Showings are at an 18-month high in Mt. Pleasant and also in Dorchester County (Summerville), according to data compiled by Centralized Showing Service, which records all showings booked for REALTORS via the MLS. Charleston (West Ashley) and areas of Berkeley County also exhibit a similar patter (see graphs). Because showings are an indicator of the level of buyer interest in the market, it can be used as a predictor for future sales, which will normally show up 2-3 months later.
Many factors may be contributing to this uptick in showings: Families are back from summer holidays, interest rates are still low, prices have continued to drop, and the $8,000 First-time Home Buyers' Tax Credit is encouraging renters to get in the game!

This is all good news that show the resiliency of our Charleston Area Market. I have always argued that Charleston is blessed because a) It is on the coast (almost everyobdy loves the beach); b) It has great weather (no snow); and c) Its economy is dependent on at least four different industries: Tourism & hospitality, logistics (the Port of Charleston), education (MUSC, College of Charleston, Charleston Southern University) and the military (Charleston Air Force Base, SPAWAR and the Naval Weapons Station). So our economy should rebound quicker than a similar sized single-industry town...

Read More Articles Like This One at http://www.BuyHomesInCharleston.com/blog.html

This guide for first-time home buyers is intended to provide general information to help buyers be aware of the buying process, and to dispel any myths about buying a home. Please discuss your particular situation with the appropriate professionals before making any decisions.

So, You want to Buy a Home?
Since buying a home is a BIG financial commitment, many first-home buyers (and some repeat buyers) feel very intimidated by the whole process, which, in itself is rather uncomplicated, but it involves a lot of small steps, that, if not done right, can produce expensive mistakes.

In my 12 years in Real Estate I have dealt with many types of buyers and different scenarios, so I have developed a "method" to reduce stress and ensure success. Here's a brief synopsis of my recommended "Buying Process".

STEP 1 - Hire a REALTOR to Represent You
In SC, buyers can hire their own Buyer's Agent, normally at no cost to them. Once you hire a REALTOR as your Buyer's Agent, this person has a FIDUCIARY responsibility to represent you and protect your best interests. Buying a home is a "joint project" between you and your REALTOR. Make sure you establish a mutually agreeable communication pattern and that you have clear expectations of each other's responsibilities.

STEP 2 - Show Me the Money
Whether you are single and about to buy a home on your own, or (even more so) a couple with kids, money is always one of the crucial factors to explore upfront. Ask yourself these questions:

What's the total monthly payment that you would feel comfortable with, without stretching your finances or cramping your style?
Do you have an "emergency fund" in case there's a hiccup (loss of income, emergency, etc.)?
How much money do you have to put down toward the purchase?
Now, it's time to get PRE-APPROVED. Contact a local lender and they will be able to walk you through an application. The lending officer will review your INCOME, EXPENSES, ASSETS and LIABILITIES, plus your CREDIT SCORE. Based on a formula that takes into consideration several factors, the lender will tell you HOW MUCH is the maximum purchase price and loan amount you can have, the amount you must have ready for your down payment and your estimated MONTHLY PAYMENT.

Ask for a written PRE-APPROVAL letter and how long it is valid for. Keep in mind that (especially in this market) such a letter is often required by Sellers, and will give more weight to any offer you make.

STEP 3 - Define Your Needs and Wants
Some buyers do not have a clear picture of what they want, and in a "buyer's market", where there are literally thousands of available homes, they can get confused and frustrated quite easily. I recommend that you write down your needs and wants, and rank them in priority, for example:

MY/OUR BUYING CRITERIA

NEED (must have): Min. 3-bedrooms, "excellent" rated schools, 2,000 sq. ft., under $200,000, within a 45-minute drive to/from work.
WANT (would like to have): Community pool, bonus (FROG) room, 2-car garage.
NOTE: If there is more than one decision maker, make sure you all agree on at least the NEEDS column. It is important that you share these criteria and priorities with your REALTOR, to help him/her give you better selection of properties and provide better advice.

Next: Searching for a home and negotiating a contract....

SHOWINGS & PETS
Most of us REALTORS® are animal lovers and have pets of our own, but we also share many stories about showing homes where our clients went into a sneezing fit, we got bitten by a cantankerous furry creature, or opened the front door only to helplessly see a cute kitty scoot toward the nearest busy street.

