By Dave Kansas, Wall Street Journal | Real Estate

Some people think it’s a good time to buy a house. Is it?

In the past few weeks, home-sales data have perked up from very low levels. At the same time, home prices continue to fall in most parts of the country and mortgage rates, while ticking up, are at remarkably low levels.

All these data raise an intriguing question: Is now a good time to purchase a home?

It’s important to address the salient caveats. First, we are extremely unlikely to return to the boom-boom era of home investing reached earlier in this decade when prices soared 20% and more per year. Long-run historical data indicate that homes generally match the inflationary trend, rising about 3% a year.

Buy Carefully

Second, this is not the time to take aggressive action. Borrowing too much or utilizing gimmicky mortgages are what got too many people into trouble in recent years. Investing in a home, like investing in the stock market, should be approached prudently. You should be prepared to put at least 20% down and your budget should account for monthly mortgage and principle payments.

• The importance of the down payment is that it gives you an equity “buffer” in case home prices should continue to decline after your purchase, which may be the case in many communities this year.

One reason to think seriously about a home purchase is the mild revival in real-estate data. According to the National Association of Realtors, new-home sales rose 5.1% in February. The Commerce Department reported that new-home sales gained 4.7% in the same period.

• The pop in sales activity, which is coming from very low levels and remains fairly weak, is being driven in large part by falling prices. The Case-Shiller Home Price Index for January fell 19% year-over-year. The Commerce Department reported similar drops for new-home sale prices.

The fall in prices and the rise in sales activity is a good thing. It shows that buyers and sellers are starting to agree more and more often on a price. When prices start declining, sellers will hesitate, hoping that the market will rebound. This hesitation has evaporated as prices have continued to fall. The uptick in sales amid falling prices shows that the market is beginning to work once again, which is usually an early indication that a bottom in prices is starting to form.

Don’t Hunt for the Bottom

Some prospective homebuyers naturally want to know when prices will actually hit bottom. Pinpointing a bottom in home prices, however, is very difficult, akin to picking the bottom in the stock market. But data and research indicate we’re getting close.

• A recent report from Banc of America Securities-Merrill Lynch argues that the housing market could start to demonstrate modest growth and improvement later this year. This forecast relies on long-term mortgage rates continuing to decline. It also notes that a weak job market will hamper growth in housing.

• Mortgage rates are a key element to buying a home since lower rates make it cheaper to finance your home purchase. Last week, Freddie Mac 30-year mortgage rates ticked up to 4.87%. Merrill Lynch predicts that the Federal Reserve, through the purchase of long-term Treasurys and other tactics, will drive 30-year mortgage rates to 4.2% by year end.

If you believe now is a good time to buy a home and your lifestyle and budget support such a choice, there are a few strategies to consider in order to get the best price.

• Know what you want. This requires doing the requisite amount of research so you know exactly what you want and what you can afford. Once that’s done, being ready to buy quickly can help you drive a good hard bargain.

• Be ready to pounce. Cash, of course, is king. If you can write a check for a home, you can drive a very tough bargain in a world of eager sellers. Not everyone has that kind of kitty, so the next best thing is having a pre-approved mortgage. Many sellers are looking to close a deal smoothly and quickly, so having everything lined up ahead of time can strengthen your negotiating position.

• Negotiate closing costs. Having the seller handle all closing costs can knock a bit off the sale price. It’s a buyer’s market; fight for this.

• Get an inspection. And make the sale contingent on what you learn. Then renegotiate to lower the price. At the least, make sure that the seller is responsible for all inspection-related improvements.

If acquiring a home is starting to look more interesting, be careful not to confuse buying a house with investing in the real-estate market, whether as a landlord, a property speculator or a stock investor buying homebuilder stocks or real-estate investment trusts.

Real-estate investing can still be pretty dicey in the current market. There may — or may not — be money to be made. But buying a home is all about providing a place for you and your family to live. And as home prices settle at lower levels, you just might become a homeowner much more economically than anyone has in a long time.

Rates on 30-year mortgages fell recently to the lowest level on record after the Federal Reserve launched a new effort to stimulate the struggling U.S. housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85% last week, from 4.98% the previous week. This was the lowest in the history of Freddie Mac’s survey, which dates back to 1971, and was down a full percentage point from a year ago. These are truly historic times and they present a great opportunity to anyone who is thinking of buying.

