I am happy to announce my move to Grande Dunes Properties, one of the top agencies in town and the top agency for highest average sales price on properties sold.  While my role will be as Broker-in-charge, I will continue serving clients all across the Grand Strand when looking to sell their property.  My website, email address and phone numbers all remain the same.  Contact me anytime you have real estate questions  or would like more information on Grande Dunes Properties.

5 Things to do right after your closing

If you just bought a new property, you’re probably still celebrating and feeling the sense of pride and accomplishment that comes with home owners p. You’re shopping for furniture, drawing up plans for renovations … but wait! There are some important tasks to cross off your list before you
get to the fun stuff.    
 1. Change the locks: A lot of people came in possession of your keys during the home sale process, whether it was on the market for a year or a day. Protect yourself by changing all the locks, just in case a set of keys fell into the wrong hands.
 2. Make copies: It’s good to have copies of all your closing documents, if only for reference. But in the worst case, you’ll be thankful you have your own copies if something goes wrong.
 3. Make sure you get your mail: The post office won’t deliver your mail if the mailbox doesn’t have a name, and it’ll be difficult to sign for packages if UPS can’t get to your front door. If you’re in a multi-unit building, make sure to put your name on your mailbox and verify that the buzzer or call box is working.
 4. Meet your neighbors: It’s not just about being cordial. It’s good to exchange contact info with your neighbors in case there’s a problem in the building or someone is being noisy.
 5. Prepare for emergencies: Store the contact info for insurance agents and services like plumbers and locksmiths in your phone. You don’t want to waste time searching the internet when you’re locked out on a winter night or your home suffers fire damage.

Whether you've just closed on a first home, an investment property or a second home these tips should guide you well.  For more information please contact us anytime at ben@benguyton.com or visit www.benguyton.com

What is the seasonality of Real Estate on the Grand Strand?

Market update for January

The Graphs below should tell you a story of a consistent market along the Grand Strand.  The Closed properties, in both segments, had a very flat final 5 months of 2014.  As you see, the start of 2015 didn't quite come in like a lion as many predicted.  The fall off in sales volume is consistent here with the national stats as existing home sales declined 4.9% in January.  The better news is that the price that properties are selling for has continued on a flat projection even with the selling volume decline.  The Average selling price of Condos & Homes along the Grand Strand has not varied by much over the past 2-3 years.  There has been some increase in single family pricing due to the high percent of New Homes selling over existing homes on the market.  New Homes on average sell for about 3% - 5% more than a similar home that is existing.  The most significant improvement in the real estate market over the past year has been the decline of Distressed properties available.  Right now there are 4300 single family homes on the market with only 191 of them in a distress state - less than 1%.  For condos and townhomes the number is equally low with 3386 available and only 99 distressed.  The Foreclosure & Short Sale impact on value is behind us now on the Grand Strand.  The reduction of these Foreclosures has aided in the improvement of the Median pricing, especially for homes.  

The good news is Interest Rates remain very attractive, local lenders have great programs for properties here including condo-tel designated villas, and the selection of great properties keeps a high level of qualified Buyers in the market.  

The market is a good market for both sides of a transaction especially if you have successfully moved past 2006 & 2007 as being your benchmark of a good market.  In the world of Graphs if you were to track pricing here for the last 15-20 years the average pricing is currently the same as the Fall of 2003.  Bear in mind that pricing has been about the same since the Spring of 2012 when it stopped going down.

The reality is we are in a robust market with good demand and equally good supply.  The balance in the market, in addition to, great interest rates and a steady stream of transplants leaving the Northeastern US for warmer weather, will keep our market stable and consistent through the next several years.  We should continue to see New Construction of single family homes help support pricing in this segment, but Condo pricing won't have anything to help pull it up as New Construction in this segment remains years away.

If you enjoy detailed market information and would like to read some of the data that I consume daily just send me an email with the request.  We want you to be as informed about the market where you own property as you are about the balance in your 401k.  Whether you are looking to buy or sell a property soon or not for a very long time spending a few minutes a month to be better informed certainly is worth the investment.

Have a Wonderful Day!

ben@benguyton.com

Is it aggressive or UNethical?

In my line of work I have the opportunity to speak with a lot of property owners each day.  During the conversations I will typically hear about how many real estate agents have called and it seems a little overwhelming to them.  If a property has been on the market and it failed to sell the information is sent out to a multitude of agents in the market that have an interest in helping get it sold, hence the calls.

