Charleston SC Real Estate Affordability Out of Reach For MostAs a real estate broker in Charleston SC it is my job to track real estate sales trends so I can fully understand what the market is doing and thus educate my clients to make an informed decision about their transactions. Knowing how the market and economic conditions effect property sales is a key factor to being a great agent, and more importantly how affordable homes are to the prospective buyers. After the real estate crash that started in 2008 which led to “The Great Recession”, things just haven’t been the same. Sure the economy has rebounded considerably against what it was, jobs have come back somewhat, and real estate prices have improved but that’s all on the surface. Real estate sales is the largest indicator in America as to the health of the economy. According to Realtor.org: In spite of higher prices, housing affordability is down only slightly from a year ago as lower mortgage rates and higher incomes almost offset higher home prices. Housing affordability declined slightly (2.6 percent), from a year ago in November in spite of a notable increase in prices. The median sales price for a single family home sold in November in the US was $221,600, up 6.6 percent from a year ago. This pushed the affordability index from 171.9 to 167.4. Market Stats – Price Averages However what you might not hear a lot about is the “affordability index”. The Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national and regional levels based on the most recent price and income data. The metropolitan index shows the existing single-family home affordability index over the past three years, by metropolitan area (in my instance Charleston SC). Median price of Existing Single-Family Home Sales: comes from the existing home sales monthly survey conducted by the National Association of Realtors®. To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment. For example, a composite HAI of 120.0 means a family earning the median family income has 120% of the income necessary to qualify for a conventional loan covering 80 percent of a median-priced existing single-family home. An increase in the HAI, then, shows that this family is more able to afford the median priced home. Blah Blah Blah – I know all this probably sounds like mumbo jumbo to most people. The simplest way to understand this is the average income in your area (defined by gathered data by expert analysts) of a family / divided by average (median) price of a house in any given area. (Assuming 20% down on a purchase) According to 2010 US Census Bureau data Charleston’s median family income is $61,525 which is higher than the United States average. Median home price for a single family house in the Charleston SC tri-county area is just over $251,000. So where am I going with all this you ask? My real estate websites rank among some of the best in the entire state of S.C. for real estate searches and I track the analytical data. What I have seen is there is A LOT, and I mean A LOT of interest in living here in the Charleston area. However, most can’t afford to live here. I see thousands of people per week search homes in the area, I talk to a few prospects a week and come to realize living here is out of the grasp for most. Especially for those who dream of being anywhere “near” water or the beach. Fortune magazine just wrote an article and said Trulia Housing Economist Ralph McLaughlin ranked Charleston SC #2 for best most interesting housing markets in the country. The beginning of the article notes the “first” top ten which include larger metropolitan cities like San Diego, Charlotte NC, and New Orleans, but then goes on to explain how Charleston SC and Grand Rapids Michigan end up also making the list: “This underscores the growing problem of affordability in many cities where jobs are plentiful. At a certain point the affordability problem grows so bad that people are forced to leave the cities with the best job prospects and move to a place where they can afford to buy a home”. He is referencing most can’t afford to live in cities like San Diego, so they choose cities like Charleston SC instead, but it’s my contention that most can’t afford here either, and I have proof because I see it all the time. The most viewed pages on my sites are regularly homes under $100,000, and the next most view pages is homes $200k – $300k. It’s not like we don’t have homes here in that price range, but what you’ll get for your money is not what people want to live in. In a recent article by The Post & Courier about this topic they reference a retail store on King St that struggled to find employees to work there simply because of parking costs. There are even instances where restaurants downtown are being forced to close because they can’t find servers to work, because what’s called “work force” staff can’t afford to live downtown. This is becoming a huge issue throughout downtown and Mount Pleasant, “work force” employees can’t find affordable housing on the income they make so many businesses struggle finding employees. Businesses known for hiring low-skill workers like retail, restaurants, cleaning & maintenance, etc have to come in from over 40 mins to hour drive to work one way. Developers aren’t helping themselves, because as more and more hotels are built to cash in on the popularity of Charleston’s tourism prosperity this uses up available “dirt” real estate that could otherwise be developed for housing. Thus, driving up the cost of long term housing such as apartments, condos, housing developments. Then you’ll have those who think they want a second home, and thus I get thousands of visitors looking at homes on Kiawah Island, because they have done a week visit to the famed golf resort, but they too fall off. In my opinion it’s because they too realize it’s out of the affordability range for even those who can afford a vacation home. Small one bedroom condos on the beach communities go from $250k – $350+ for beachfront. 24/7 Wall Street – Of the eight metropolitan areas in South Carolina, the Charleston area is the most expensive. The average cost of goods and services is 5.5% higher in Charleston than it is across the state. Renters in particular pay significantly more in South Carolina’s most expensive city than they do across the state. While the average renter in Charleston paid 94.6% of the average renter’s expenses across the country, the average renter in South Carolina paid just 76.3% of what the average renter paid nationwide. Rentals are gauged in terms of “doors”, and bedrooms. Based on per capita income Mount Pleasant SC is #1 the most expensive in the state. The average cost for a “bedroom” in Mt Pleasant is almost $700, whereas in Columbia SC you can rent an entire 2 or 3 bedroom apartment for $700. In short, Charleston SC isn’t as affordable as one might think because they lump us into the misconceived perception of “South Carolina”, when in fact Charleston is far from being like anywhere in the state.
