protect the privacy of residents.)

To view current listings in Rose Hill Plantation, click here or for additional information on this great community, contact Jo Anne or Tony Rizza at 843-301-5825 to view available properties today!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

Do You Really Need To Put 20% Down?

borrow

The days of having to put 20% down are gone! There are a variety of borrowing options, some begin with as little as 3% down. If you want to own your own home, now is as good a time as any to jump into the market!

In September:

  • 70% of first-time buyer loans had down payments <5%
  • The median FICO score was 708
  • 27% had DTIs greater than QM limit of 43%

If you are interested in where the Bluffton / Hilton Head Island real estate market is going? Give Jo Anne or Tony Rizza (843-301-5825) a call to better understand the current market, see the latest available properties, or to list your own home!

With over 25 years of experience, our team is ready to help!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

Know the Facts: Buying a Home vs Renting

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The Facts About Renting:

According to the 2015 Rent.com Rental Marketing report:

  • 88% of property managers raised their rent in the last 12 months, there does not appear to be any signs of stopping.
  • 66% of property managers predict that rental rates will continue to rise in the next year by an average of 8%.
  • 53% of property managers said that they were more likely to bring in a new tenant at a higher rate, than negotiate and renew a lease with a current tenant they already know.

Why Buy Your Own Home:

Making the leap to purchase your own house can be scary, we know that. Buying a home doesn’t have to be a terrifying experience. Renting can be tiring and stressful, year to year not knowing where you are going next or how much you will be paying per month. We are here to help guide you to the home of your dreams and the security you deserve. Remember the top three reasons to own a home are:

  1. The opportunity to build equity
  2. A stable and safe environment
  3. The freedom to choose your own neighborhood

If you are interested in where the Bluffton / Hilton Head Island real estate market is going? Give Jo Anne or Tony Rizza (843-301-5825) a call to better understand the current market, see the latest available properties, or to list your own home!

With over 25 years of experience, our team is ready to help!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

Fannie Mae’s Housing Forecast [INFOGRAPHIC]

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Some Highlights:

  • 30-year fixed mortgage rates are projected to increase steadily over the next year.
  • Housing Starts will well surpass 2015 numbers.
  • Home Sales will reach an annual rate of over 6 million by the fourth quarter of 2016.

If you are interested in where the Bluffton / Hilton Head Island real estate market is going? Give Jo Anne or Tony Rizza (843-301-5825) a call to better understand the current market, see the latest available properties, or to list your own home!

With over 25 years of experience, our team is ready to help!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

Applying For A Mortgage: Why So Much Paperwork?

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We are often asked why there is so much paperwork mandated by the bank for a mortgage loan application when buying a home today. It seems that the bank needs to know everything about us and requires three separate sources to validate each and every entry on the application form.

Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.

There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any time in history.

  1. The government has set new guidelines that now demand that the bank provebeyond any doubt that you are indeed capable of affording the mortgage. During the run-up in the housing market, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again
  2. The banks don’t want to be in the real estate business. Over the last seven years, banks were forced to take on the responsibility of liquidating millions of foreclosures and also negotiating another million plus short sales. Just like the government, they don’t want more foreclosures. For that reason, they need to double (maybe even triple) check everything on the application.

However, there is some good news in the situation. The housing crash that mandated that banks be extremely strict on paperwork requirements also allowed you to get a mortgage interest rate probably at or below 4%.

The friends and family who bought homes ten or twenty ago experienced a simpler mortgage application process but also paid a higher interest rate (the average 30 year fixed rate mortgage was 8.12% in the 1990’s and 6.29% in the 2000’s). If you went to the bank and offered to pay 7% instead of <4%, they would probably bend over backwards to make the process much easier.

Bottom Line

Instead of concentrating on the additional paperwork required, let’s be thankful that we are able to buy a home at historically low rates.
Sit down with Jo Anne or Tony Rizza (843-301-5825) to better understand the process and find your dream home in Hilton Head / Bluffton real estate market today!

With over 25 years of experience, let our team help you find your new home!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

New Construction, New Home Sales Surge

New-Home-Sales-KCM

According to the latest report from the US Census Bureau and the Department of Housing and Urban Development, newly constructed home sales jumped 5.7% month-over-month and 21.6% year-over-year to an annual pace of 552,000.

Many buyers are looking to the new homes market to make up for the lack of existing home sales inventory. National Association of Home Builders Chief Economist David Crowe explains:

“Today’s report indicates the release of pent-up housing demand as the overall economy strengthens, consumer confidence grows and mortgage interest rates remain low. The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015.”

Regionally, the Northeast led the way with a 24.1% increase in new home sales, followed by the South (7.4%) and West (5.4%). Sales in the Midwest declined by 9.1%.

The inventory of new homes for sale currently sits at a 4.7-month supply down slightly from July (4.9) and significantly from August 2014 (5.4).

Buyers who purchased a new home were willing to spend more to get the amenities that they wanted. The median home price for new homes was $64,000 higher thanexisting homes in August at $292,700!

Approved applications for building permits increased 3.5% over July and 12.5% over this time last year. Permit applications are seen as a strong indicator of builder confidence in the market.

Bottom Line

Buyer demand continues to outpace inventory of homes for sale. If you are thinking of selling your house this year, now may be the time to list before builders have a chance to replenish the supply of new homes.

For more information on new construction or available properties in the Bluffton/Hilton Head Island area, give Jo Anne or Tony Rizza (843-301-5825) today to find out more about new construction in the Bluffton/Hilton Head Island area.

With over 25 years of experience, let our team help you find your dream home!

Hilton Head Real Estate Partners
Partnering with you every step of the way.

Buying a Home Remains 35% Less Expensive than Renting!

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In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.

The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The other interesting findings in the report include:

  • Interest rates have remained low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation. “In the past year, these two trends have made homeownership even more affordable compared with renting.”
  • Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
  • Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.  

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, lock in your housing cost with a mortgage payment now.

If you are debating buying a home this year, sit down with Jo Anne or Tony Rizza (843-301-5825) to better understand the Hilton Head / Bluffton real estate market. We can help you evaluate what opportunities available in the Hilton Head / Bluffton area would best fit your budget!

With over 25 years of experience, let our team help you find your dream home!

Hilton Head Real Estate Partners
Partnering with you every step of the way.