Living and Working in Charleston SC

Entries from June 2007

Cracked Foundations in the Charleston Area

June 29, 2007 · Leave a Comment

Theories vary about why we have cracked foundations here mostly for homes built in the 70’s.  Some think it’s because we have an earthquake fault in Summerville.  Others believe it’s poor site prep.  Probably a little of both.  Mount Valley and Ram Jack would be able to speak more autoratatively than me.  My approach is from a real estate standpoint.  It’s a pretty bitter pill to swallow for the owner to ante’s up the 10 to 20 g’s to get the repairs done, only to find their home is still devalued. 

Cara and I  actually bought one of these homes two years ago.  We were trying to get the most home for our money, the repairs were guaranteed, and we were thinking we were going to be here for quite a while.  Our theory was that it devalued the home by about $10,000 and we negotiated accordingly. 

When we’re working with buyers and we see one of these homes, what we tell people is that it puts a cloud of sorts over the property and makes it less marketable.  It will take longer to sell, and an educated buyer is going to want at least $10g taken off the price, when the repairs have been completed…and more if they haven’t.   You do have the possibility that someone will fall in love with your home and pay closer to full price, but that chance is pretty slim.  Whenever we’re looking at homes, we always inspect the garage carefully to look for any obvious cracks.  You can tell if it’s cracked all the way through by seeing if the crack is level….if both sides of the crack are on the same level.  It the two sides of the crack are at different levels, then it’s not a surface crack.  We also look for excessive cracking in the bricks outside the home if it is a brick home.  And we look for horizontal cracking inside the homes.  Vertical cracks are more typical from standard settling.  Horizontal cracks indicate potential structural issues.  You’ll want to have your inspectors look more closely. 

The biggest problem with buying one of these homes, is that you can pay 100 engineers to inspect the property, and they are all going to qualify any statements they make with disclaimers that say the the inspection is limited to what they’re able to see. 

Categories: Uncategorized

Mt. Pleasant Market?? Is this a good time to buy?

June 25, 2007 · 1 Comment

 The answer is as usual, it depends??  If you’re a first time home buyer looking to buy in Mt. Pleasant, and you have control over your timing, you might benefit by waiting.  Prices are more likely to drop than they are to go up in my opinion.  But we’ll definately know more in six months.  And you have little to lose by waiting. 

If you’re moving to the area, or for some reason, don’t have this kind of control, I think the timing is good for you.  You should be able to get a better deal than two years ago when multiple contracts were very frequent occurences.  Prices might go a little lower by the end of the year, but so far, they’re holding fairly strong.  The reason why I’m saying to first time home buyers that they might be better off waiting, is more because we’ll know more in six months than we do know…not that prices are definately going down.  So, if you are buying right now, feel good about your situation.  Charleston is still a hot destination.  Every year can’t be as hot as 2005, and 2006 was an excellent year as well.  So still, things are more returing to normal in Charleston.  Make sure you have a good agent representing you, and you should be able to BOTH find the best choices and get a good deal.  It’s possible prices will drop slightly before going back up.  In 2005, if your home in Mt. Pleasant was in a so-so location, or didn’t have great curb appeal, you could still get close to asking price, because buyers didn’t have very much from which to choose. 

Almost everyone makes some sort of trade-offs when buying a home.  If you’re buying now, you have great selection and you have a much better chance of getting all or most of your “nice-to-haves” satisfied versus 2005, when buyers may have been compromising “must haves” both because of the scant selection, and because they had to act so fast to avoid having to compete with another buyer. 

Judge for yourself. 

