Price your home incorrectly and it could mean a long stay on the market, a final selling price lower than what the house is worth or both.

That’s why some homeowners are electing to pay $300 to $400 for an appraisal before putting their homes on the market, said Alan Hummel, past president of the Appraisal Institute and chief appraiser for St. Paul, Minn.-based Forsythe Appraisals LLC.

Although real estate agents often do their own market analysis to price a property — and many times do a decent job — the appraiser can come in with an independent, unbiased opinion to make sure the price is right, Hummel said. In fact, if a property isn’t getting any serious lookers, an agent might even encourage his or her client to invest in the service for a second pricing opinion, he added.

Through the Eyes of a Buyer

An appraisal will look at the home from a visual standpoint, taking into account considerations from the proximity to schools to cracking or flaking paint, Hummel said.

“We’re trying to react the way a typical purchaser would,” he said.

The appraisal also will analyze the health of the local real estate market, giving homeowners more personalized expectations for selling their home — a feature especially important with the plethora of national news stories generalizing the real estate market, Hummel pointed out.

Appraisers can also use a cost approach, which will determine the price tag on a new home built to the same specifications of the existing home, Hummel said. The comparison can be helpful for newer houses hitting the market because it lets sellers know what their home is competing with on the new-construction front.

Looking Back to Move Ahead

It also might not be a bad idea to dig through the file cabinet for the appraisal report you paid for when you first bought your home, said Michael H. Evans, president of Evans Appraisal Service Inc. in Chico, Calif., and a fellow of the American Society of Appraisers.

Doing so… can remind homeowners of flaws found the first time around, and sellers might want to address curable problems before hitting the market.

Five Appraisal Nuggets

What Should You Know about home appraisals? Listed below are five nuggets of appraisal insight, courtesy of the American Society of Appraisers:

1. What the appraisal report includes: Your appraisal — which could range in length from two or three pages to more than a hundred, depending on its scope — will include details about the house, a description of the neighborhood and side-by-side comparisons of similar properties. It will also contain an evaluation of the area’s real estate market, notations of major problems with the property that will affect its value and an estimate of the expected time it will take to sell the property.

2. How an appraisal report is developed: Appraisals are opinions of value, and residential real estate appraisals compare your home with similar homes that have sold. Remember, an appraisal is not the same as a home inspection. Inspections look for physical imperfections in the home, making sure it is structurally sound and so forth.

3. How to get a copy of your appraisal: You paid for an appraisal when you bought your house. If you didn’t request a copy of the appraisal at the time, you can request it from your lender — it’s your right under federal law.

4. What to look for in the report before you sell: Focus on items that had a negative adjustment — they might be a good checklist for elements to update or remodel. Examples of issues that could cause a negative adjustment: less than the typical number of baths for the house’s size, outdated kitchens and baths, or a one-car garage or no garage in a neighborhood where two- and three-car garages are standard.

5. Why an appraisal before your home hits the market might be wise: The fresh appraisal will help accurately price the home and ensure it will eventually appraise for your asking price at the time of the sale. Sellers are sometimes shocked when their house appraises below the asking price, which could cause a deal to fall through or for the seller to be forced to reduce the home’s price.

Source: Amy Hoak, Marketwatch

WASHINGTON - Sales of new homes fell in June for the first time in four months, and the government also lowered figures for May, providing further evidence the high-flying housing market is losing altitude.

The Commerce Department reported Thursday that new-home sales dropped by 3 percent last month to a seasonally adjusted annual sales pace of 1.131 million units. It was the first decline since an 11.5 percent drop in February.

The government also marked down sales activity in May to a pace of 1.166 million units, substantially below its initial estimate of 1.234 million units.

• Analysts pointed to the drop in sales last month and the downward revision for May as fresh evidence that housing was slowing considerably from the impact of higher mortgage rates.

• Analysts said the drop in new-home sales was consistent with the slowdown shown this week in sales of existing homes, which fell for the eighth time in the past 10 months.

“The housing market peaked a year ago and has been slowly deflating ever since,” said Mark Zandi, chief economist at Moody’s Economy.com. “We can expect another year of lower sales with price declines in some parts of the country.”

Source: Martin Crutsinger, The Associated Press

Skyrocketing insurance premiums are taking their toll on Grand Strand businesses. The effect could be devastating.

Bottom lines will be squeezed and rates next year for such tourist necessities as meals and hotel rooms could be higher as businesses try to recoup their losses.

The Myrtle Beach Area Chamber of Commerce and the Council of Myrtle Beach Organizations plan to take the problem to state legislators.

“Our challenge is to identify the impact to the state’s largest tourism market. There are no easy solutions. If it’s a legislative solution, it will take non-coastal legislators to go along with it,” said Brad Dean, president of the Myrtle Beach Area Chamber of Commerce.