Charleston SC Floods & National Flood Insurance InformationFacts and Helpful Information about flooding in Charleston SC & Coastal South Carolina. As if the prognosis for flood insurance wasn’t bad enough in coastal areas, and obtaining flood insurance wasn’t already a concern for residents not only in Charleston but around the United States as congress tries to figure out how to keep FEMA & flood insurance solvent. One important thing you should know, there is NO “shopping around” for flood insurance. FEMA regulates flood insurance and its costs. Agents simply are the distributors of the policies. However, your insurance could vary in cost IF and only if the agent providing you the flood insurance quote makes a mistake in inputting the information therefore, affecting the rating adversely. FEMA FLOOD ZONE MAP <span data-mce-type=bookmark style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class=mce_SELRES_start></span> MAP CHANGES <span data-mce-type=bookmark style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class=mce_SELRES_start></span><span data-mce-type=bookmark style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class=mce_SELRES_start></span> Rate changes are likely to affect owners of subsidized pre-FIRM (FLOOD INSURANCE RATE MAP) non-primary residences, business properties, and properties that have experienced sever repetitive flood losses. Owners of pre-FIRM condos and multi-family units will also see their rates gradually increase. Owners of pre-FIRM primary residences will retain their subsidies unless the policy lapses; it suffers a severe, repeated loss’ or it’s sold to a new owner which is retro active to July 6th, 2012 when the legislation was enacted. Flood insurance is available through the NFIP. It may be purchased through licensed property and casualty insurance agents or through many private insurance companies. Typically, there’s a 30-day waiting period from date of purchase before a policy goes into effect. There are eligibility restrictions to qualify for National Flood Insurance. Please contact the NFIP with eligibility questions at (800) 427-4661 or visit FEMA website. As FEMA improves its mapping technology and draws more accurate flood maps, some homes may now be located in a flood zone, or higher risk area, where the flood insurance is more expensive. Also, some insurance agents may adjust rates to correct previous mistakes made about the home’s features when they are re-evaluating a policy at renewal. In Charleston County, FEMA said all homes built before April 1971 pre-date the first flood map. In Dorchester County, the date is January 1982, and in Berkeley County it’s September 1983. Homes built after flood maps were adopted will not see as much impact from the NFIP changes, but they could be affected by the new flood maps FEMA is developing for the entire United States, according to the agency. When parts of the new law kicked in, flood policies increased an average of 10 percent. Under the changes, subsidies are being removed from second homes, rentals and businesses, as well as dwellings that have had repeated flood losses. Homes sold in pre-FIRM areas are automatically required to have the much more expensive insurance that reflects the “true risk” of flooding. Check For Your Map A Flood Insurance Rate Map (FIRM), Flood Boundary and Floodway Map (FBFM), and Flood Hazard Boundary Map (FHBM) are all flood maps that have been produced by FEMA. The FIRM is the most common map and most communities have this type of map. At a minimum, flood maps show flood risk zones and their boundaries, and may also show flood ways and Base Flood Elevations (BFEs). The FBFM is a version of a flood map that shows only the flood way and flood boundaries. The FBFM is no longer produced; current FIRMs include all of this information. The FHBM is an older version of a flood map and is based on approximate data. FLOOD ZONES & EXPLANATIONS Flood hazard areas identified on the Flood Insurance Rate Map are identified as a Special Flood Hazard Area (SFHA). SFHA are defined as the area that will be inundated by the flood event having a 1-percent chance of being equaled or exceeded in any given year. The 1-percent annual chance flood is also referred to as the base flood or 100-year flood. SFHAs are labeled as Zone A, Zone AO, Zone AH, Zones A1-A30, Zone AE, Zone A99, Zone AR, Zone AR/AE, Zone AR/AO, Zone AR/A1-A30, Zone AR/A, Zone V, Zone VE, and Zones V1-V30. Moderate flood hazard areas, labeled Zone B or Zone X (shaded) are also shown on the FIRM, and are the areas between the limits of the base flood and the 0.2-percent-annual-chance (or 500-year) flood. The areas of minimal flood hazard, which are the areas outside the SFHA and higher than the elevation of the 0.2-percent-annual-chance flood, are labeled Zone C or Zone X (unshaded). Definitions of FEMA Flood Zone Designations : Charleston SC Flood ZonesZONEDESCRIPTIONB, C, and XAreas outside the 1-percent annual chance floodplain, areas of 1% annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1% annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1% annual chance flood by levees. No Base Flood Elevations or depths are shown within this zone. Insurance purchase is NOT required in these zones.ZONEDESCRIPTIONAAreas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. Because detailed analyses are not performed for such areas; no depths or base flood elevations are shown within these zones.AE, A1-A30Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. In most instances, base flood elevations derived from detailed analyses are shown at selected intervals within these zones.AHAreas with a 1% annual chance of shallow flooding, usually in the form of a pond, with an average depth ranging from 1 to 3 feet. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones.AORiver or stream flood hazard areas, and areas with a 1% or greater chance of shallow flooding each year, usually in the form of sheet flow, with an average depth ranging from 1 to 3 feet. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Average flood depths derived from detailed analyses are shown within these zones.ARAreas with a temporarily increased flood risk due to the building or restoration of a flood control system (such as a levee or a dam). Mandatory flood insurance purchase requirements will apply, but rates will not exceed the rates for unnumbered A zones if the structure is built or restored in compliance with Zone AR floodplain management regulations.A99Areas with a 1% annual chance of flooding that will be protected by a Federal flood control system where construction has reached specified legal requirements. No depths or base flood elevations are shown within these zones. High Risk – Coastal AreasIn communities that participate in the NFIP, mandatory flood insurance purchase requirements apply to all of these zones:ZONEDESCRIPTIONVCoastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. No base flood elevations are shown within these zones.VE, V1 – 30Coastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones. MOST RECENT FLOOD INSURANCE RATE CHANGES <span data-mce-type=bookmark style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class=mce_SELRES_start></span> DOWNTOWN CHARLESTON SC FLOOD PRONE STREETS FLOOD INSURANCE INFORMATION VIDEOView in FEMA Multimedia Library ABOUT SOUTH CAROLINA FLOOD HELP
Real Truth About Online Real Estate ListingsWe’ve all seen the Zillow & Realtor.com commercials with the couple home searching on their tablet or pc looking at maps and school data all to make you feel warm and fuzzy. However, how accurate is that data and how truthful are they being? I hate to be the barer of bad news, but it’s all just smoke and mirrors. Really, trust me. I know because I am not only a full time real estate broker, but also a full time web marketing and development consultant. I did an article last year about how truly inaccurate Zillow really is and most aggregators of RETs IDX data more times than not are inaccurate at best.Recently, I have gotten even more annoyed with their more current campaigns claiming to have the “most up to date” listings. Their commercials are always bragging about how their listings are pulled directly from the MLS every 15 mins some every 30 mins, so it’s the “most accurate” and “up to date” listings. All the while trying to convince the consumer user to use their sites vs others because others just aren’t as accurate and somehow have stale listings. This couldn’t be further from the truth, and is borderline false. Let me explain. This website you’re looking at for example is literally as if you’re looking at my local MLS board’s property listings and just as if I were to log into my MLS platform from the real estate board. As you look through homes in my website here, search around with queries, you are looking at the most current properties on my local Charleston South Carolina MLS. Those properties are coming into my websites via an IDX (Internet Data eXchange) feed directly from our MLS here in Charleston SC (CTAR) realtor board and our board only refreshes their server’s data twice a day, or once every 12 hours. Although Trulia, Zillow, Redfin, and Realtor.com and even other