Plantation Lakes Blog!

The way the media treated last week’s federal funds rate announcement by the Federal Reserve Board was a convincing demonstration of how much importance is placed on that singular piece of the financial puzzle. That rate may not be directly tied to Myrtle Beach mortgage interest rates, but since it determines lenders’ borrowing costs, its effect is considerable.

For many years now, Myrtle Beach mortgage interest rates have been comfortably nestled near the bottom of their historical range. Many Myrtle Beach homeowners have enjoyed the resulting low monthly payments on their mortgages. Myrtle Beach home sellers have likewise benefitted from home loan interest rates that make their properties more affordable than would otherwise be the case.

Real estate repercussions are a major part of the reason that the Fed’s announcement, which came midday last Thursday, had the national media holding its collective electronic breath. With ten minutes to go, one cable network talking head could add little illumination. “Wall Street will be watching the announcement very closely,” was her understatement. Channel flipping with five minutes to go, viewers found the streaming banner at the bottom of one network trumpeting BREAKING NEWS…BREAKING NEWS… before the fact. On CNBC, “the most highly anticipated announcement in years” was awaited by four commentators who had the unhappy challenge of predicting the decision mere seconds before the fact. Above the ever-moving streams of real-time data (oil was down, the stock markets up) panelists chattered about China (“it’s big and mysterious”), inflation targets (“missed again”), and optimism (“a rate hike won’t hurt the economy, it will help”). Only if the Fed “saw something down the road,” it was agreed, would they not raise rates. Then, just 5 seconds to go…then-

The Fed left rates unchanged.

The most highly anticipated announcement in years was, er, the same one it’s been making since 2008.

Citing concerns over global this and financial that, the Fed said they were going to be monitoring them. The economy expanded at a moderate pace, and housing improved moderately, they said. But since global conditions might cause trouble...

The media’s excitement level flat-lined within minutes. “The markets are not panicking,” said a gentleman in a snappy suit. He looked irritated. “I blew it,” said another, who moments before had thrown in with the majority predicting a rate rise. “They cited uncertainty,” he frowned; then blurted, “The Fed is the biggest source of uncertainty!”

The stock markets didn’t react at all at first. Later, they closed mixed.

The next day, mortgage interest rates crept downward.

What seemed to be an excitement bust for the media was good news for many of the viewers. When the Fed funds rate continually hovers close to zero, there’s ample reason to suspect that Myrtle Beach mortgage interest rates might stay put for a while. TheStreet website later reported that they expected rates to rise a bit before year’s end. Given the recent record of expert predictions, it might be safer to stand behind one with a better chance of success: the next Fed announcement, I predict, will be the most anticipated announcement in years.

Meantime, if you have been mulling over whether to take advantage of the current balmy mortgage interest environment, I hope you’ll give me a call!

In Myrtle Beach real estate, there are happy words (“sold!”) and there are troubling words (“default”). Because of the associations they conjure up, some phrases just automatically make us happier. Two of the leaders in the positive category are the magical words, ‘vacation home.’ All by themselves, they can trigger a smile. Why not? “Home” is comforting; “vacation” is fun. Put them together in “vacation home” and you’ve got a double positive. It’s a real estate equivalent of Jimmy Buffett’s Cheeseburger in Paradise.

As the economy recovers, some American families are doing more than just smiling at the idea. The Wall Street Journal says that vacation home sales jumped more than 50% in 2014—up from 717,000 the year before. Quicken Loans reports a jump “in both the number and dollar volume of second home mortgage applications.”

To a Myrtle Beach homeowner with sufficient wherewithal, there are some practical, real life incentives for moving the idea from daydream to the ‘to do’ list. The primary motivation is what comes first to mind. Just as a vacation is a welcome respite from the day-to-day, a vacation home needs to qualify as a destination that is pleasurable in itself. Where that could be differs for everyone, but whether it be the beach, desert, mountain, lake, cultural metropolis or outdoor sporting mecca, any Myrtle Beach homeowner’s vacation home should be a haven inherently suited to relieving the stress of the workaday world. Although it would seem to be properly classified as a pure luxury expense, vacation homes can be more financially sensible than that.