Problems on the bottom line

Hotels can’t pass the increases on to customers because room rates are set for the summer. But, eventually, restaurants to retailers will have to pass those increases on.

And if the rate increases and difficulty in getting coastal insurance doesn’t let up, local business owners are worried it could mean disaster for the Strand economy.

Almost a year later - Hurricane Katrina is being felt in skyrocketing insurance premiums as carriers reduce their exposure in coastal areas. Businesses are finding it’s harder to get coverage, and when they do find it, it’s a lot more expensive.

Cutting back to get by

Some Strand businesses that can’t absorb the extra cost are reducing or eliminating insurance. For those that can get insurance, deductibles are rising and insurers are adding percentage deductibles to shift more of the cost of the claim on the premium holder.

Source: Jenny Burns, The Sun News, Myrtle Beach, SC

Sales of existing homes fell in June for the eighth time in the past 10 months while home prices edged up at the slowest pace in more than a decade _ more signs that the housing market has slowed dramatically.

The National Association of Realtors reported Tuesday that sales of previously owned homes and condominiums dropped 1.3 percent in June to a seasonally adjusted annual rate of 6.62 million units.

Home Sales Down / Prices Up Slightly

The 1.3 percent decline in sales… represented the third drop in a row and the eighth decline in the past 10 months as the nation’s once-booming housing market has shifted to a slower pace in the face of rising mortgage rates.

The median price of a home sold last month was $231,000. That was up 0.9 percent from June 2005 and represented the smallest year-over-year price gain since May 1995.

The inventory of unsold homes rose to a new record of 3.725 million units, which is a 6.8 months supply at the June sales pace. That is the longest period required to exhaust the overhang of unsold homes in nearly nine years.

Condo Sales Down

For June, sales of condominiums dropped 5.5 percent to an annual rate of 805,000 units.

Further Decline Expected

Analysts said the growing level of unsold homes will further depress prices in coming months and add to the slowdown in sales.

‘With interest rates still rising and job growth slowing, the slowdown in sales will continue,’ predicted Patrick Newport, an economist at Global Insight, an economic consulting firm. He forecast that existing home sales would decline by 8 percent this year and 9 percent in 2007.

David Lereah, chief economist for the National Association of Realtors, said he believed price weakness will continue as sellers start cutting their asking prices in the face of weaker demand and rising inventories.

Source: Martin Crutsinger, Associated Press

Excerpted from article by Robert Bruss.

If you want to profit from your home purchase, buy a house or condo needing profitable improvements. Here are my top five criteria:

1. Ask how much the seller paid. Most buyers don’t ask this vital question. The reason you need to know is to discover how much negotiation room the seller has.

2. Ask why the seller is selling. Be sure to communicate to your buyer’s agent, who will then tell the listing agent, “I need to know so my buyer can make a purchase offer that meets the seller’s needs.”

3. Look for “the right things wrong.” This used to be my primary criteria for buying a house or condo at a bargain below-market purchase price. Although this reason is still ultra-important, it is no longer as important as the first two criteria.

• “The right things wrong” mean profit opportunities. Often, all that is needed are a coat of paint and new wall-to-wall carpets. Additional profitable examples include new light fixtures, new appliances, fresh landscaping, and bathroom updating.

• Examples of the “wrong things wrong” or unprofitable improvements include a new roof, foundation repairs, new plumbing or wiring, and new windows. The reason these obviously necessary updates are unprofitable is they add less market value to the home than they cost.

4. Deduct from market value for the cost of repairs. Most sellers of houses and condos are well aware if their home needs repairs or updating to current market value standards. There are two ways for buyers to handle this.

• One is to offer a low purchase price to compensate for the obviously necessary repairs. However, such an approach often upsets the seller who doesn’t realize how much it will cost to bring their home up to neighborhood standards.

• A better approach is to offer close to current market value, based on recent sales prices of nearby comparable houses or condos, but then list and ask for credits for necessary repairs, such as a new roof, foundation repairs, landscaping, and new plumbing or wiring. This method is often more effective because the seller then realizes all the work their “fixer-upper” needs.

5. Ask the seller for affordable financing. Although home mortgage financing is easily available today, you might be able to do better in the right circumstances by asking the seller to carry back a mortgage for you. This can be especially valuable if the seller owns the home free and clear with no mortgage, you plan to immediately renovate the house to increase its market value, and you expect to refinance or sell the home after the improvements are completed.

• To illustrate, if you offer a retiree seller a 5.5 percent interest rate on a carryback mortgage, that’s better for you than is easily available at the local bank. However, be sure there is no prepayment penalty so you can refinance when you complete renovations to increase the home’s market value.