If you, or someone you know, is ready to take advantage of historic low prices and historically low interest rates, please call me toll-free (1-888-494-8654) or email me your referral.

2009 is a great year to buy real estate in Myrtle Beach. Don’t let this opportunity pass you by.

Buying opportunities for first-time home buyers in Myrtle Beach have never been better. Prices and interest rates are low; there is a wide selection of homes to choose from; and Congress is giving first-time homebuyers an added incentive – an $8,000 tax credit.

Twenty-three percent of adults plan to purchase a home in the next five years, and more than half of them (53.5%) are first-time home buyers, according to a survey commissioned by Move Inc., the operator of National Association of Realtors’ Realtor.com Web site.

Despite today’s challenging market conditions, 18.1% of adults plan to buy a home this year in order to take advantage of the $8,000 tax credit.

So… are you ready to make the move? You might be, if you:

1. Are familiar with the market. If you’ve been paying attention to how much houses are listed for in the neighborhoods you’re eyeing and have a realistic view of how much a house will cost you, you’re in good shape. But if you’re dreaming about that big corner house with no clue about its asking price, you may want to spend some more time becoming familiar with the market and how much houses are going for.

2. Have the money for a down payment and closing costs. The down payment is a percentage of the value of the property. Freddie Mac says the percentage will be determined by the type of mortgage you select. Down payments usually range from 3 to 20 percent of the property value. Also, you may be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20 percent. Closing costs include points, taxes, title insurance, financing costs and items that must be prepaid or escrowed and other settlement costs. You can expect to pay between from 2 to 7 percent of the property value. Generally, buyers will receive an estimate of these costs from your lender after you apply for a mortgage.

3. Know how much you can afford. Freddie Mac says that as a general guide, your monthly mortgage payment should be less than or equal to a percentage of your income, usually about a quarter of your gross monthly income. Also, your income, debt and credit history go into determining how much you can borrow. As a general rule, your debt — credit card bills, car loans, housing expenses, alimony and child support — should not be more than about 30 to 40 percent of your gross income.

4. Know what additional expenses will come with owning a home. This includes homeowner’s insurance, utility bills, and maintenance costs — roofing, plumbing, heating and cooling.

5. Have your credit in good shape and make sure your credit report is accurate. Potential lenders will view your credit history — how much debt you’ve accrued, how many accounts you have open, whether your payments are made on time, etc. — to determine whether they’ll give you a loan. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union.

6. You haven’t made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan — or it could potentially lower the amount you’ll be approved for.

2009 is a terrific time to buy property in Myrtle Beach, especially for first-time home buyers. If you are planning to purchase a home this year, check out my free “Guide for First-Time Home Buyers.” It has all the information you need to get you started. Click here to order.

Resources: Move.com and Realty Times

Home owners in Myrtle Beach are competing with professionals - banks and developers - to attract buyers. Buyers are looking for bargains and the pros are giving them what they want. In order to stay in the game, you must offer your property at a great price. But you can beat the pros in 30 seconds by offering great value as well.

First impressions will make or break your home sale. Bargain pricing can generate buyer interest, but then it’s “show time.” Buyers want great looking homes in move-in condition. You have 30 seconds to outshine your competition… to show a buyer why your home is the best value for the money. When buyers walk in the door, it only takes them 30 seconds to decide if your home is the home for them.

Staging your home to accentuate its true value can convert showings to offers. Here are five simple things you can do to showcase your home.

1. Pack Up Early: Most people pack after their home has sold… but why not get a head start now? You’re going to have to pack anyway. Rent storage space or set aside a place in the garage. You’ll be moving soon, so this is your chance to box and label your belongings to make your move to your new home a lot easier.

2. Clean Everything: Clean floors, baseboards, ceiling fans, kitchens, exhausts, appliances, cupboards, bathrooms, tubs, showers. Clean the windows. Clean every exposed surface in the house. Clean inside and outside. Eliminate all odors. Clean houses are more appealing… buyers assume that clean houses are well cared for.

3. Eliminate Clutter: Getting rid of clutter is just as important as cleaning… in fact, they go together. You’ll have to move your clutter anyway in order to clean your exposed surfaces. Why not move them only once? If you haven’t used an item in the last month, pitch it… or pack it away. Remember, you are selling space, not your things.