agent websites with vendor provided services tout 15 or 30 minute refreshes, it’s really just hogwash. Their servers might really refresh their database that often, but unless the board is also doing that (which they aren’t), then everyone, every realtor, every real estate agent with property listings, every real estate website has the same exact information (assuming their servers are grabbing at least twice a day as well). I talked to the CEO of one of the nation’s best RETS IDX WordPress Plugin vendors: “typically we only set that rate for boards with lot of users because of the additional load it puts on server, the thing is, most of our [MLS] boards update twice a day because that is all the board itself updates and some boards restrict when we can pull data to early morning hours anyway. So basically they [Zillow, Realtor, Redfin other Vendor services for Realtors] have a loop that pulls the data and it takes about 30 minutes to run through that loop however, that data may not be updated but twice a day. It’s been my experience that most MLS boards around the country work in the same way. Primarily it’s a technology limitation thing. No matter what they want you to believe”. For them to make that claim that they (unlike others) have the most fresh listings simply is false. It’s as fresh as anyone else’s. The MLS board has the power over Zillow as pointed out by Inman.com. Furthermore, it’s my contention and most Realtors in the know, argue that going through your local agent will ALWAYS be the best place for anything pertaining to real estate vs a tech company that is simply their trying to grab the users contact information and sell it to real estate agents. Zillow, Trulia, and Realtor.com are not real estate companies at all, they are just web technology businesses. In short, Do your local agents a favor and stop using them.
Being A Good Real Estate Clients Is Just As ImportantI know most of you probably feel that as agents we are there to work for you, and I don’t disagree, but with all business being easy to deal with goes both ways and benefits both parties involved. Real estate is no different. You know old saying “Do unto others as you would want done to you”? That’s what buyer and seller clients need to think about while working with their agent, however all too often that is not the case. Many buyers and sellers do not consider that the agent also has a life, a family, OTHER clients than just them, and so on. Recently I received this letter (ABOVE) from a prospect I showed property to:I did not cash this check, but you can bet I will keep in touch with this client because at some point there is a good chance they will likely consider purchasing in the future, and I will go out of MY way to take care of them. Simply because it’s my job, but ALSO because they were SOO considerate as to mail me $100 check and say THANK YOU. As the letter states it’s not customary or necessary for them to do this, and it made my day, but it definitely makes me want to work that much harder for these people than those who think I am there to jump through hoops for them.Furthermore, I have many wonderful clients that have been thoughtful of my time, easy to work with, respectful of my professional advice and thus I make it my point to work that much harder for these types of clients. It doesn’t matter what kind of industry you are in, being considerate and kind as the business owner, AS WELL AS the customer is just as important to ensuring you will get the absolute best service and best deal possible. Customers and clients who make sure to be thoughtful and kind to the people they work for without question get a much better experience than those who do not.True story:I once had people call me to see property last minute (although it's customary to require at least 24 hrs) and I jumped through hoops to get two properties set up then drove over to the first address which was 25 mins away only to have no one there to meet me. This is rare, but it does happen.As Realtors we understand that not all listings or showings will result in a closed transaction with a nice commission, and the good agents gladly accept this fact. That’s ok, but if you ask a real estate agent to take time out of their life, or their other client’s attention then all we ask is to be courteous, punctual and appreciative.In all kinds of business not just real estate being thankful, understanding and appreciative goes a very long way. The next time your real estate transaction is difficult and not enjoyable you might want to look in the mirror because it is quite possible you were the reason.