The Kiplinger web site has a number of observations for vacation home buyers. It finds that some mortgage interest rates on second homes have lowered to first-home rates. Another alternative is the “favorite source” for all-cash purchases: a home equity line of credit. According to Kiplinger, “Mortgage interest on a second home is deductible on as much a $1 million in principal for both homes combined.” If lenders calculate eligibility via the Fannie Mae and Freddie Mac guidelines, a borrower’s total debt payments should not exceed 36% of gross income…but if the second home is to be rented, that income can be part of the calculation.

Which brings up some other possibilities. A vacation home can not only cut down on vacation expenses (hotel and restaurant prices are rising, after all); if rented out some of the time, it can contribute offsets to its cost. To take advantage of IRS rules regarding personal versus rental classification, you should consult a tax expert. Since a quarter of vacation homes are rented out at least some of the year, it’s a tactic that deserves investigation.

Perhaps the advantage that’s talked about most for second home buyers is the contribution it can make toward retirement. If a retiree ultimately converts a vacation home to principal residence, profits from the former home can make a handsome contribution to the retirement nest egg. And if by retirement time that vacation home has been paid for in whole, it can make for an even more pleasing financial picture.

For a Myrtle Beach resident with sufficient resources, purchasing a vacation home can be a practical as well as emotionally sustaining venture. If it sounds like an idea worth investigating further, talk it over with your financial advisor—and I’ll be standing by to help with any and all real estate considerations!

Ever since the real estate world turned the corner and plunged full bore into the virtual world of home computers, cell phones and iPads, Myrtle Beach home buyers and sellers have benefitted greatly. There had been an issue about the fate of the once closely-held and jealously-guarded Secrets of the Kingdom—“the listings.” The Myrtle Beach listings are the compilation of current details about homes that are up for sale in Myrtle Beach . There is no single national clearing house for U.S. listings. They are run regionally at local and state levels. But in just about every part of the country, being in possession of the latest listings book was a necessity for real estate professionals.

As computers and then dial-up modem connectivity put real estate offices in touch with new digital listing databases, it became possible to replace the once-a-week listing page mailings with instantly updated listings. Even the most stubbornly technology-resistant could not deny the obvious superiority of electronic listings. Next, as Internet access became more and more common, it became clear that the digitized listings could go online for clients, too …creating something new: instant public access.

You can imagine how much resistance many in real estate’s old guard put up against that development! Historically, the only way a buyer could be sure to find out what Myrtle Beach properties were for sale had been to thumb through an agent’s listing book, or to have their Realtor® copy the relevant pages. Giving away that irreplaceable asset seemed to some to be the height of foolishness. On the other hand, the forward-looking segment of the industry saw the writing on the wall and embraced the idea that easy, universal access to listings was going to be inevitable. Their vision won out.

A surprising thing then happened—pretty much the opposite of what the foes of open access had feared. Although the volume of homes sold by rose and fell, all right—it did so in the same way as before: up and down as the economic fortunes of the country waxed and waned. Myrtle Beach real estate brokers and agents didn’t wind up losing business at all. In fact, with clients now freely browsing through instantly updated listings, they were becoming more knowledgeable on their own. They were becoming better and better clients!

It turned out that the real estate pros’ services continued to be in demand by both buyers and sellers. Today, the percentage of sellers who choose to rely on a Realtor is actually rising. When it comes to everything from creating conforming listings (with buyer appeal) to handling all the technical details involved in completing a sale, going it alone—even when the online tools are so tempting—is still a last choice for most.

Ditto for the buyers, who now frequently begin their house hunt on their own. The choice to opt for professional help is popular not just because of the support services they receive, but also because of another feature buyers appreciate: they’re available at no cost to themselves.

There’s no doubt in my mind that the advent of Myrtle Beach listings online is a terrific boon, across the board. It’s a valuable addition to the experience I bring to facilitating the buying and selling process—equally accessible with a simple phone call to my office!

If you are at all typical, you probably won’t put even minimal thought into planning for selling your Myrtle Beach home until there’s a good reason to do so. One of the best parts of being a homeowner is the comfort you feel from having a stable home base. For a lot of us, thinking about selling your home (and then finding another; then moving) produces the opposite reaction. If we don’t have to start planning for migrating the whole household, we’d just rather not, thank you very much.