• There is no easier mortgage lender than the home seller. My experience is retirees are especially anxious to finance home sales because they usually can’t obtain such a high yield with the safety of a mortgage on their former residence if you fail to make the payments and they have to foreclose. By obtaining easy seller financing, you just increased your purchase profit even more.

If you ask the right questions, your house or condo purchase can become a profitable investment. Whether you plan to keep your home purchase a short time or for many years, look for the “right things wrong” and the extra bonus profit opportunities, such as seller carryback mortgage financing.

Source: Robert Bruss, naplesnews.com

Use these Buyer Tips, contact Barbara Chartier at 843-902-0204.

South Carolina’s coastal areas showed home and condominium sale declines in the second quarter, according to S.C. Association of Realtors:

• Grand Strands’ sales dropped 18 percent compared to last year

• Beaufort’s sales fell 16 percent

• Charleston’s sales dropped 3 percent

• Hilton Head sales plunged 44 percent

“The coastal markets’ phenomenal growth rate over the last four years was unsustainable long term,” said Nick Kremydas, chief executive officer of the association. “As a result, those markets are seeing a slight cooling period.”

Booming sales in the Upstate and Piedmont areas have kept the statewide real estate market healthy, Kremydas said.

Source: Jenny Burns, The Sun News, Myrtle Beach, SC

Myrtle Beach’s planning commission saw two oceanfront building proposals Tuesday and sent developers for each away with demands for more public improvements and other considerations.

A 200-foot, 271-unit condominium building that would rise next to the Landmark Resort Hotel on Ocean Boulevard along 15th and 16th avenues South drew a lot of public interest, planners said, primarily from homeowners who live outside the area.

The new building, on property that is currently a parking lot and the Sportsman Motor Inn, would link with the Landmark and its westerly parking garage. The proposal is to rezone the lot as an L-shaped, planned-unit development, a zoning distinction that lets developers skirt certain city rules often in exchange for public improvements.

Developers said those improvements would include widened sidewalks, handicapped beach access, streetscapes along 15th and 16th avenues South and a turnaround drop-off point at the beach end of 15th Avenue South.

Commissioners also said they were concerned about population density and parking around the property.

The commission also got an updated look at a proposed 690-unit-time-share development on Sixth Avenue South by Orlando-based Westgate LLC.
Responding to the commission’s earlier protests, the developer split one large tower into two separate towers and shuffled the heights of the buildings. Westgate also increased setbacks around the buildings and tweaked a few other things.

City planner David Peete said it often takes several rounds through planning commission and then a few rounds through City Council for a development to move past its blueprints and get off the ground.

Source: Lisa Fleisher, The Sun News, Myrtle Beach, SC

Myrtle Beach golf course Cypress Bay, originally due to close in May, will stay open through the end of the year and maybe even through the spring of 2007, according to Myrtle Beach Online.

The course was sold by its original owners to a group of local businessmen, who like so many others, have plans to redevelop the land and turn it into housing. Plans call for 1,000 housing units, to be called Cypress Commons.

The course is a popular Russell Breeden design in Little River, though its had financial problems over the years.

Source: Tim McDonald

The all-new Towers on the Grove Resort, located on 500 feet of oceanfront coastline in the Cherry Grove section of North Myrtle Beach, replaces the long-time family favorite Cherry Grove Manor.

Towers on the Grove will blend contemporary glass styling with stunning art deco flourishes in two twin towers, bringing an exciting facelift to this area of the Grand Strand. Deluxe amenities planned for the resort include indoor and outdoor pools, a tropical pool deck, a lazy river, a restaurant, lounge, fitness and media rooms.

Phase One is now pre-selling, offering purchasers an array of 11 different floor plans with exceptional pricing points. Designed in efficiency, one, two or three bedroom configurations, the condos offer either oceanfront or boulevard views. The completely appointed units feature private balconies, full kitchens, high-speed Internet access, and a designer furniture package.

Source: prnews

For more information and reservations, contact Barbara Chartier at 843-902-0204.

Centex Homes Myrtle Beach Division has unveiled five new single-family neighborhoods at Barefoot Resort & Golf - a 2,300-acre master planned community located in the heart of North Myrtle Beach.

• Sweetbriar homes begin in the $200s.

• Parkhill features 3-bedroom patio homes that are available from the $300s

• Brookstone offers 2-and 3-bedroom homes ranging from 1,398 to 1,720 square feet that are available from the $300s.

• Longbridge runs in the $400s and has 3-and 4-bedroom floor plans from 1,839 to 2,715 square feet.

• Oak Pointe includes homes beginning in the $400s with plans ranging from 1,840 to 2,721 square feet.

Source: Sun News, Myrtle Beach, SC

For more information contact Barbara Chartier at 843-902-0204.