Sales and Inventory History

Monday, June 25, 2007
Category – Residential / Area: 41, 42

Month Year Monthly Sales Avg ListPrice Avg Sale Price % Diff Sell/list Avg DOM Curr Inventory Months Inventory
January 2004 123 $278,622 $272,218 97.70% 83.0 637 5.18
February 2004 134 $269,017 $265,136 98.56% 73.0 605 4.51
March 2004 202 $306,984 $301,695 98.28% 91.0 567 2.81
April 2004 174 $295,221 $289,983 98.23% 61.0 581 3.34
May 2004 201 $302,589 $299,346 98.93% 53.0 534 2.66
June 2004 246 $314,971 $312,444 99.20% 73.0 508 2.07
July 2004 236 $333,449 $328,154 98.41% 57.0 497 2.11
August 2004 187 $317,158 $314,685 99.22% 47.0 485 2.59
September 2004 157 $321,021 $315,561 98.30% 56.0 437 2.78
October 2004 156 $308,291 $305,020 98.94% 41.0 431 2.76
November 2004 158 $333,331 $326,958 98.09% 40.0 392 2.48
December 2004 194 $316,726 $312,637 98.71% 69.0 376 1.94
  
January 2005 169 $346,989 $338,094 97.44% 60.0 390 2.31
February 2005 187 $296,755 $293,329 98.85% 46.0 403 2.16
March 2005 214 $338,474 $333,567 98.55% 47.0 409 1.91
April 2005 240 $324,477 $320,567 98.79% 43.0 475 1.98
May 2005 241 $339,802 $335,452 98.72% 40.0 481 2.00
June 2005 324 $375,971 $371,017 98.68% 35.0 509 1.57
July 2005 257 $401,070 $395,249 98.55% 40.0 686 2.67
August 2005 279 $384,712 $378,539 98.40% 35.0 723 2.59
September 2005 228 $394,044 $386,245 98.02% 44.0 713 3.13
October 2005 220 $385,501 $379,188 98.36% 40.0 749 3.40
November 2005 247 $312,639 $308,014 98.52% 42.0 794 3.21
December 2005 322 $289,432 $284,302 98.23% 49.0 837 2.60
  
January 2006 198 $381,799 $371,678 97.35% 57.0 910 4.60
February 2006 146 $390,724 $385,140 98.57% 63.0 1172 8.03
March 2006 191 $434,460 $425,638 97.97% 67.0 1316 6.89
April 2006 170 $416,010 $406,886 97.81% 61.0 1382 8.13
May 2006 230 $412,126 $403,485 97.90% 58.0 1509 6.56
June 2006 193 $419,513 $409,645 97.65% 61.0 1557 8.07
July 2006 244 $416,162 $406,240 97.62% 68.0 1666 6.83
August 2006 204 $421,141 $410,018 97.36% 76.0 1666 8.17
September 2006 212 $411,933 $400,191 97.15% 77.0 1704 8.04
October 2006 172 $454,935 $433,791 95.35% 91.0 1756 10.21
November 2006 136 $415,439 $397,467 95.67% 93.0 1720 12.65
December 2006 157 $374,422 $357,116 95.38% 112.0 1588 10.11
  
January 2007 127 $438,884 $422,646 96.30% 98.0 1538 12.11
February 2007 119 $461,424 $442,102 95.81% 130.0 1572 13.21
March 2007 165 $496,216 $480,843 96.90% 126.0 1656 10.04
April 2007 155 $447,657 $431,443 96.38% 104.0 1716 11.07
May 2007 169 $394,783 $380,454 96.37% 96.0 1829 10.82

Categories: Charleston Neighborhoods · Make Your Move - Charleston Real Estate Problems, Tips

What is an “Agent”, and are real estate agents really agents?

June 22, 2007 · Leave a Comment

It depends on who you’re working with.   Most real estate sales training instructs students and new agents to carry a contract in the house and be ready to start filling it out on the kitchen counter.  Most real estate sales training says to try to show as few homes as possible…no more than seven and preferably less.  So, if it seems like the agents with whom you’re working seem a little old school, it’s both because they are, and because most real estate training given today is still pretty old school.  Ongoing real Estate sales training also minimizes the implications of dual agency.  And ongoing real estate sales training addresses why it’s a good time to buy. 