The problem I keep coming up against is the difference between being aggressive, as an agent must be in the market, or being unethical.  What is the difference you ask?  There is a huge difference -

As a Realtor in the real estate field we are under a code of ethics sworn by our membership into the National Association of Realtors.  There is very specific language in the code the prohibits any Realtor from contacting you while you are a CLIENT of another real estate agent.  This means that if your home is listed, under a listing agreement, with one real estate agent any other real estate agent cannot contact you to discuss listing your property.  As the owner of the property you obviously have the right to speak with whomever you want as ling as you make the call to the agent.  The reason Sellers receive so many calls in the days after a property goes off the market is because the agreement is over and the Seller is no longer a CLIENT of the agent.  Other agents now know that the Seller has an interest in selling and therefore makes the call.

The issue is the calls you receive BEFORE your listing expires.  These are the real estate agents that choose not to abide by the code of ethics and try to circumvent a relationship you have established with your current Realtor.

Beware of confusing aggression with an unethical behavior.  The agent that calls to talk with you about your listing when it is still listing should be the last person you would want to trust your property with to get it sold.

I would encourage you to reach out to the Coastal Carolina Association of Realtors to file a complaint if you receive a direct call from any agent when your property is listed and they continue to talk about your listing with you after you inform them that it is currently listed.

For the best process in identifying the best agents out there shoot me an email and I will gladly share a proven strategy you should use to eliminate the rest and pick from the best.

SOLD in 30 days or less!

Looking over the market information today one interesting number jumped out at me, especially given the fact that we are in the Holiday Season.  234.  That is the number of homes and condos that came on the market to sell on or after November 1st that are already under contract!  Of the 234 properties only 31 of them were distressed properties.  If you remove the Distressed properties that means that almost 7 properties of the 30 that sell everyday sell within 30 days of hitting the market.

203 property sellers that are not desperate to sell, but are motivated to price their properties correclty for the market will be celebrating the end of the year without another mortgage payment, or HOA payment or taxes for 2015!

It proves that when a property comes to market and is priced correctly it doesn't matter what month it is or what the temperature is outside - it will sell.

If you have been on the market for a long time take a god look at the ONLY three reasons properties don't sell and evaluate yours -  Price, Condition or exposure.  Something isn't working and needs to be changed.

Our market doesn't stop in November and December, so don't allow this to be an excuse for you or the agent you are working with.

If you would enjoy seeing any of the market information please let me know and I'll drop it in your inbox without question.

Thanks for reading!

Is Waiting For Spring Your Best Strategy To Sell?

This is an age-old question that continues to be asked even in the 21st Century.  I believe this question must have started back in the 1950's (or before) when potential buyer's had to drive around to see every property and they didn't want to do so when the weather was cold.  I have heard the question enough that it finally caused me to do the research to see if it is still better to wait until spring like it was a few decades ago.  The market facts for the Grand Strand show two very interesting things; First the spring quarter (1st quarter) is the slowest period for sales in our market.  Second, the difference between the worst quarter and the best quarter is almost insignificant.  When you look at the total number of properties sold broken down over the four quarters we see that our area is very consistent.  Probably most areas are now, unless you have to contend with 4-5 feet of snow on the ground.  I beolieve there are a couple good reasons for this and the best one is that the Grand Strand has a large enough population now that it isn't so seasonal anymore (have you been on Hwy 17 lately since September?).  We have a large enough buyer pool to support year-round real estate sales.  Sure, the market is still seasonal for bathing suits, restaurants and gold courses, but not real estate.  The second reason is due to the advancement in technology.  Shopping for real estate starts on a couch somewhere and grows into a visit to the property.  If a potential Buyer is sitting in Toms River, NJ thinking of buying in Myrtle Beach and sees a property of interest they won't wait until beach weather to come see it.  

So, is it better to wait?  Waiting or moving forward to sell a property should be decided by your desire to sell, financial information and the other properties you'll compete against - but not the weather.

If you would like to see the quarterly report for selling volume email us at info@benguyton.com with Quarterly Report in your subject line.

What you should demand from any real estate agent you consider

Are you thinking of selling your house? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant.

You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one.

Here are the top 5 demands to make of your Real Estate Agent when selling your house:

1. Tell the truth about the price

Too many agents just take the listing at any price and then try to the ‘work the seller’ for a price correction later. Demand that the agent prove to you that they have a belief in the price they are suggesting. Make them show you their plan to sell the house at that price – TWICE! Every house in today’s market must be sold two times – first to a buyer and then to the bank.