It is essential to take pets into consideration if you put your house on the market. Make sure you work out the showing arrangements/instructions carefully with your REALTOR®, since it is important for showing agents to know what to expect inside your home. Buyers could potentially be allergic or scared of cats or dogs (especially if they bring children along).

Although most pets are harmless, they may hinder the buyers' experience and put a "negative aura" for your home in their minds. It is difficult to get a buyer excited about your home if he or she is sneezing continuously or unwilling to cross the threshold because your dog is barking away intruders.

One of my fellow agents has this great listing in Mount Pleasant, popular price range, great location, priced right. Yet she has had the hardest time selling it because the owner refuses to clean up after his cat, and the house smells terrible! This home should have sold months ago, if this issue had been handled appropriately...

If your agent knows there might be a problem, you may wish to walk or cage your dog, vacuum the cat hairballs or do whatever is necessary to make sure that the showing goes smoothly.

Is the new $8K tax credit useful? Will it do THE JOB it was designed to do?

I'd like to find out what people think...is this federal program a good one, or is it just providing "lip service" to people concerned about the housing market?

Here's an article that appeared on CNN that describes the tax credit:

http://money.cnn.com/2009/02/13/real_estate/homebuyer_tax_credit_finalized/index.htm

What do you think?

Increased showing activity in Mt Pleasant will lead to more sales in the next two months...

ARE YOU BEHIND IN YOUR MORTGAGE PAYMENTS?
DO YOU NEED TO SELL YOUR HOME?
DO YOU OWE THE BANK MORE THAN YOU CAN GET FOR YOUR HOME?

What are your OPTIONS?

Many people are not aware that they have a few options to explore when they are facing these situations. Some people just give up and abandon the house for the bank to take it over. Before you do this, it is important to explore other options that may affect your credit and personal finances less than foreclosure.

The first thing you have to find out is who owns your loan note (it may be different from the lender who sold you the loan and/or different from the company who services the loan). Once you find out who is holding your loan, you may want to call their LOSS MITIGATION DEPARTMENT, which specializes in dealing with these matters.

Notes: I am assuming that when you took the loan you were properly informed of the conditions, and that your lender performed all required disclosures as required by the Truth In Lending Act (if you feel you were not informed properly, or believe there was fraud involved in your loan, you have legal recourses you can pursue). Also, some of these options may have tax implications for you. If the lender accepts a short sale, the amount of principal they “forgive” may be counted as income for your tax return. It is essential to consult with your CPA and attorney before taking final action.

Option 1: LOAN FORBEARANCE Depending on your circumstances, a “temporary fix” option you might wish to consider as a way to prevent foreclosure is mortgage forbearance. This option is commonly used for temporary financial hardship situations such as short periods of unemployment or poor health. Mortgage forbearance enables you to temporarily stop making your mortgage payments. However, interest on your loan continues to accumulate and is added to the remaining principal balance of the loan. You are generally also asked to sign a forbearance agreement that states when the lender will require you to pay the amount you owe. Once the forbearance period comes to an end, you are once again obliged to make full payments on your home loan.

Option 2: LOAN MODIFICATION If your mortgage interest has readjusted upward (as in an ARM) and you cannot afford the new payment, or you are having trouble paying your mortgage and you are in a high-interest loan and cannot refinance, your lender may consider changing the terms of your loan to help you. Some of the factors that your lender will consider are: Nature of the hardship that is causing your mortgage payment problems; the amount of equity you have in the property; your ability to pay the mortgage; the amount owed on the mortgage; and mainly, what is financially better for them – whether to foreclose or pursue a loan workout with you or modify your loan.

Option 3: DEED EN LIEU OF FORECLOSURE This option basically provides a “free out of jail card” for the homeowner, who agrees to give the property back to the lender if the lender agrees to forgive the debt that was secured with the real estate. Deed-en-lieu-of-foreclosure is only approved by lenders in certain hardship circumstances (conditions vary according to each lender). Both sides have to enter the transaction voluntarily and in good faith. The property needs to be transferred at a fair market value.