4. Remove Excess Furniture: Less is more when it comes to furniture. Keep the basics and get rid of the extras. Then rearrange the remaining furniture to create more space. Try different room arrangements until the room looks spacious and open to you. Less furniture means more space… that’s what buyers are looking for.

5. Paint It: A simple, coordinated, neutral, color scheme will make your house look larger… brighter… more appealing to buyers. Why? Because buyers can move right in without having to do anything. You may be able to clean, patch and touch up your walls if you already have a neutral color scheme. However, consider re-painting rooms with bright colors and bold patterns… buyers consider these rooms as more work for them.

Beating the pros and getting your home sold quickly means competing at a professional level. Give buyers what they want - a bargain price for a like-new, model home.

For more information, click here to order my free special report, “7 Insider Secrets On Showcasing Your Home For a Successful Sale.”

SPRING IS THE PRIME SELLING SEASON IN MYRTLE BEACH. If you want to sell your home or condo, now is the time. But please be aware: the real estate market in Myrtle Beach has changed dramatically. Buyers are looking for bargains and ignoring everything else.

YOU WILL GET THE BEST POSSIBLE PRICE FOR YOUR HOME / CONDO IF YOU GIVE BUYERS WHAT THEY WANT… NOW.

Bargain Hunting: Buyers always want to get the most for their money. They always have. But now they are looking for real bargains. Why?

• Buyers are afraid that prices will go lower. They want a built-in price cushion from further market declines. Most analysts agree that prices will be lower a year from now.

• Buyers are picking only the best properties… price, location, condition. They have a lot of homes to choose from… some of them brand new builder closeouts.

• Buyers are few and far between. The lending freeze has shut out many would-be investors. Cash is king… with the exception of first-time homebuyers. But Myrtle Beach is primarily a vacation / second home market.

Bargain Pricing: Serious sellers need to stay ahead of the competition and give buyers the bargains they are looking for. Who’s your competition?

• Sellers are competing with banks and builders in today’s market place. Banks are trying to unload their foreclosures and builders are trying to unload their spec properties. And that’s where buyers are looking for bargains… and finding them.

• Time works against sellers in a declining market… prices will be lower a year from now. The quicker you sell; the better price you will get. An offer that may seem low to you today, will look great a year from now.

• Banks and builders are serious sellers; they understand this market dynamic. That’s why they are bargain pricing.

Bargain Selling: In a declining market, properties priced at or above the market are priced to sit… not sell. Why? Because the market keeps moving lower… away from the seller. Most properties on the market today are overpriced… they just sit there with little or no activity. That’s bad news for the sellers because time is their enemy.

Pricing to sell requires both fact and forecast. You need to know where prices are now, and predict where they are going.

• Research your neighborhood; find the lowest priced listings for comparable property. Watch out for unsold builder spec properties that may be off the books. The lowest priced properties in your neighborhood are your competition… generally, short sales and foreclosures.

• Determine market direction. Don’t expect the market to recover in the next year or two. Owners are becoming stressed out by the current economic chaos. We are seeing a constant stream of short sales come on the market… and most of these eventually become foreclosures. Government programs don’t help owners of vacation / second home properties. So the market trend is down for the foreseeable future.

• Price ahead of the market. If short sales, foreclosures, and builder close-outs are driving the market, then use your pricing power to attract attention, beat the competition, and get your property sold as quickly as possible.

THE QUICKER YOU SELL… THE BETTER PRICE YOU WILL GET.

CONTACT ME TODAY… I’ll show you how to use your pricing power to get your property sold at the best possible price.

Here’s a summary of my recent blogs on buying REO bank foreclosures. There are some great buys out there for those who are willing to put a little time and effort into finding the right deal. And I’ll guide you every step of the way.

Remember, when you’re successful, I’m successful.

Link to “How to Buy an REO Bank Foreclosure at a Great Price”
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2009 is the year to buy property in Myrtle beach. Don’t miss out on this great buying opportunity. CALL ME today, toll-free, at 1-888-494-8654, or CONTACT ME through my website. I’ll help you find what you’re looking for and negotiate a great price.

Buyers of REO bank foreclosures must be Qualified, Prepared, Knowledgeable and Patient.