Every house in today’s market must be sold twice: 1st to the buyer, then to the bank.

The second sale may be more difficult than the first. The residential appraisal process has gotten tougher. A recent survey showed that there was a challenge with the appraisal on 24% of all residential real estate transactions. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing.

2. Understand the timetable with which your family is dealing

You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.

This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. You agent cannot pick the exact date of your move, but they should exert any influence they can, to make it work.

3. Remove as many of the challenges as possible

It is imperative that your agent knows how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.

Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them and their family  (commission, length, etc.), don’t expect them to turn into Super hero when they are negotiating for you and your family with your buyer.

4. Help with the relocation

If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.

5. Get the house SOLD!

There is a reason you are putting yourself and your family through the process of moving.

You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.

Single Family Home Sales up 30% in 2014. Is it really? Read on to truly understand what is happening in the market.

We all yearn for good news and the real estate market is no different.  After a 5 years slide to the bottom of pricing we all started getting really excited in 2012 when the reports stated that prices had "bottomed out".  As we look back a couple years now to 2012 we see that those reports were true; prices did bottom in 2012, then they got stuck there!  Sure, there has been a few bright sub-markets that have seen anywhere from 2% - 4% appreciation over the last couple years, but most areas along the Grand Strand are the same prices as the spring of 2012.  Another absolute bright spot for the single family market here has been demand.  Demand jumped up last year from a pretty slow 2011 & 2012, Then 2014 came in like a lion! Looking at the comparison of number quarter to quarter the selling pace has increased a whopping 30% this year in single family homes.  That alone is great news, whether you are a Buyer or Seller, and usually enough information for us to start posting the news on every social site available...but let's dig a little deeper.  You see, with the increase in demand last year and the slight increase in prices it was enough to send the builders in our market into a frenzy.  You can see the trusses flying in a lot of neighborhoods around the beach.  This observation was enough to cause a more in depth look at the demand side of our market.  What I found, after eliminating the sold homes that are new, or never lived in, is that for existing homes along the Grand Strand the market has improved exactly 3%.  Not 30%.  There has been a 27% increase in New Home Sales in 2014 over 2013.  What does this mean to you if you are a Buyer or Seller of real estate right now?  As a Buyer it means you better get your act in gear and find your motivation to buy the house you want.  The New Home market is just now heating up and the builders are willing to do things to get you to buy that they won't do next year.  It also means that when you look at the market median pricing that we should see small increases as the next 12 months goes on.  While this can be an unimportant number, the Builders will use it to justify their pricing and reduced incentives.  These figures will also drive the existing home market causing many sellers to ask too much for their homes and remain fixed on that price, thereby reducing the selection of correctly priced homes available.  

If you are a home seller right now - beware.  There is a new competitor in town.  The last 5 years your competition has been distressed homes for sale.  Today, as I write this there are 3203 homes on the market and 216 of them are distressed.  They don't effect your pricing anymore.  In the past a Buyer may be willing to pay more for your home because of condition over a foreclosure.  Today, your competition is NEW.  Shiny, bright, pick-what-I-want, NEW.  Your competition is more fierce now.  As an existing home seller you need to know the truth about the market and understand what you are competing against.  Sure, not all Buyers want New and not all New Homes are in desirable areas.  Many builders are having to build under "value engineering" strategy in order to make a profit, so you lose some of the bells and whistles.  I encourage you to dig deeper than the surface of information you typically receive about the market to be fully informed on how to price your home.  Don;t be misled to believe the housing market is up 30%, because it is not.  The market for your type of house is up 3%.  Three percent higher demand against an 8.5 month supply of homes doesn't typically make headlines.  

Let's be clear.  Factoring in all areas and all categories of the market along the Grand Strand we have seen improved demand and that is great news.  Single family homes sales are outpacing condo sales by a wide margin and mainly due to the New stuff.  There is less than 3% New Condo sales volume here right now, so condo owners aren't competing with New...yet.  

I hope you've found this information helpful and if it raised a few questions let me hear about it.  If I'm not meeting with you about your property, or showing your property to a Buyer my head is usually buried in the figures.