An “Agent” by definition and according to South Carolina’s buyers agency agreement is supposed to be someone that’s looking out for your best interests, putting your interests before not only the other parties, but theirs as well. 

I’m not sure how one could consider it in a buyer’s best interest to rush to fill out a contract, even in the hottest of markets.  I always recommend to my clients to consider their choices carefully.  To me, that means they need to sleep on it…or at a minimum, go have a cup of coffee before coming back to the office. 

And the only way that I could see showing less than about 15 homes is that if I had been out previewing about 30-40 homes before narrowing it down.  In my experience, people are a lot clearer about what they want after they’ve looked at 5-10 and see what some of the possibilities are.  So even if I did do the work to preveiw all those homes, I’d be concerned that I mistakenly eliminated one that would either be right, or highlight a feature the buyer wasn’t aware of that they’d really enjoy. 

Having said all that, I do believe it’s important to be efficient.  All the people with whom we work are busy….do you know anyone who isn’t.   And so our team members strive to make the best possible use of everyone’s time.  But that doesn’t mean taking shortcuts.  And it never means pressuring people.  If it’s time to decide, I find that people generally already know it without me telling them. 

Listen very carefully to what your “agent” says to you over the phone and in your first meeting.  If, after the first day, you feel like you’re being sold, you’re not working with an agent, you’re working with a salesperson…and there is a huge difference.  When push comes to shove, a salesperson will put themselves first, no matter what their agreement says.  An “agent” thinks long-term, wants you to be a raving fan after you’ve completed the process, and never pressures people.  Not only do they desire to protect you every step of the way, they are capable of doing so.  They may or may not be the most “likeable” personality you come across, and may even run across the grain from time to time, because they don’t ever want you to be surprised because they weren’t up front with you.  Or because they allowed you to believe something that wasn’t true. 

One last note, since we’re on this subject.  It requires no “training” to become a real estate agent in South Carolina, you don’t have to actually know how to do anything.  You have to recieve about 60 hours of instruction, none of which is training.  If you want to become a cosmetologist, you recieve training so you can cut and dye hair and do other things cosmetologists do.  You have to perform and demonstrate proficiency in many techniques.  You see, the haircut industry couldn’t survive if they didn’t they didn’t have a labor force on which to draw that they knew could cut hair. 

In real estate, the real estate commission allows salespeople to represent the public as agents.  There is no “agent” license.  So be careful out there. 

Categories: Make Your Move - Charleston Real Estate Problems, Tips

“They Don’t Build Them Like They Used To” Oh Really?

June 22, 2007 · Leave a Comment

Does anyone remember Hurricane Andrew?  http://en.wikipedia.org/wiki/Hurricane_Andrew Provides a concise summary.  In 1992, I was a territory manager for Senco Products, a major manufacturer of automatic nailing and stapling products.  The reason I bring up Hurrican Andrew, is that prior to this hurricane, the building codes for nail specifications, and other fasteners to address wind uplift forces went largely ignored. 

 This past week, I attended a pre-drywall inspection, and a final inspection for two different brand new homes built by Centex.  For the record, there are two reasons why you see so many positive reports on my blog about Centex.  One, the inspections I’ve intended, of both brand new, and used homes; and positive reports from my clients.  And two, their superior JD Power ratings.  I could actually make a lot more money selling other brands who offer huge selling bonuses.  D. R. Horton for one offers DOUBLE commissions of 6% for selling their homes.  Kind of makes you wonder about a few things, but that’s not the subject of this article.  Beazer has a volume plan where you can work your way up to 4 1/2%.  Centex offers 3% and no extra bonuses no matter how many you sell…for the record. 