Charleston SC Real Estate Market Trends Aug 2015It’s just over the half way point for 2015 and the housing market seems to be moving along at a steady pace, and depending on where you live most cities are improving well each month or quarter. Residential real estate in considered by most economists to be the leading indicator of how the economy is performing. According to USA Today 20 major American cities, home prices in May were about 4.9% higher than May of last year, according to the S&P/Case-Shiller Home Price Index. Although that sounds great its deceiving because that’s the same pace of growth as April, which surprised economists when it fell short of expected growth.Locally here in my market of Charleston SC we are moving in the right direction at a good pace. Not too fast, but not slowly either. The leading indicators most real estate agents and economists follow for real estate all look good. For the month of July new listings, and sold listings are pretty much unchanged, which is the case for the last few months. Meaning our housing market here in Charleston isn’t too extreme in just one direction. Sold home prices are up about 10+/- % from April 2014, and the absorption rate has dropped from 6 months to just under 5. Days on the market has also dropped from an average of 96 to 66.CHARLESTON TRI-COUNTY REAL ESTATE TRENDSNationally price increases of single-family homes have stalled a bit to 4-5% this year, said David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. He said he expects price increases to slow over the next two years, as wages rise to catch up with housing costs.The Case-Shiller index tracks only the re-sale prices of existing single-family homes. A separate report last week showed median sales prices of existing homes hitting a record high, increasing 6.5% year-over-year to $236,400, the National Association of Realtors said. Sales increased 3.2% to a seasonally adjusted annual rate of 5.49 million in June. Economists had forecast that homes sold at a 5.4 million annual rate, according to the median estimate of those surveyed by Bloomberg.Data used from USAToday.com
Inaccurate Information Zillow TruliaTake Zillow & Trulia With a Grain of Salt I have a current client that I am currently negotiating a deal with and the contacted me all up in arms about the property with the belief that the house wasn’t coming with the standard kitchen appliances, or HVAC in the sale. So I asked them where did you get that information from? Almost knowing what they were going to say without having to ask, their answer Trulia. As if Trulia and Zillow are the “Gods” of All knowing real estate?! People, those two companies are NOT real estate companies, they are ONLY tech companies with web developers writing code that pumps out information they can scrap and dig up from other sources, and HOPE that it is accurate in which most of the time it is not. Furthermore, since they themselves are just scraping, and pulling in data from other 3rd party sources who’s to say that the source of their data is even accurate. I wrote an article about this very topic “Realtor Will Always Be Best Place For Information“, because of this exact problem. In the case of my clients they were looking at what was the OLD original listing from 2010, and here we are in June of 2015. So because of Trulia I had to calm down my buyers and let them know that the house we were working on getting them did indeed come with the normal conveyed personal property for most transactions in our area of Charleston SC. Zillow is the most popular online real estate information site, with 73 million unique visitors in December. Along with active listings of properties for sale, it also provides information on houses that are not on the market. These two sites are called aggregators, meaning they compile as much data from wherever they can get it, then archive (save it) so who knows what you’re going to get. Most prospective sellers are familiar with Zillow’s “Zestimate”, and use it often where they will quote that number to their agent as a gauge of market value. The LA TIMES questioned the chief executive at Zillow: If a house for sale has a Zestimate of $350,000, a buyer might challenge the sellers’ list price of $425,000. Or a seller might demand to know from potential listing brokers why they say a property should sell for just $595,000 when Zillow has it at $685,000? This is a nightmare of the industry. When CBS questioned Zillow’s exec about this problem here is what he said; “Back to the question posed by O’Donnell: Are Zestimates accurate? And if they’re off the mark, how far off? Zillow CEO Spencer Rascoff answered that they’re “a good starting point” but that nationwide Zestimates have a “median error rate” of about 8%. Eight percent!! In real estate that’s a huge difference! On a $500,000 house, that would be a $40,000 disparity. That’s just the median error rate, many times it’s off be much larger; and so much so that at the bottom of Zillow’s home page in small type is the word “Zestimates.” This section provides helpful background information along with valuation error rates by state and county. In the LA TIMES article: For example, in New York County — Manhattan — the median valuation error rate is 19.9%. In Brooklyn, it’s 12.9%. In Somerset County, Md., the rate is an astounding 42%. In some rural counties in California, error rates range as high as 26%. In San Francisco it’s 11.6%. With a median home value of $1,000,800 in San Francisco, according to Zillow estimates as of December, a median error rate at this level translates into a price disparity of $116,093. One agent went to their own efforts to do research on this pervasive problem, and found on 17 sales Zillow overestimated values, including two houses that sold for 61% below the Zestimate. In 25% of the sales, Zestimates were higher than the contract price. In 95% of the cases, he said, “Zestimates were wrong. That does not inspire a lot of confidence, at least not for me.” In a second ZIP Code, Dowler found that 100% of Zestimates were inaccurate and that disparities were as large as $190,000. In summary.. Take the value you get from Zillow’s estimate exactly like their CEO states: a starting point only, do not take it as bond. Only your local agent will have the most accurate data.
