Buying Real Estate in South Carolina South Carolina
Everything you need to know about how to purchase South Carolina real estate from buyer tips, to mortgages, to closing costs.
Whether you are buying a home, obtaining a mortgage, or relocating to the area, having an experienced South Carolina REALTOR® to act as your buying agent can help you to find the best deals, and more importantly, keep you from making some of the most common mistakes. Katrina can help you to create a buying strategy that will get you into the neighborhood that best suits your lifestyle. She can connect you with the right people to get the most favorable mortgage for you and guide you through the process of inspections, appraisals, title insurance, and closing costs. Take a few moments to browse the topics below and see how Katrina can help make a difference.
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South Carolina Home Buying Tips and Strategies
Purchasing a home is not something that most of us do very often, and it can be a little overwhelming. Finding a house that meets your needs in a good neighborhood is only part of the buying process. The more prepared you are at the outset, the less overwhelming and chaotic it will be.
The goal of this page is to provide you with tips and strategies for buying real estate in South Carolina. From home inspection info to moving tips and checklists, you will find everything you need. Remember, if you have any questions, We'm only a phone call or email away!
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First Time Home Buyers
How to Buy Your First Home....the Easy Way!
Avoid the 10 Most Common, Painful, Frustrating Mistakes First-Time Home Buyers Make.
Buying a residence can be a hair raising experience. You will experience a roller coaster of emotions while finding the right place, securing the loan and finally moving in. For most of us, the first time home purchase is the largest investment we´ve ever considered. The emotions of purchasing something so expensive and personal can often cloud our business judgment.
Most home purchasers do little or no research before they invest their nest egg. Doesn´t it make sense to become as completely informed as possible before you buy your first home? This special report is designed to help you avoid 10 common and crucial mistakes. The right real estate professional can help you make good sound business decisions based on your personal situation.
- Inspect, Inspect and Inspect - Go over the inspection report with a fine tooth comb. Make sure the report was done by a professional organization. For condo purchases go over the CC&R´s, By-Laws, and Association Fees. Don´t take anything for granted... inspect everything!
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Imagine the Property Vacant - Your furnishings and decorations will be the ones filling this new residence. Don´t be swayed by beautiful furniture; it leaves with the owner. - Income + Lifestyle = Mortgage Payment - Sit down with your professional real estate agent and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix-ups. Your dream home is certainly worth a sacrifice but don´t mortgage your entire future.
- View Several Homes - See at least 7-10 properties. Don´t move too slow but don´t move on the first property you see. With your agent´s help you should be able to view enough properties to get a good overall perspective of the home market. When you find the right property all the leg work will be worth it.
- Utilize Your Team - By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your lender, title rep and agent. Each of them should work hand in hand for your benefit. Explore all the options before you sign.
- Be Columbo - Check out all costs and expenses before you sign. Utilities, taxes, insurance, maintenance and home owner dues if applicable. Make sure all utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. Ask lots of questions and be very detail conscious.
- Do a Final Walk-Through - Visit the property after all furnishings have been moved out to be sure there are no surprises. Be absolutely positive the property was left exactly as you had agreed upon in the contract. Things that could have been spotted in a final walk-through are often unintentionally overlooked.
- Plan For Flexibility - Closing dates are not written in stone. Allow for contingencies and have a back-up plan. If you or the sellers need a little more time to conclude the final arrangements, don´t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.
- If It´s Not In Writing, It Doesn´t Exist - All promises and discussions should be in writing. Don´t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. Have your professional keep an ongoing log in writing of all discussions and get the seller´s written approval on all agreements.
- Loyalty Breeds Loyalty - Be open, honest and up front with your team. Hard feelings and disloyalty will cause headaches, delays or may even keep you from getting into the home you worked so hard to locate. Take the time to select the right team in the beginning and your first home purchase will be a pleasing and memorable experience.
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When We go to a showing, what should We look for?
- Explore every nook and cranny. Pick up rugs to examine the floor. Open closets and smell them. Do whatever is necessary to find out everything about the house's basic structure.
- Try to ignore any furnishings that don't come with the house. They won't help you make a sound decision.
- On your first showing you should look for a house that meets your basic requirements:
Is it in the right location? - Does it have enough bed and bathrooms?
- Is there enough storage space?
- Is there parking?
- Is it in a safe area?
- If the house meets your basic requirements, start looking to fulfill your wish list:
- Is there an extra bed or bathroom?
- Is there a double vanity in the second bathroom?
- Is there a garden or deck?
- Is there a separate laundry room?
- Is there a basement or crawl space?
- Is the garage attached?
- Can the kids walk to school?
- Is there a wood-burning fireplace or a gas fireplace?
- What is the condition of the house - its appliances, roof, foundation, walls, mechanicals, wiring, etc.?
- Start with the general, and then move on to the specific.
- If you're still having trouble deciding, you might want to apply a simple rating system, such as assigning points according to the items most important to you. This should help you objectively differentiate among your choices.
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Condo Buying Tip List
Things to consider when buying a condominium:
- Number of units in complex?
- Percentage of owner-occupants?