In truth, doing this theoretically-only kind of thinking won’t be so disquieting. Since an actual sale and move is nowhere on the horizon, thinking about how you would prepare isn’t nearly as stressful as the real thing. And there are a couple of practical reasons why it can be worthwhile:

REASON 1: When it comes to actually selling your home in Myrtle Beach, you will almost certainly find some minor (and even major) features that must be changed to make the place more appealing to prospective buyers. It might be upgrading or expanding a backyard deck; it might be turning a shopworn kitchen island into a butcher block showpiece.

Some of those upgrades might involve a level of expense that we’d postpone until it was absolutely necessary. Yet as a business proposition when you’re selling your home, such improvements may be just what’s needed to make your place an irresistible buy.

So the first good reason to plan for selling when you have no intention of selling is that, instead of passing on a more livable place to the next owner, you get to benefit from living in the much more livable place yourself! This is really the best reason. It’s amazing how often I hear sellers say, “(big sigh) I wish I’d done that years ago. Why didn’t I do that years ago?”

REASON 2: When you’re not planning to sell your Myrtle Beach home anytime soon (or perhaps anytime at all), you have an advantage that won’t be available when selling is imminent. That’s the ability to think about how the place will look and feel five or ten or twenty years down the line—and doing something to make it the best it can be. Most often, this involves landscaping decisions that can be made now for a next to nothing—and yield big dividends later on. Saplings that are inexpensive to plant this year can grow to provide shade and peaceful beauty a decade hence. Likewise, a problem tree that’s perfect right now (but whose roots will one day undermine your front walkway) might be mitigated by a young replacement nearby. When the offending tree has to be removed, the area won’t left barren.

Thinking about the selling of your Myrtle Beach home long before you have any serious plans to do so is a little like selling your home to yourself. You’re a discriminating prospect, after all. If a few improvements will make the place a richer environment for all the years you and your family will be living there, it’s certainly worth thinking about—and acting on—before the time comes to move on.

P.S. And just in case the time for selling your home arrive sooner rather than later, I’d be delighted if you will consider giving me a call!

When you have a Myrtle Beach luxury residence ready put on the market, you are about to enter a specialized area of the real estate realm. The luxury home market is, as the name implies, other than ordinary—and so are some of the ways to effectively navigate through it.

First off, we have to recognize the importance of the fact that the pool of prospective buyers is a good deal smaller than that for a standard home. By the National Association of Realtor®s’ assessment, it comprises only about 8% of the buying public. This speck of a target audience might seem to create a discouraging marketing handicap—but it’s balanced by the fact that these well-heeled buyers are only attracted to about 8% of the homes presented in the Myrtle Beach listings. These buyers have more defined objectives than most: a true luxury home prospect isn’t about to accept any other than a high-end residence. Because there are fewer of such properties on the market at any given time, your own luxury residence stands to benefit. Limited supply is, after all, the simplest marketing cure for a limited demand situation.

One characteristic that distinguishes the best luxury residences is exactly that: it’s distinguished. Luxury residences do well when they have distinctive, notable features in their design or setting—even better if those features create a theme that’s memorable. Lacking that, a property may be able to depend upon sheer size or quantity (bedrooms, bathrooms) as well as quality construction to validate its place in the luxury category.

To be in show condition, a property in any category that is up for sale in Myrtle Beach needs to be well maintained and presented. But for luxury residences, there may be a difference in the degree of attention required. The finer the property, the more attention any lapse attracts. Fair or not, people have a tendency to notice (and remember) even minor maintenance miscues—anything that stands out. The last thing you want is for a minor flub to be the most memorable thing a prospect takes away after an otherwise sterling showing.

There is also a seemingly extraneous factor that can help a luxury residence sale: the homeowner’s disposition. Eligible buyers in this category are typically busy people with demanding schedules. They may also be used to calling the shots in their own careers—and as potential buyers of an expensive property, assume they will be treated like what they are: VIPs. Since the owners of Myrtle Beach luxury residences probably have similar credentials deserving the same degree of deference, being asked to accommodate a buyer’s sudden schedule change can be grating. The more understanding an owner can be, the more likely to result in the kind of positive atmospherics that produce the hoped-for result.