• Qualified: Your financing is lined up; you know your price range and can access your funds quickly.
• Prepared: You know what kind of property you are looking for; you’ve narrowed your search to two or three neighborhoods and understand the differences within each neighborhood.
• Knowledgeable: You will know a great deal when you see it because you’ve researched the history of actual selling prices and are following new listings and price changes daily.

Now you need PATIENCE. My buyer [see part one] followed the market for over a year before he found what he was looking for. And when he did, he bought it in less than 10 hours.

My buyer was looking for a single family home as a rental property investment. And he was watching the REO bank foreclosures in his neighborhoods and waiting for a bank to make a dramatic price cut – below current market price – that would give him a positive cash flow and instant equity.

Why would a bank sell its property below current market price? Because they want to unload the property… just get rid of it.

With all the foreclosures on their books these days, banks want to sell them as quickly as possible. Typically, a bank will test the market just like any other seller by competitively pricing their property at, or slightly below, current market price. But if they can’t get the price they’re looking for in 30-60 days, they are often willing to make dramatic price cuts to get it off their books.

The Loss Mitigation Departments of banks are regional and are dealing with thousands of foreclosures… they’re swamped. They are trying to reduce their bank’s losses as much as possible, but they are also under pressure to clean up their books. In the end, it just gets down to deadlines and numbers for them.

In my buyer’s case: the bank had actually rejected a higher offer by another buyer before they decided to make their big price cut. There really is no way to know what banks are thinking… you just have to watch and wait patiently for the deal you are looking for.

If you have what it takes to buy an REO bank foreclosure, i.e. you are Qualified, Prepared, Knowledgeable, and Patient, then CALL ME (1-888-494-8654) – I’ll help you find what you are looking for at a great price.

The deals are out there; don’t miss out on this great buying opportunity.

Do you have what it takes to buy an REO bank foreclosure in Myrtle Beach?

Buyers of REO bank foreclosures must be Qualified, Prepared, Knowledgeable and Patient. If you have lined up your financing (Qualified) and narrowed your search to two or three neighborhoods (Prepared), the next step is to do your homework (Knowledgeable) so that you will know a great deal when you see it. [This is the third of a four part series.]

My buyer [see part one] could make a quick decision on his great deal because he knew the neighborhood, he knew the market, and he knew what it would cost to rehab the property. He had done his research well in advance… and knew a great deal when he saw it.

• KNOW THE NEIGHBORHOOD – You’ve narrowed your search to a particular neighborhood, but now you have to dig deeper. Determine which properties in the neighborhood interest you.

Answer these questions: What distinguishes one home or condo from another? Which locations are most desirable? How much are the taxes and association fees? What can you expect for net rental income? Which properties will have the highest resale value?

Tip: Compare property sizes and prices with net rental incomes. In general, you will find that smaller properties will work out better.

• KNOW THE MARKET – You know what you are looking for; now research the sales price history on these properties. At this point, you will need help.

That’s where I come in. Access to most of the pricing information you need is through a paid MLS service that is restricted to Realtors. I have research capabilities at my fingertips that are not available to you. And I can set you up to receive email alerts of price changes and new listings that fit your search criteria.

Tip: On REO bank foreclosures, you’re looking for the bank to make a major price cut. And when it comes, you’ll know about it.

• KNOW REHAB COSTS – Banks sell their properties “as is”… which means they won’t fix anything that’s wrong with the property.

If you are looking for a single-family home, a professional home inspection is a must. You need to know if you are getting into any serious problems. Your offer can be made contingent on your approval of the home inspection. Then you need to know what it will cost to make the property “rental ready?”

Condos are a little easier in that, ordinarily, you are only responsible for the interior of the unit… you depend on the property association for exterior maintenance and upkeep. Paint, carpeting and furnishings are typical condo rehab expenses.

Tip: You need to know, in advance, the typical costs of rehab. This is where experience comes in… I have a list of typical rehab costs you might run into.

You can see why buying an REO bank foreclosure is not for everyone? Your finances need to be in order; you need to know what you are looking for; and you need to do some in-depth research so that you will know a great deal when you see it.

If you are still with me and you’re thinking: “I can do that!” CALL ME (1-888-494-8654) – I can help you with the research and set up email alerts for you. I also have several home inspectors that I trust… and people who can do the needed rehab at reasonable prices.