More adults younger than 30 are entering the real estate market, and many are doing it at ages uncommon a decade ago. And buyers are getting still younger as Generation Y joins in.

In 1995, people 25 and younger bought 172,000 homes nationally… in 2005, that number jumped to 501,000. The children of the baby boom generation - approximately 75 million [nationally] born between 1982 and 1995 - that generation is just entering the years in which people buy a first home and will be a strong fundamental factor for the next decade.

Low mortgage interest rates, a healthy economy and rising employment add incentives for more young people buy to real estate. There also is fear among young adults - and their parents - that they won’t be able to afford real estate in the future. But just because more young adults are buying doesn’t mean the purchase is easy.

Young buyers are making major compromises and using creative financing to buy their first homes - including recruiting roommates or siblings, borrowing from parents, sacrificing space and living in less-desirable neighborhoods.

Source: Nicole Tsong, The Seattle Times

Myrtle Beach International Airport may be managed by a new commission that would be able to make its own decisions on many airport issues and could have oversight of a $228 million terminal project. The commission would still have to come to Horry County Council before making major decisions.

After changing oversight requirements for Myrtle Beach International Airport last year, Horry County Council has spent about a year closely scrutinizing operations at the facility.

Council members required that all decisions related to the airport be routed through a council committee or the county’s administration division head. Previously, issues related to the airport were sent to an advisory committee and then passed along to council members.

A year ago, the council said it seemed necessary to take over daily decisions in light of a massive, lagging terminal project and concerns over county business deals with companies such as the politically battered AvCraft Support Services.

The county’s plan for a new airport terminal is about a year behind schedule, and the county must pay another $6.2 million to finish the terminal design or lose the project.

There are three types of government boards in South Carolina - advisory, commission and authority - with varying levels of power.

The commission format could mean more qualified members on the board and more expertise for the terminal project, said Bill McKown, chairman of the airport advisory board.

For now, the change to a commission is still a proposal and must be approved by County Council. A vote could happen as early as Tuesday.

Source: Travis Tritten, The Sun News, Myrtle Beach, SC

Centex Homes Myrtle Beach Division is introducing Heritage Preserve, a subdivision off S.C. 90 near the Waccamaw River between Conway and Myrtle Beach.

Heritage offers single-family homes, luxury estate homes and home sites with lake and wooded views.

Amenities will include a club, pool, fitness center and observation area overlooking the neighboring Heritage Land Trust.

Prices range from low $200Ks to high $400Ks.

For more information: contact Barbara Chartier at 843-902-0204.

The Grand Strand’s relocation guide is targeting high-income households by adding a new supplement that gives developers a place to advertise new real estate projects.

The Myrtle Beach Area Chamber of Commerce found that few developers were advertising in the Grand Strand Living guide they publish because it’s only printed once a year and is distributed only to folks who request the relocation guide, said Theda Jackson, vice president of marketing for the chamber.

“The developers told us that Grand Strand Living wasn’t reaching the right audiences. So we tried to look for a vehicle that would allow us to reach those folks,” Jackson said.

That turned out to be a supplement that will be printed three times a year and included in the relocation guide, as well as inserted into newspapers in large target cities with residents who have high incomes and investment and relocation interests.

The chamber is looking at North Carolina, Georgia, Pennsylvania, New York, Virginia and Ohio as possible targets.

“With the Grand Strand trending toward more upscale housing, the Grand Strand Living supplement edition one was created to target people able to buy the area’s more expensive real estate for a primary home, secondary home or investment property,” said Pam Wright, business sales manager for the chamber.

Rising prices and builders’ focus on a wealthier, retiree buyer have caused more high-end homes to be built on the Grand Strand in the past five years.

From March 2005 to March 2006, 19 percent of the new homes sold in Horry County were over $300,000, according to Market Opportunity Research Enterprises.

The chamber will distribute 750,000 copies of the first edition to households with high assets and earnings. An additional 50,000 copies will be distributed to fulfill mail, e-mail and walk-in requests at the chamber’s visitors centers.

Source: Jenny Burns, The Sun News, Myrtle Beach, SC

To order your Relocation Guide: click Grand Strand Living Guide

RWO Acquisitions, a development company based in New York City, received zoning approval from the city of Myrtle Beach to move forward with its development, Withers Preserve at the former Myrtle Beach Air Force Base.

The new urbanism community will have 1,950 homes and 70 acres for commercial use.

That includes 450,000 square feet of retail space, 300,000 square feet of office space and three hotels. The community will be an inter-connected series of Lowcountry neighborhoods.

Source: Staff Reports, The Sun News, Myrtle Beach, SC

Withers Preserve: For more information contact Barbara Chartier at 843-902-0204