The actual mechanics associated with the sale of a luxury residence are generally more involved than with run-of-the-mill home sale transactions because financing, inspections, etc. are usually more time-consuming. To keep the proceedings on track and as efficient as possible, a key ingredient is the same as that which propels the entire process: close communication between the owner and the owner’s Realtor.

It starts with the kind of no-obligation consultation I’m pleased to offer—and it’s only a phone call away!

A lot of what Myrtle Beach readers and TV viewers see and hear can leave them with the definite impression that the nation is headed for rough sledding. Most of us do understand that the “news” is selected to get our attention…and that often results in a steady stream of headline-grabbing accidents, malfeasances, and international catastrophes of every stripe.

It could make anyone feel pessimistic about the future. When it comes to how we plan for our own personal prospects, issues like a rising national debt and stymied income levels could lead any Myrtle Beach resident to envision a future of gradually diminishing living standards. When people fear a storm coming, they prepare. Pull in their horns. Cut back. Economize.

But apparently if our futures are to bring the kind of storm clouds hinted at in the nightly news, few of us believe it.

The evidence for that conclusion comes from no less an authority than the United States Census Bureau. It issues an annual report called The Characteristics of New Housing. Reading the latest, which summarizes new housing built last year, yields some surprising information. This, too, is news. It may not have reached any of the news outlets Myrtle Beach readers would have seen, but I think it deserves a headline or two.

The first new housing surprise was that of the 620,000 single family homes completed in 2014, 565,000 were built with air conditioning. That’s 91% of them. I’d expect that kind of statistic for the Sunbelt states, but not nationwide. Clearly, the day of swamp coolers or toughing it out during September heatwaves are over. The era of relying on good cross-ventilation in a home has apparently gone the way of automobiles sold without radios (or, come to think of it, without A/C!).

More significantly, 64,000 of the more than half million homes were completed with two bedrooms or less. That may not surprise—there are many two-bedroom Myrtle Beach homes, and some of them are elegant. What’s surprising is that 282,000 had four bedrooms or more. 4-to-1 over what used to be the U.S. standard of two bedrooms. If hard times are ahead, clearly the new housing buyers plan to weather them with elbow room to spare.

The rest of the Census Bureau’s survey is similar, and points to American homes with physical plants that are pretty opulent by historical standards. Only 25,000 had 1 ½ bathrooms or less, but nine times that many (221,000) were designed with three or more bathrooms. If we’re headed for a new Great Depression, at least we’ll meet it freshly bathed.

The median size of a single-family home completed last year was 2,453 square feet. When you consider that it was about 1,600 in 1973—and that the average number of persons per household has gone from 3 to 2.5 during the same period—you see why the American Enterprise Institute says that the living space per person has nearly doubled.

Myrtle Beach residents with long memories have probably noted that the average household does seem a lot roomier in 2015 than in decades past, but probably less so the extent of the difference. For anyone looking to expand their own family’s elbow room, this fall’s Myrtle Beach listings provide a terrific lineup of candidate properties. Give me a call if you’d like to take a close look at some of them!

If you begin a search for a new home by going online to check out the Myrtle Beach listings, it’s likely that one of the first search criteria you enter will be the price range. After all, unless you are a virtual looky-loo who is just checking out how the other half lives, your budget will dictate which homes you seriously consider. If you are one of the more than two-thirds of us who will be counting on a loan to help finance that home purchase, the monthly payment amount is really what matters.

That’s why you don’t have to be a dedicated number-cruncher to be keenly interested in the direction Myrtle Beach mortgage interest rates are going to head. In fact, if you aren’t one of those whose idea of a good time includes working out spreadsheet calculations, it probably came as a shock the first time you realized how big a deal it is when Myrtle Beach mortgage interest rates notch up or down even a single percentage point. If you’ve never sat down to look at the numbers, please sit down before continuing…

For a quick example, suppose you were Average American Homebuyer taking advantage of an average American home purchase just this past July. Your family income was a bit higher than the median of $55,000—say, $60,000—so if you went with the lenders’ standard rule that 28% of income is the most a housing budget should allow, that meant $1,400 would be your maximum mortgage payment.