- Percentage of unsold units?
- Monthly homeowner association dues?
- What do dues cover?
- How often have dues been increased?
- Any anticipated increase in dues?
- How many homeowners are delinquent in paying dues?
- Is there a fee for transferring association membership?
- What does homeowner's association insurance cover?
- Will you need additional insurance coverage?
- Is homeowner association professionally managed?
- Amount in the association reserve account?
- Any large expenses anticipated?
Is homeowner association professionally managed? - Amount in the association reserve account?
- Any large expenses anticipated?
- Is the association involved in litigation (status and likely resolution)?
- Are pets allowed?
- Can you rent your unit out?
- Are there restrictions that´ll cramp your style?
- How many parking spaces are included?
- How many storage spaces are included?
- What common facilities are included?
- What do current owners like best about the complex? (Interview current owners).
- What do current owners like least about the complex?
- How is the soundproofing?
- How are water pressure, heating systems, etc.?
- Does the developer have a good reputation?
- Are sales prices going up or down?
- How active are sales?
- Attend homeowner´s association meeting.
- Review covenants, conditions, and restrictions.
- Review bylaws and articles of incorporation, or have an attorney review them.
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South Carolina Home Buying Strategies and Facts:
Your "Must Read" Guide to Buying a Home in South Carolina
HEART AND MIND
Over the years We have discovered that most people let their heart find the home they love and then try to justify their purchase afterward.
My goal is to help you find a property that not only wins your heart, but makes good investment sense as well. When you call, you'll be tapping into a wealth of information and market experience. We am accustomed to working with a variety of clients - from the first-time Buyer to veterans of multi-million dollar real estate transactions. Regardless of your level of experience, We will answer questions with straight talk and facts. No jargon or hype. No song and dance. Just the plain old truth. Heres where you start.
Survey the Landscape
Drive around and get a feeling for South Carolina and its many neighborhoods. Then, meet with me for about an hour to discuss your plans, time frame, "wish" list and "have to have" list. At that meeting we will also discuss how we will be working together, as well as some of the legal aspects of purchasing real estate in South Carolina.
Search For Your Dream Home
After our first meeting and a review of our "game plan", it will be time for us to go out and preview some properties. Since we will have done our homework and selected the most likely candidates, we won't waste your valuable time looking at homes that are not suitable. It's likely that once you've shared with me all of your requirements, we could find you the right home in a single afternoon. However, occasionally the first day becomes a familiarization tour and it takes another day to narrow down choices. Once you've fallen in love with a home and have made a decision, we'll write up the contract on a State of South Carolina approved form, negotiate the purchase, and you'll be on your way.
Get "The Whole Picture"
Just a word about searching through the South Carolina Multiple Listing System (MLS). On MySouth CarolinaBroker.com, you have access to ALL of the listed properties for sale in South Carolina County! This is different from some agents who only want to show you houses that are in their inventory. Since this gives their client a partial picture of the available market, it could possibly result in them not getting the best chance of finding their dream home. We show all listings in the South Carolina MLS, regardless of who has them, and sometimes show "For Sale By Owners" and unlisted properties. In other words, We will do whatever it takes to find you what you want.
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Negotiating Your Best Deal
In spite of the current economic climate, ours is not a market where you can steal property. Most properties in South Carolina sell within 3% or less of their listed price. We'll provide the facts about recent sales and if We am representing you, We can help you determine the best offer to make which has a realistic chance of succeeding. My specific advice will be based upon years of experience and successful transactions.
With that in mind, here are some general tips:
- Make your offers clean and simple, with the fewest contingencies possible.
- Have "vision" beyond the obvious. Many Buyers can't see the potential in a property that doesn't present itself well. If you can, there may be an opportunity for you.
- If you are not paying cash, pre-qualify with a local lender and submit the letter of approval with your offer.
- Write a letter (or We can do it for you) to the Seller explaining why their home is the perfect choice for your family. We'll send it with the offer, because personalizing your offer can sometimes have a huge impact.
Financing, Title Work and Other Details
Most South Carolina Buyers secure financing through locally based mortgage brokers. If you don't know a good loan broker, We can help you find one. Most homes under $1 million can be financed at 75-100% of value. Terms for loans over $1 million are determined individually, as are loans for construction and vacant land. Upon sale, South Carolina requires the escrow agent to withhold three and one-third percent of proceeds from non-resident Sellers to ensure the Seller files a tax return reporting the gain the next year. Excess funds are returned. In South Carolina, the Seller customarily pays for title insurance fees and county transfer tax fees. Escrow fees typically total approximately $300-$500 but may vary. You can review financing costs with your lender.
Long Distance Purchases
Thanks to the convenience of technology and overnight delivery, some closings are handled long distance. If you are an out of town buyer, We will oversee the completion of inspections and appraisals, as well as maintain day-to-day communications between the Seller, the Buyer, the lender and the title company.
In Closing...
We am committed to remaining your primary source of information and assistance, even months or years after closing. We don't believe our relationship is a fleeting one, but rather an opportunity to establish a lasting working relationship. We understand that the greatest praise We can receive for a job well done is the referral of your friends and family. We look forward to meeting them!