Real Estate Market Not As Robust As You’d ThinkWell the Fed has finally cut back the bond buying program known as Q.E. or quantitative easing. Now that most of the “deals” are gone, and the economy has come up out of the mire where are we now as it pertains to the real estate market? Some experts think that we might be approaching another bubble. Foreclosures have fallen to new lows since the crisis, and investors, while not selling their homes, are not buying nearly as many. That has taken much of the air out of home prices. In addition, the number of homes for sale is rising, pushing sellers from the driver’s seat to the way, way back.Just last year 2013 was almost what some would call a banner year, and especially as compared to the “crash days” of 2008-2012. Stan Humphries, chief economist at Zillow. “At this time last year, we were worrying about a number of frothy markets that looked like they could be on the edge of another housing bubble, places where homes were appreciating at more than 20% per year and where buyers’ heads were spinning just trying to keep up.”The Standard & Poor’s/Case-Shiller 20-City Index of home prices rose 5.6% from August 2013, S&P said. That’s down from a 6.7% gain in July and well below the double-digit annual increases seen in most of 2013 and earlier this year.So how does the Charleston SC real estate market look you ask?While most housing analysts do not expect home prices to go negative on a national level again, some have floated that possibility. Home prices soared from 2003 to 2007 due to cheap and easy credit. When that went away, prices plummeted nationally for the first time in history. In 2011 and 2013 when prices jumped due to the Federal Reserve’s intervention; purchasing billions of dollars worth of mortgage-backed bonds it pushed the average rate on the 30-year fixed to a record low. That pulled buyer demand forward, providing investors with cheap cash to buy foreclosures. Some argue that as that demand goes away, housing will pay a price again. We are starting to see that now.The broader S&P/Case-Shiller National Home Price Index also slowed in August, posting a 5.1% annual gain compared with 5.6% in July. Although, there is an obvious slow down in the real estate market it’s not time to “head for the hills”.David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices; “The deceleration in home prices continues, despite the weaker year-over-year numbers, home prices are still showing an overall increase, as the national index increased for its eighth consecutive month.”Source Content From USAToday.com
A Realtor Will ALWAYS Be Best Place For Most Accurate InformationI write this with a little trepidation because I must admit as an agent I have used in the past, some of the tools that Zillow created, such as their older widgets and APIs. However, I think it’s time the public understands what exactly the major real estate listing aggregators (being: Zillow & Realtor.com) a.k.a. syndicators are really up to and why you as a user should take what they have to say with a grain of salt. I am a licensed real estate broker in Charleston South Carolina (since 2005), and I once founded and owned a flourishing mortgage company for 9+ years to which I knew hundreds of real estate agents. So it’s not like I don’t know what I am talking about when I say real estate agents (most specifically Realtors) will ALWAYS be your BEST and MOST accurate place for reliable factual data about sales, listings, and the like. Assuming they are good, intelligent ones. Let me explain. Zillow, Trulia, Movoto, & Realtor.com are not a real estate companies, nor are they in the business of selling real estate so what sense does it make to take their information as fact? They are tech companies, that make their profits by selling agents ad space and leads they derive directly from the listings we as agents put on MLS. What’s so bad about this is that they take advantage of the fact that most agents don’t have the deep pockets they do to compete with them in the online real estate search market. That’s not the worst part, as many have found out the information they distribute to the public a lot of the time is incorrect, and inaccurate at best. Zillow is notorious for publishing outdated properties that are no longer on the market. I have had prospective clients call me and ask about a property only for me to tell them that home isn’t for sale. They say to me, “but, I saw it on Zillow”. I regularly receive inquires from prospective buyers who’ve seen this or that property for sale on Zillow or Trulia. When I look it up I find that the property is in escrow (under contract), or was recently sold, or was sold literally years earlier. Not to mention that the sales data, sales trends, and graphs they show are on average 20% off from the actual market which ONLY agents have access to. Sure they are pulling in sold homes data, and listings data then using some algorithm to regurgitate it back out in the form of a graph or stats, but there are other market factors that they can’t take into account because they don’t have actual MLS and local market intel your agent would be analyzing. The MLS listings published by the syndicators are mixed in with inaccurate and unreliable data that the syndicators gather from other sources. As a result, the reputations of Realtors and the Realtor Multiple Listing Services are compromised. What’s the MLS? Essentially it is just a communications portal for agents and brokers to share listings, details, and data about properties owners have employed the help of agents to market and sell. In closing, ONLY your local agent can provide you with the MOST reliable and accurate understanding of the market and how to negotiate your home’s sale price, and or your offer price. If you’re going to use aggregator websites like Zillow, Trulia, or Realtor.com, use them as a nice, pretty way of looking at homes only… THEN call an agent (Realtor) for the facts.