You found a terrific buy—a brand new home at exactly the median U.S. new home price, $286,000. You had saved up diligently, so the 20% down payment was available. That made enough of a dent in the sales price to qualify for the median mortgage interest rate, which was July’s 4.05%. Your annual taxes and bank-required insurance came to an annual $3,000, which added $250 a month). The whole situation made you more than median-ly happy, because it meant that your monthly mortgage payment on the home’s 30-year fixed rate mortgage came to only $1,350. That provides $50 of breathing room…

But remember, this quick example is one that required you to sit down. Sooooo -- what’s the problem? It’s this talk about the Federal Reserve wanting to raise the federal funds target rate. That would have to trigger rises in the mortgage interest rates in Myrtle Beach (and everywhere else). In our quick example, taxes and insurance costs stay the same; but suppose the mortgage interest rate notches up one little percentage point, to just 5.05%? That’s still below the historical average, yet the same home—and the same loan except for that one percent raise—now requires a monthly $1,486 payment. That crosses the budget recommendations—and although some lenders would likely consider other factors that might make the loan possible, that single percentage point rise does wind up costing Average American Homebuyer more than $1,630 a year (and nearly $50,000 over the life of the loan).

The reality is that prudent home shoppers are currently able to consider properties at higher price ranges than will be the case after mortgage interest rates rise. For them, the market is literally wider than it will become later.

A further note: August saw Myrtle Beach mortgage interest rates fall below even July’s 4.05%. Another very good reason to give me a call!

The Myrtle Beach fixer-uppers:

You know them when you see them—especially when going through the town listings, where their photos probably lack quite the allure of the others. You can also spot them by some cautiously-phrased tipoff language. They are “handyman specials” that are offered “as-is” or that “need attention.” A perplexingly low asking price is a dead giveaway, too. Most often, if, considering the features listed, the number is too good to be true, you’re looking at a fixer-upper.

If you are house hunting, are they worth looking into? Or if you own one, should you do the fixing-up? How do you make a rational decision?

First, about whether to get to work before you offer your own Myrtle Beach fixer-upper to the world:

It’s true that a fixer-upper can be a serious magnet for prospective buyers, particularly when those buyers aren’t averse to putting in some old-fashioned elbow grease. If you are able to accept the kind of low sales price that will make yours a standout from competitors, it’s bound to attract a lot of interest from budget-minded householders—as well as professional house-flippers and contractors who work on their own account.

The rule of thumb for owners readying a property for sale is to investigate whether smaller replacement projects—the kind that add curb appeal and/or kitchen glamor—are likely to boost value above the cost of the undertaking. Most reports on the subject find that large-scale projects seldom return even 80% of their cost, although when chosen strategically, per the NAR® “…they can improve the market position of the property in relation to the competition.” (Translation: move it out of the ‘fixer-upper’ category).

From a non-professional buyer’s point of view, though, the question is whether the fixer-upper route is a better choice than the costlier entries. If you have little interest in extensive DIY projects or decorating overhauls, you already know the answer: skip the Myrtle Beach fixer-uppers. You have to be enthusiastic to make one of those worth the undertaking. You needn’t bother with any of the super bargains with listings that admit “needs some TLC.”

If you are on the fence, the answer may well lie in a careful appraisal of what will be needed to bring the candidate up to neighborhood standards. If you are an experienced DIYer, there are software packages available that can help you estimate expenses. If not, our Myrtle Beach contractors will be able to provide an itemized ballpark estimate for such a project. If the combined cost of purchase and upgrades still create an attractive package—and you are prepared for some dislocation as major work is being done—a fixer-upper in Myrtle Beach is worth serious consideration.

This fall, the Myrtle Beach market has offerings with real value in every category. Call me to get the complete low-down on any and all that pique your interest!

This is a list that hasn’t changed much since Hannibal first considered getting a larger place for his elephants. He decided that the Roman Empire would be a fine choice (but history tells us that the move didn’t work out).

If Hannibal had consulted a knowledgeable Roman real estate agent, he might have chosen a more suitable property, and history would be different. Hiring the right agent can be pretty important—and choosing the right agent means asking some good questions.