 Anyway, since Andrew, inspectors pay much more attention to the types of nails, nailing patterns, and the connectors used to fasten the home down to the foundation.  After Andrew, a lot of people caught hell, and building inspectors topped the list.  Even though the newer codes were virtually indiscernable by anyone but an engineer, especially with regard to “hurricane ties”  If you look at a new home built today, you’ll see that from the roof trusses, all the down to the sill plates, are fastened together by some type of metal strap.  Short of  tornado, or a direct hit by a cat 5 hurricane, they aren’t going anywhere.  

 That doesn’t mean that new home builders are perfect.  The people that oversee the construction have too many homes to supervise, typically around 20, assigned to them.  So you need to hire your own inspector, and negotiate with the builder so that things get completed in a reasonable time frame.  I am biased of course, but I highly recommend having a real estate agent on your side of the table to help out as well.  Consider it free insurance.  Just make sure your agent is actually your agent, and not a salesperson pretending to be an agent. 

On the finished home, most of the drywall work was great.  Two joints in the living room needed to be re-floated, and two other joints needed to be cut out and reworked.  Must have been a bad day or the end of the day for the dry waller, because the rest of the house looked great. 

On the pre-drywall inspection, the walk-out door was on the wrong side of the garage…whoops.  That will be fixed.  And there was about a four inch piece of OSB near the top of the roof line with a couple of pieces busted out.  Apparently, the code doesn’t specify the width of the last piece near the end of the roof sheating.  I’m not a code expert…so I can’t really evaluate that from an expert standpoint.  Seemed pretty hokey to me.  But those were the only things we could find.  Myself, a certified inspector and the buyer. 

I learned this week that the site supervisors are incented based on thier J. D. Power Survey results.  If they don’t average a 9.3 or better, they miss out on a significant bonus.  Sounds like a good plan.  They stay in touch with the customers and do everything they can to make them happy.  

I’ve heard people say that because of the way they grow trees now, that older lumber is more structurally sound and that is probably true.  It remains to be seen how well the vinyl siding will hold up after 30 years in our sun and rain.  They were using Cedar in the 80’s, and without flawless maintenance, they need to be resided because it rots in the humidity.  Brick is an extra $20,000, a great investment.  And cement plank siding is great, my favorite actually.  It’s not inexpensive, almost as much as brick, but it looks great, and is proven to last.  It does require caulking to prevent leaking. 

In Charleston, I feel great about recommending Centex, Brentwood, Harbor, and Weiland built homes.  If you need help comparing builders and communities, please feel free to contact me.  843-991-5184. 

Categories: Charleston Neighborhoods · Make Your Move - Charleston Real Estate Problems, Tips