3 Simple Steps To Keeping Your House Well MaintainedWhen buying or building a home it’s more than just buying it and making the payments, it’s an investment that has to be nurtured and cared for like your 401k or IRA. Aside from the obvious growth had by equity from market conditions your potential for future profit in your home also is derived from how well you take care of it, how much you saved throughout the ownership of the home in monthly and yearly expenses. Well maintained and cared for real estate is key to making sure that when you sell you get the most “bang for your buck”. What many people don’t consider is that by being neglectful of easy to do regular maintenance you cost yourself more money in the long run. Home inspectors will catch problems in the home when you go to sell it, so if you just keep up with it while you live there you reduce your liability and expense.1.) For example, the roof is a huge part of your home and it’s “health”, and yet many do not consider these things when buying a home. As example shingle roofs only last 15 years or so here in my local area, Charleston SC, and subsequently Charleston SC roofing companies are pretty busy year around. The harsh heat of the summers on the coast of SC, coupled with how short the winter is makes for a perfect environment for roofs to get dry and cracked so roofers in Charleston SC have to stay vigilant with their work. Getting a new roof on your home also decreases your property insurance since roofs are one of the 4 major components to a houses overall structure. Many roofing contractors in Charleston that I know will set their customers up on a yearly service agreement where for only a couple hundred dollars a year, they’ll come inspect the roof twice a year for leaks, and potential problems.2.) The other thing that is very important in your home’s upkeep is painting and caulking. I know it seems obvious, but as a Mount Pleasant real estate agent who does a lot of business with home builders in Mount Pleasant SC I hear all the time about their past customers that they have to help out later because they don’t keep up with the simple regular maintenance issues like caulking and painting after 5-7 years since it was built. When a house begins to settle and age the materials used become dry, cracked, stretched, and stressed naturally, and by no fault of the builder or contractor. It’s just normal wear and tear. When you live in an ever changing climate area like Charleston SC where it’s extremely hot in the summers and then get’s cold in the winter, then really warm the next day in the winter expansion and contraction is to be expected. A good Charleston SC area contractor will explain these things to their clients so that you as a consumer know what to be prepared for after construction and move in.3.) Wood in your decks, and deck railing if not protected will get dry and begin to not only fade but also splinter. So within a year or less it is good to at least stain your deck with a good protectant to seal it from water and protect the wood from the sun. There are many good products on the market for older wood decks that are thicker and stronger than paint. These products like: Rustoleum Restore, Olympic Renewit, and Behr Deckover are awesome in filling in already splitting wood cracks and coating well without having to replace the entire deck. Homes also shift a lot with heavy winds that contribute to things like nail pops and caulk pulls. As far as exterior concerns, keeping seems in your siding caulked well to not allow water in behind is key to making sure that you don’t have problems down the road.In closing, watch closely to your home and take a detailed look at things like the decks, rails, siding and roof to make sure they don’t need proper maintenance care. Without paying attention to these could cost you more money in the long run.