In my next post, I’ll explain why you need Patience to buy an REO bank foreclosure.

This is a monumental piece of legislation that will directly affect the housing market. I want to share my insights on how I believe it will affect the market so that you can make informed buying and selling decisions.

Homebuyers: Part of the stimulus package gives first-time homebuyers who purchase in 2009 an $8,000 tax credit. “First-time homebuyer” is defined as someone who has not owned a home for the past three years. Combined with the fact that foreclosure filings during January decreased 10% from December 2008 and that some sales in December of 2008 rose 6.5%, we will see prices at the lower end of the price spectrum stabilize. The really great deals will likely be snapped up in the next few months and we should see a price increase in December of 2009 as those who wait will rush to buy before the $8,000 credit is gone.

This will also help clean up some of the problem loans, short sales and foreclosures that have been a drag on home prices.

Three to six months from now we will see this start to move up to a little higher price range and by the end of the year, prices will stabilize in large mid-priced homes. High-end homes will be the last to stabilize sometime in 2010.

If you are thinking about buying, now is the time. Don’t wait and end up wishing you had taken advantage of this opportunity.

Home sellers: If you are selling in the lower price ranges, you can expect to see increased activity and, if your home is reasonably priced, you will get it sold very close to that price.

If you are not at the low end of the market, and do not have to sell, my advice is to wait twelve to eighteen months, you will get a better price. If you have to sell now, price it right and get it sold now as we could still see a drop in value in the mid and high-end price ranges over the next 3 to 6 months.

If you want to talk further about the impact of this stimulus package, give me a call (toll-free: 1-888-494-8654) or drop me an email about your situation and I will give you my recommendation. Also check back here on a regular basis for updates on what is happening in our real estate market.

Do you have what it takes to buy an REO bank foreclosure in Myrtle Beach?

When word gets out about some of the great foreclosure deals buyers are finding in Myrtle Beach, folks think - “How can I get in on one of them?”

Here’s what it takes to buy an REO bank foreclosure. You must be Qualified, Prepared, Knowledgeable and Patient. If a buyer is Qualified, the next step is Preparation. [This is the second of a four part series.]

Buyers must be Prepared – Ask yourself these three simple questions.

• WHY do I want to buy property in Myrtle Beach? There are only three reasons to buy real estate: Personal Use – “I love it! Have to have it!”… Investment Income – “I want a positive cash flow.”… and Investment Appreciation – “I want long term capital gains.”

Some buyers want it all – they’re convinced it’s out there, spin their wheels, and end up frustrated… with nothing. Decide on your primary reason for buying – a family vacation home at the beach, an investment property that will pay for itself, or an investment property with future retirement in mind?

• WHAT kind of Myrtle Beach property am I looking for? In Myrtle Beach, there are essentially two types of property: single family homes and condos… and these come in all sizes, styles and price ranges.

Decide on your type (home or condo), then add your lifestyle (beach, golf, or residential), then narrow the field further by determining your price range. Add $25,000 to the maximum price you can pay. You don’t want to miss out on property that you might be able to negotiate down into your price range.

• WHERE in Myrtle Beach do I want to focus my attention? Location, location, location. The Grand Strand is 60 miles long and is easily accessible from locations 10-15 miles inland… and everyone has definite preferences.

Once you’ve narrowed down the basics – North Strand, Central Strand, South Strand or Inland – then it’s time to begin to focus your attention on specific developments / subdivisions that fit your criteria. And this requires first-hand familiarity with the various neighborhoods in Myrtle Beach.

Are you beginning to see why buying an REO bank foreclosure is not for everyone? If you are qualified, then you need to be prepared. That requires some work, but I can help you. The easiest way is to work through the why and what questions yourself and then CALL ME (1-888-494-8654) – I can help you with the where question.

After we’ve talked it through, I’ll recommend that we do a scouting tour of possible neighborhoods as soon as possible. The goal would be to focus attention on 2-3 neighborhoods until you find a great REO bank foreclosure deal.

In my next post, I’ll explain how to become Knowledgeable – so you’ll know a great deal when you see it.

Do you have what it takes to buy an REO bank foreclosure in Myrtle Beach?