Park Circle for Under $200,000

June 22, 2007 · 1 Comment

Here’s the long-anticipated Park Circle Post.   “I want a home with some character where I can walk to parks, restaurants and shopping.” “Can you find me an investment property that will experience better than average appreciation?” Both of these are available in Park Circle.  Those familiar with the Charleston Market know this, but I wanted to go explore for myself.  I don’t get paid to be a reporter, but being in my third year in real estate, and having had some success of my own, I’ll be looking to gain some tax advantages and use my real estate knowledge to my own advantage.   So, I had just a couple of hours to learn as much as I could.  Investors typically want something that will provide positive cash flow, which in Charleston means that it needs to be priced around $160k and rent for $975/mo.  Here is what I learned. There are several sections in Park Circle, some of which are very nice, and others, not so much.  The homes in areas not so nice didn’t seem to priced that much lower…it’s as if they thought the “Park Circle” brand name would carry them. The homes currently in the MLS for the most part, are leftovers.  What do I mean by leftovers?  There is something clearly lacking that explains why no one has bought it yet.  Things that can’t be changed, or not very easily.  For example, one home, which was on a nice street by the way, had four bedrooms, but two of them where in an area over the garage where you had to walk through one bedroom to get to the other two, and through the second bedroom to get to the third.   In another case, the home had been added onto in such a way that it was just way overpriced.  People tend to search around for advice and find someone that will tell them what they want to hear.  So they find someone that says, “Oh, your home is 1400 square feet, we can easily get you $190,000.”  What they don’t say, is that six months later, they’ll be looking for another agent, because they picked the agent based on price, instead of picking the agent based on their integrity, and discussing price later.  A much wiser approach if you think about it. A third case, the home had been completely rehabbed, and was right across the street from a park.  They were asking $179,000 for an 803 square foot 2 bedroom one bath.  A little ambitious possibly, the owners are obviously willing to wait to get top dollar.  Someone will eventually fall in love with it, even though some of the improvements were done, “on the cheap”.   Some homes I didn’t even bother going into.  I wouldn’t want my sister or mother living there, and will let someone more adventurous take them on.  There is money to be made in blighted neighborhoods, but not by me.  At least not at this point.   So, what’s the answer?  Having driven by dozens of houses, and going inside a few in just a couple of hours,  I had a theory.  Maybe the best homes, the ones that are priced realistically and are good opportunities either for families to live, or investors to make a fair profit are sold very quickly. Sure enough, I checked the MLS, and properties in Park Circle under $200,000 were more typically under contract in under a week, and in many cases were sold before they were listed.  You have two scenarios.  First, there are about 100 (of the five thousand) real estate agents in the Charleston area that make six figure incomes, and need tax shelters.  They have access to the MLS real time, and are poised to jump on opportunities.  I’m not quite there yet, but well on the way.  The second scenario is that experienced investors who are direct clients of real estate agents that are too busy to do the down and dirty work of searching for properties.  They have agents working for them, and a plan to strike quickly when opportunities arise.   If you’re serious about finding a high demand property, you need to be prepared, and you need to have a plan to strike quickly That plan needs to have these critical components: You need an agent you can trust implicitly to help you make good decisions, that will never “sell” you.You need to be prepared to view the property the day it hits the MLS.You need to be prepared financially with bank information, or a pre-approval letter.  You need to be prepared to deliver a solid offer, that makes it easy for the seller to say yes…preferably “as-is” with a free look period.   Once you have a “ratified” contract, I suggest having the property inspected immediately, so you can clear the inspection contingency, or obtain a release from the contract.  Basically, you just want to know that the property is structurally sound, and whether or not costly repairs will be needed.   I hope this helps you.  Some of the things you learned here can apply to any home purchase.  If something online seems too good to be true, it probably is.  Investor/agents are always on the lookout for the best deals, and they area gone in days.   Your agent needs to be up to speed on technology to take care of you properly.  They also need to know the market in which you’re looking.  They need to know why properties on one street tend to be worth more than those on another and why.  The Move2Charleston Team has agents assigned to different areas so you always get someone that knows the area in which you’re looking.  I will help you sort through the different parts of town with the pros and cons of each and assign a local expert to you. 

Categories: Charleston Neighborhoods · Having Fun · Make Your Move - Charleston Real Estate Problems, Tips

Stay Tuned for “What Does $200,000 Buy You in Park Circle”

June 19, 2007 · 1 Comment

A lot of people want a home in a downtown area where they can walk to shopping, restaurants etc., and downtown Charleston is way out of reach, but for the very few.  Park Circle is the up and coming area in Charleston, they call it “transitional”.  I’ll be going out this week to preview homes and reporting back to you on what I find.  You should know that there are a lot more homes over $200,000 than under.  So if you’re looking for that ideal investment property for $160,000 that will rent for $1100/month and cash flow, it might be too late.  Let’s see what we find out. 

Categories: Charleston Neighborhoods · Make Your Move - Charleston Real Estate Problems, Tips

Did I Forget to Tell You How Great it is to Have Year-Round Good Weather?