Here’s a list of five questions to pose when interviewing Myrtle Beach real estate agents. It doesn’t come with a crib sheet, because there aren’t any perfectly correct answers. If there were such a thing, sooner or later all the interviewees would know them.

Instead, this list is intended to provide a simple way to compare the candidates’ responses—at the same time, providing some essential information about the current state of the Myrtle Beach real estate market. Along the way, you should get a chance to sample how well you and each agent communicate. Was your question understood? Was the answer clear? It’s vital that you and your representative stay on the same wavelength. Here’s the list:

1. How long have you worked in real estate—and how long in Myrtle Beach?
Knowing the nooks and crannies of Myrtle Beach's real estate market is one of the most important qualities a Realtor® can bring to the effort. Experience in the industry is the surest way to head off technical hitches before they can cause trouble.
2. What’s your best guess about how long it will take to sell my property?
The current average DOM (Days On the Market) for Myrtle Beach homes in your category are only a general guide for what to expect—and a canny real estate agent will explain that as part of the answer. If the topic of the asking price becomes a part of the discussion, you’re on the right track: one is closely related to the other.
3. How will you go about marketing my home?
The advertising media should include web and print initiatives. If the candidate has brought recent samples to show you, it displays good professionalism.
4. Will you take professional photographs of the property?
Quality photography is essential to any serious campaign, so letting potential real estate agents know that you understand its importance does double service. The agent will be on notice that you prioritize this aspect of sale preparation, and will also know that you will be diligent in readying the property for a good shoot.
5. How successful have you been over the past year?
Knowing how many homes an agent has sold recently is important, as is a follow-up question like: “How many didn’t sell?” If the agent has cogent reasons why they didn’t sell, or offers how a different approach might have helped, those too can be relevant indicators. An agent who is analytical and open to new ideas can be a good partner.

It’s always good practice to interview more than one Myrtle Beach real estate agent before settling on your final choice. I hope you plan to include me in the mix!

It looks as if the debate about the effectiveness of Myrtle Beach open houses as selling tools isn’t going to be settled any time soon. Part of the reason is the difficulty of getting accurate feedback about prospective buyers’ actual behavior as opposed to their intentions. Pollsters do their best, but you have to question the answers they come up with.

A good example was a couple of surveys that tried to pin down how future buyers intended to find their next home. The major online web giant Trulia found that more than 90% of folks who were in the market said they planned to attend open houses as part of their home search! And 62% of U.S. home buyers “reported using/planning to use online sites to find open houses.” If true, that should definitely end the debate. If nearly two out of three buyers are heading to the web to find open houses, when you add in the number who would undoubtedly see street signs or other notices, what Myrtle Beach home seller would choose to ignore what amounts to the majority of potential buyers?

The problem is that a similar study done for the National Association of Realtors® came up with very different results. The NAR found that 44% of buyers used open houses as an ‘information source’—less than half the number Trulia reported. Which survey is more accurate? There’s no telling. But there’s not much question that open houses can benefit prospective buyers. Although the Myrtle Beach internet listings provide an efficient way to survey and compare descriptions of what’s currently out there, being able to casually pop in and out of several open houses on a Sunday afternoon is a convenient way to get a more in-depth feel for what’s available in various neighborhoods.

The downside for sellers is the usual: the inconvenience involved in getting the property in top condition, making sure that pilferable objects are securely out of reach, and having to vacate the premises for the duration. On the other hand, opening the property to prospects who might not yet be as committed to buying as those who seek showings through their real estate agents is a way to widen the field of possible buyers—especially true for some Myrtle Beach properties which don’t photograph as well as they show in the flesh.

And it’s definitely a marketing plus—a foolproof way to bring wide attention to the fact that yes, the house is seriously up for sale! When the subject comes up, neighbors and passers-by are more apt to make a mental note of the house over on the next street that I remember is for sale. More than one home has been sold because a friend of a neighbor has an aunt who’s been looking for a place…

An open house can be one useful marketing tactic—but like all others, whether or not to use it is the client’s choice. If you are contemplating marketing your own Myrtle Beach home, or are soon to be in the market to buy, don’t hesitate to give me a call!