These days we’re seeing a lot more REO bank foreclosures for sale in Myrtle Beach. Buyers are finding some great deals. Recently, one of my clients bought just what he was looking for – in great condition, at an amazing price. But his experience reminded me again that buying an REO bank foreclosure is not for everyone.

Here’s what it takes to buy an REO bank foreclosure. You must be Qualified, Prepared, Knowledgeable and Patient. [This is the first of a four part series.]

Buyers must be QUALIFIED – Here are three simple questions to ask yourself.

• Can I afford to buy property in Myrtle Beach? Banks require that you supply a “pre-approval” or “proof of funds” letter with your offer. Line up your finances first – even before you begin to look. Everyone’s finances took a hit in 2008. If you still have great credit or cash available, you’re able to buy.

• Is this the time to buy property in Myrtle Beach? I think folks will look back at 2009 and say, “I wish I had bought property then – when prices were low, interest rates were low, and there was a lot of property to choose from.” Do you agree? If you do, you’re ready to buy.

OK – you’ve lined up your finances and you believe 2009 is a great year to buy property in Myrtle Beach. Now it’s crunch time.

• Can I make a quick decision to buy a specific property in Myrtle Beach? Great deals don’t last long and local investors have a real advantage.

On the deal I mentioned above – we found the property at 7:00 am… did a walk-through at 9:00 am… priced out the costs of making the property “rental ready” by 12:00 noon… wrote up an offer with proof of funds by 2:00 pm… and received an accepted offer back from the bank by 4:30 pm. The entire process took less than 10 hours.

Someone else’s buyer made an offer at 9:00 am the following morning… but it was too late. We already had an accepted offer.

So what do you think… are you QUALIFIED to buy an REO bank foreclosure? If so, that’s the first step. Now you need to think about preparation, knowledge and patience. In my next posting, I’ll explain what it takes to be PREPARED.

Can’t wait to find out more? Call me at 1-888-494-8654. I’d be happy to talk you through the process… and help you find a great deal.

Savvy buyers are finding good deals in Myrtle Beach. Foreclosures and builder close-outs are further depressing prices in an already slow housing market. Careful buyers are finding motivated sellers and getting more for their money than they could a few years ago.

Here are some examples of the good deals that have already closed in 2009. I’ve included different price ranges and grouped them by Single-Family Homes and Condo / Townhomes.

• Single-Family Homes – click here.

• Condo / Townhomes – click here.

But finding these deals before they’re sold isn’t easy. That’s why knowledgeable buyers work with an experienced buyer agent. The best deals don’t last very long.

An experienced buyer agent knows what her clients are looking for. She continually scans the market searching for property that suits them. And she helps them line up their finances, in advance, so that they can act quickly when they find a good deal.

If you are looking for a good deal in Myrtle Beach, I’d be pleased to work with you as your buyer agent. Call me today, toll-free, at 1-888-494-8654, or email me at Barbara.Chartier@century21.com . I’ll help you find what you’re looking for and negotiate a great price.

Barbara

In 2008, selling prices of Grand Strand homes posted their steepest declines in at least 15 years, according to year-end stats provided by the MLS. The declines show just how much sellers have been willing to slash prices - and are evidence of bargains out there for buyers.

The Bad News: MLS stats for 2008

• Single-family home prices fell 5 percent from 2007
• Single-family home sales fell 32 percent in 2008
• Condo prices fell 23 percent from 2007
• Condo sales fell 36 percent in 2008

The Good News: Silver lining for patient buyers

The decline last year brings prices about back in line with what they were in 2005, said Tom Maeser, market analyst for the Coastal Carolinas Association of Realtors.

The number of homes for sale is also on the downswing, a good sign that supply is starting to get back in line with demand, Maeser said. The number of homes on the market fell from 13,484 at the end of 2007 to 12,801 at the end of 2008.

The price declines have been necessary to get buyers to bite and to help sell excess inventory, said Coastal Carolina University research economist Don Schunk.

His forecast calls for the housing market to start stabilizing in the second half of this year as low mortgage rates spur people to buy homes, as economic stimulus efforts from the new presidential administration take effect and as inventory gets eaten up.

“That’s not saying that 2009 is going to be a banner year by any means,” Schunk said, “but toward the end of this year, the declines should be slowing.”