June 19, 2007 · Leave a Comment

I was hanging out with a friend of mine today, and we were talking about how cool it is knocking around Charleston in Golf Shirts, Khaki’s, and no socks.  I’m not a no-socks guy, it feels clammy to me, but many are.  I do enjoy flip flops, but that’s not exactly appropriate work attire.  My friend Randy and I are both salespeople, so we’re out and about quite a bit.  It’s great not having to worry about bundling up in the winter, shoveling snow, and having extra gear in the car like boots, shovels, etc.  Most of the time, it’s just downright pleasant.  Yes, the Summers are hot and long, but it’s not so bad with khakis and a short sleeve shirt.  And it’s not like the Summers aren’t brutal up North.  We do have seasons here, the leaves fall off the trees, but we always have lots of evergreens as well as Live Oak trees so we don’t have that God-Awful Greyness in the winter. 

And for you golfers, imagine NOT having to fly down to Myrtle Beach with your buddies to play a few rounds of golf.  You can still having your getaway, but it’s a two hour drive to Myrtle Beach, Hilton Head, and Savannah.  You can all climb in the car and go. 

I do like rubbing it in once in awhile. 

Categories: Having Fun

Could the new “West Ashley Downtown” become the next Daniel Island?

June 4, 2007 · 1 Comment

Keep your eye on the new shopping and living space near the new West Ashley Wal Mart, and Centex’s Carolina Bay Development.  The product isn’t finished yet, but if you’re kicking yourself for missing out on the Daniel Island boom, this might be your chance to score big.  July 6, 2006, the Post and Courier featured “West Ashley’s Downtown”.  The planning doesn’t seem as controlled as Daniel Island, so I’ll be surprised if they achieve the same planned feel and result, but it will be a huge improvement over the typical sprawl we’re seeing in South Carolina. 

One of the biggest reasons I think people pay the premium for Mt. Pleasant and Daniel Island is the better planning.  Especially Daniel Island and I’on.  Some people object to the artificial downtown feel, saying they feel like they’re in Disney World.  But, presentation and aesthetics are important to people, and something gets lost when you have to drive by unsightly commercial structures, strip malls, and even mobile homes, on your drive home.  I get emails all the time from people who want to spend less than $400,000, and want to be able to walk to shopping and entertainment.  Good luck finding that in downtown Charleston, unless you can cram into 500 sqft, or don’t mind bullets wizzing past you from time to time.  You can’t find much of anything in Downtown Summerville for under $400k, other than maybe a tiny cottage ridden with termites.  My most recent search downtown, a couple was looking for a nice townhome with parking.  They wanted to stay around $600k, and what we found was just pretty dissappointing.  We were able to find one option, finally, and only one. 

 So, if you want to be able to walk to dining and entertainment.  Or stroll down to the coffee shop to read your paper, Carolina Bay could be just the thing.  There are townhomes in the area as well if that’s your cup of tea.  But keep your eye on this gem.  I think the end product is going to work.  Centex’s Essex series starts at $330k for a 3 bed 2.5 bath home with 1537 square feet. That includes a standard one car detached garage.  The two car garage is available but it is an upgrade.    They also offer “drive-under” floor plans for those of you that prefer elevated construction, and of course they have there own pricing.  The “Plantation Series” are all Carolina Style Homes featuring detached garages, various porches, and Charleston Single Style homes.  If you’re looking for something where you’re going to be assured of good resale, curb appeal is everything, and these homes pop from the time you drive up. 

In case you’re wondering, I have no agenda to get you to buy Centex, other than I like it when things are easy, because easy is good.  I’ve worked with other builders, and heard many stories where working with the builder was un-imaginably difficult.  I’ve read hundreds of inspection reports on homes built by a variety of builders, and Centex homes have fewer issues than most.  You can read my other articles on new construction in the archives.  I’m working on one Centex home right now, and the builder contact is doing a remarkable job. 

I’m giving away all my good stuff here and making it easier for you to make a choice, so please consider hiring me when it comes time to making a purchase.  Site agents are usually great, but if you want to make the best decisions, then you need to compare all the different options out there.  I can help you do that. 

Categories: Charleston Neighborhoods · Make Your Move - Charleston Real Estate Problems, Tips