Option 4: SHORT SALE In a declining real estate market, it is quite common for homeowners to owe more on their home than what they can net from sale at a “fair market price”, especially if they haven’t lived long in their home. In many cases you can still sell your home, provided that the lender(s) and other lienholders approve a short sale, where they are paid less than they are owed. Any other liens affecting the property (including mechanics’ liens, tax liens and any judgments against you, the owner) will have to be cleared to be able to “short-sell” the property.

Option 5: RE-FINANCE If you are in a situation where your loan is at a high interest rate, you may wish to consider re-financing (with the same or with a different lender) to lower your monthly payments. However, in the last two years the guidelines for re-financing have changed, making it impossible for some homeowners to re-finance their mortgage. The main recent changes affecting your ability to re-finance are: Declining home values; reduced loan-to-value and debt-to-income ratios; your payment capability and your credit score.

Option 6: FORECLOSURE Foreclosure is a legal process whereby the lender(s) exercise their right to take possession of your home and kick you out for not honoring your commitment to pay the loan(s). This is a slow process (in SC it can take from 6+ months) and it is expensive for the lender. It also affects the homeowner’s credit substantially and for a long period of time. If you fail to pay your loan on time, you will first receive written notices that you are in default and warning you to pay or face foreclosure. After a few months (depending on the lender), they will issue a notice of their intention to foreclose. The case will be handed over to an attorney, who will file suit to foreclose and will file a lis pendens notice at the County Courthouse. Once the court rules the property will be sold to the highest bidder at public auction on the courthouse steps. If you are still living in the house, the new owner will file a motion to evict you.

Option 7: BANKRUPTCY In some particular cases, the only option that may make sense to you will be to file bankruptcy. The latest changes to the bankruptcy law make it a bit harder for some to file bankruptcy. Some filers with higher incomes won't be allowed to use Chapter 7, but will instead have to repay some of their debt under Chapter 13. You will have to get credit counseling before you can file a bankruptcy case. And, because the law imposes new requirements on lawyers, it may be tougher to find a bankruptcy attorney.

Alan Donald is a bilingual REALTOR® with Keller Williams Realty in Charleston, SC.You can ask him questions by sending him an email to adonald@kwcharleston.com or by visiting his website at www.BuyHomesInCharleston.com .

TO "LOCK" OR TO "FLOAT"?

It is very important for home buyers or for those who want to re-finance to be aware that in these volatile financial markets we are living in, interest rates on mortgages can fluctuate substantially in a matter of hours! I have heard many stories from mortgage lenders about how they were able to lock a fantastic interest rate for a loan using a 2-3 hour "window of opportunity" that disappeared afterward, or others that missed out because they floated the loan (to "float" means to let the interest rate fluctuate with the market). Understanding how "locking-in" a rate works may help you evaluate your options and could result in thousands of dollars in savings!

So, what is a "lock"? A lock is a GUARANTEE from a lender that if you close your loan within a stipulated time (usually 30 days), the note on your loan (i.e. the nominal interest rate) will be set at a specific interest rate.

When you ask a lender for a quote (also called a "Good Faith Estimate" or GFE), you can ask how long the rate is good for. Bear in mind that until you lock the interest rate, it can (and probably will) change. If you think you need more time to close the transaction, ask the lender for an adjusted rate quote. If you are afraid that interest rates may rise, lock your rate now (rate locks are recommended when interest rates are on the rise, to avoid ending up with higher monthly payment than anticipated). Floating the loan in a volatile market is a gamble - you may win if rates drop, but you may also lose if they go up.

What many people don't know is that long-term mortgage rates don't depend on the inter-bank rates set by the Federal Reserve Bank. This rate normally affects only short-term lending (such as credit cards, car loans, home equity lines, etc.). Long-term rates depend on the behavior of the financial (stock & bond) markets. Thus, if bonds are in high demand, mortgage rates drop.

Professional mortgage representatives are constantly checking the financial markets and related news releases to be able to predict future movements in interest rates. Ask your lender to keep an eye out for a favorable rate to lock in your loan! This is one of the reasons why it is very important to pick a very sharp and experienced mortgage representative (if you ever have the need for one, I can recommend several...)