Resource: Jessica Foster, The Sun Times, Myrtle Beach

“It’s an ill wind that blows nobody any good.” John Heywood, 1546

OUR CURRENT FINANCIAL CRISIS and the resulting real estate melt down has certainly been an “ill wind.” Just ask an investor who bought property in Myrtle Beach a couple of years ago. Some of them have lost all their equity and then some, and are struggling to keep up with negative cash flows as the rental market slows down over the winter months.

Some investors haven’t made it and are now in foreclosure. And that’s bad news for everyone involved, including the lenders who are trying to get these “bad loans” off their books as quickly as possible. Lenders don’t want to hold on to property for a year or more until the market stabilizes.

SO WHERE’S THE “GOOD?” Investors with cash or great credit are looking at Myrtle Beach again and finding deeply discounted property. The increase in foreclosures has driven prices to bargain levels. In today’s market, some lenders have become highly motivated sellers.

Nevertheless, buyers still need to do their homework, comparing prices and selecting the best from all the rest. Savvy investors have their financing lined up in advance, know a good deal when they see it, and are prepared to make an offer. The best deals go quickly even in this slow market.

WHEN WILL THE MYRTLE BEACH REAL ESTATE MARKET BEGIN TO RECOVER? That’s anyone’s guess, but it will take a while.

It’s a matter of supply and demand. When foreclosures and developer discounts run their course, excess supply will be reduced and the market will begin to stabilize. When lenders start relaxing their lending practices, more buyers will qualify for loans and the market will begin to stabilize.

Until then, only a few buyers will be able to take advantage of today’s foreclosure market – first time home buyers, and buyers with cash or great credit. If you think you might qualify, call me, toll free, at 1-888-494-8654. I’d be happy to help you find a real deal in this market.

Resource: Jessica Foster, The Sun News, Myrtle Beach

FORECLOSURES ARE HAVING A SIGNIFICANT IMPACT on home sales and prices in Myrtle Beach. While “bank owned” homes represent only 2.6% of the current 4800 homes listed for sale, they accounted for nearly 10% of the homes actually sold in September. Some of these foreclosures sold at the lowest prices for comparable properties in recent memory. And there may be more to come.

SHORT SALES OFTEN BECOME FORECLOSURES… and they are appearing more frequently in Myrtle Beach. Short sales that don’t sell eventually become foreclosures. [See my blog: Real Estate Short Sales: Transactions of Last Resort for more information on short sales.]

FORECLOSURES ARE BAD NEWS FOR HOME OWNERS. Foreclosures cause families major stress and hardship, ruin credit ratings, and make financial recovery a long and difficult process. And foreclosures are bad news for the neighbors. They can artificially depress real estate sales and prices of entire neighborhoods.

When will all of this end? Not until most of the foreclosure and short sale inventory is sold. Home prices won’t begin to stabilize until these “bank owned”, or “bank controlled”, properties are finally off the market. And that won’t happen until, at least, the 2nd quarter of 2009. That’s the bad news.

THE GOOD NEWS IS THAT FORECLOSURES PROVIDE GREAT BUYING OPPORTUNITIES for savvy investors… but they won’t last forever. Of the 4800 residential properties currently listed for sale, 2.6% translates into only 125 actual residential foreclosures on the entire Grand Strand. Some of these are bargains, some are not.

WILL BUYING A FORECLOSURE WORK FOR YOU? Here are some things to consider:
• What are you looking for? What are your criteria? If you don’t know what you’re looking for, you won’t recognize it when you see it.
• How will you pay for it? Banks require that “pre-approval” letters, or “proof-of-funds” letters be submitted with all offers.
• How will you inspect the property? Bank properties are sold “as is.” That means that the bank won’t fix anything. Caveat emptor – let the buyer beware.
• Are you prepared to make an offer? Remember, you are not the only person looking for foreclosures in Myrtle Beach. The real deals don’t last long.
• How will you find available foreclosure properties that meet your criteria? That’s where I can help you “separate the wheat from the chaff” and alert you as new foreclosures come on the market.

A WORD TO THE WISE: You make your money in real estate when you buy a property. Savvy investors buy properties at depressed prices… when no one else wants them. Buying a foreclosure is one way to do that.

FOR MORE INFORMATION on buying foreclosures in Myrtle Beach, call me toll-free at 1-888-494-8654, Ext 1, or email me at Barbara.Chartier@Century21.com. I’d be happy to help you.