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Home Inspection & Appraisal
Why do We need a Home Inspection and Appraisal?
Getting a good inspector to inspect the house before buying is essential. Sellers may cover up major problem areas in the house. So it is in your best interest to get a good inspection, but the lender will most likely require one as well. The lender will not want to take risk on a house, if they are not confident that you are getting the house at a good price without any unforeseen problems (certain loans will only require a drive-by inspection).
A Quick List of Things you should know about what to expect from a Home Inspection:
- A good inspector will check the house from basement to roof, including plumbing, heating, cooling and electrical systems, roof, floors, walls, ceilings, insulation, ventilation, doors, windows, wells, septic or sewer, foundation and the visible structure of the house.
- The inspector would suggest any repairs needed.
- When considering a particular inspector, ask for at least three references and check them out.
- A reputable inspector will never offer to perform needed repairs and should not refer you to a contractor to perform such repairs.
- You can find a good inspector by getting a referral from a satisfied customer. Avoid referrals from anyone who has a financial interest in the sale going through.
- The cost of an inspection varies with the area. It may start from $100 and go up to $400 or even more at times.
- Be sure to ask the inspector about their liability insurance coverage including "errors and omissions" (E & O) or malpractice insurance that covers inspector negligence.
- Ask for a written report within a day or two from the inspector.
- Make sure that you accompany the inspector during inspection. The main advantage of this is that you´d learn a few maintenance tips.
Checklists of things to look for when doing a self inspection of the house:
- Are there large cracks or shifts in the foundation?
- Are there leaks or watermarks around eaves and downspouts outside the house or windows and ceilings inside the house?
- Does the basement look or smell damp? Does the owner store his/her belongings everywhere but on the basement floor?
- Is the house tightly sealed? Are there drafts from any windows, doors, attic areas or crawl spaces? How much are the energy bills?
Does the drainage lead away from the house and appear to be in good condition? Do soggy spots on the lawn exist? Are any trees too close to the house or look to be unhealthy or dead? - What is the condition of the roof?
- Are there a lot of nail pops inside the house or do the floors creak or give in when We walk on them?
- Is the water clear and odor free? How is the water pressure? Are there unusual noises when the plumbing is active?
- Are there 3-pronged safety outlets or are appliances plugged in with adapters or extension cord? Do the lights flicker?
- Is a piece of furniture sitting in an unusual place hiding a stain or hole in the carpet?
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Appraisal/Valuation
Legally, you are required to carry out an appraisal of the house, before you apply for mortgage. Even banks insist on valuation of property.
An Appraisal (or Valuation) is inspection of the house to determine its value, so that the lender can assess how much it may lend. It is not a survey and is usually paid by the buyer who receives the copy of the report. Valuation is limited compared to a survey; it also identifies areas that require more detailed inspection by a specialist.
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Financing a Second Home
Arm Yourself With Information
The thought of buying a second home, a place where you can relax and enjoy weekends and vacations, is very appealing to a great deal of Americans. The mounting pressures of life make wanting to "get away" paramount in a lot of people´s busy day-to-day lives. But obtaining financing for such a venture can prove a tremendous headache.
It doesn´t have to be if you arm yourself with the proper information when you are still in the planning stages of purchasing a second home.
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So what do you need to know? Read on.
First of all keep in mind that from a lender´s point of view, loaning money for a second home is not the same as loaning money on a first home. The mindset of the lender goes something like this- because you already have a primary residence, if you should find yourself in financial problems down the line, you might halt making payments on the second home in order to preserve the equity on your main residence. That explains why most qualifying and underwriting guidelines are tougher when it comes to loans for vacation homes.
Another thing to bear in mind is that the secondary market, where the lender sells the second-home loan, has a completely different set of requirements for qualifying borrowers. Why is that the case? Let´s delve into this even further.
While qualifying for a second-home mortgage does tend to vary from lender to lender, the majority of second-home loans require a twenty percent down payment. This is the case for both an existing home as well as a new home that you plan to build. The twenty percent down applies to both adjustable-rate AND fixed-rate mortgages.
One of the reasons it is often difficult to qualify for a mortgage for a second home is the fact that the lender takes into consideration not only your long-term revolving and installment debt (for example car loans and credit cards) but also the payment you´re making on your first mortgage as well. This makes it tough for many individuals to qualify.
An idea to help give you the extra edge is to use the leverage tool of combining a seventy-five percent first mortgage with a ten percent down payment and ask the seller to carry back fifteen percent of the purchase price in seller financing or obtain a second mortgage from the lender. This is possible to do as the secondary market that purchases second-home loans will allow you to sidestep private mortgage insurance (PMI) for the simple reason that your first mortgage is less than the eighty percent loan generally requiring PMI. As well you can most likely save some money on interest by choosing a seventy-five percent loan over an eighty percent and negotiating the repayment terms with the seller.
So there you have it. Some valuable information to think about when contemplating investing in a second home. With these ideas in mind you should be well on your way to turning your second home dream into a reality!
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©copyright 2007 Christina Ellis and Associate Realty Inc.