Pretty Real Estate Ads Don't Make Buyer's Dumber

I came across an interesting article recently that was written by a respected organization followed by thousands of consumers and real estate agents that caught my attention.  As I read the article it seemed to have been written from the thoughts in my head over the last 7 years and I was happy to see someone put it out there.  The basis of the article was that running a lot of ads in magazines or newspapers for a property will not cause a real estate Buyer to abandon logic and market research to buy a property.  In fact, the article stated, as I agree, that advertising real estate in today's world is a waste.  In many ways, the real estate industry is a mixed bag of being stuck in the past and rushing to the "future" at the same time.  In the past, there was no consumer sites that were syndicated from local Multiple Listing Services.  In the past, the only way to know about what was actually available for sale was a newspaper ad, a yard sign, or maybe a flyer mailed to you, or even a direct phone call.  The ease by which all Buyer's find properties today wasn't around a couple decades ago.  From the main sites such as Zillow, Realtor.com and Trulia to the secondary sites like agent IDX sites with property triggers and google alerts there are hundreds of ways that the buying consumer searches for real estate today other than the way they had to 20+ years ago.  When the MLS became a web-based application it started a different way for agents to work.  When a property is now listed in the MLS it is instantly broadcast to the entire agent population of our association, which is 2700 agents!  In addition to the initial notice of a new listing, all consumer sites, agent sites and alerts have the ability to set triggers to email a Buyer of when a property that matches their criteria hits the market.  There is generally no doubt that a property is being seen, or can be seen when listed.  The future that so many agents get caught up in is the "Social Media" trend that is sweeping across our industry.  Could buying a home on Facebook be the wave of the future?  Probably not, but it certainly won't be the trend for a long, long, long, long time if ever, so why waste time here?

So why isn't your property selling?

Look at your price -
You may think there simply are no buyer's in the market.  That would be untrue.  In August 2007, widely considered one of the best markets in history, there were 30 properties per day that closed.  In August 2011, widely considered one of the slowest markets on the Grand Strand, there were 26 properties per day that closed.  4 properties per day difference between the best and worst markets seems crazy, but it is true.  Buyer's are in the market buying everyday, no matter the market.  Look at it this way, would someone buy your property for $150.00?  Would they buy it for $2,000.00?  How about $10,000.00?  Of course they would and that proves the point.  Every property has a price that will cause it to sell.  No exception.  You have to decide if you are willing to accept what the current market value is for your property.  That is a decision that only you can make, but your decision doesn't make the market.  The market is the exact range for which a Buyer is willing to Buy and a Seller is willing to sell a property, product, or gallon of gas...and not a penny more.  Don't be fooled into thinking that your year-old air conditioner that cost you $4,500.00 to install adds $10,000.00 to the value of your property over the others that have SOLD.  Does this mean that you can just liquidate a property without the help of a real estate agent?  It is an option, for sure, but not one that has a high success rate.  The process of getting your property sold absolutely requires a strong professional that is willing to guide you to market, or guide you away from the market.  When you look at market statistics where your property is located there isn't a huge curve for interpretation.  What you see and what a Buyer sees, is what every agent should also see for value.  The right, well-informed agent won't bend on their estimation of value, but will be able to exhibit to you why it is the price and exactly what they will do to expose the home and sell it.  If your price doesn't match with the market, don't put it on the market, period.  There are already too many sellers searching for that ONE, Dumb Buyer that will abandon market facts, fall in love with their property instantly and pay cash so an appraiser won't come look at it.  He or she may be out there, but boy do they have a big selection of overprice properties to consider.

A recent NAR survey revealed that the NUMBER ONE benefit a Seller wants from their agent is assistance in setting a competitive price.  It is truly one of, if not the most important things an agent can do for you as a seller.  Remember, big, bright and beautiful ads don't cause Buyer's to become dumber.  Get a Great agent, price your property correctly and don;t believe advertising more will create a group of Buyers that don't understand value!

Besides, when was the last time you paid $10.00 for a gallon of milk because of the "Got Milk" ad?

Think about it -

Click HERE for a great Market Report delivered directly to your inbox!

The negative impact of sharing your thoughts...

Do you believe that what you say about your community, neighborhood, home or neighbor can impact the value of your property?  Allow this factual case-in-point -

Recently we received two offers on a property and ultimately decided on one with the other becoming a back-up contract.  During the day or two after the contract was verbally accepted the Buyers returned to the property, excited and ready to take some measurements.  During their visit they encountered a couple of homeowners and a renter that all lived in the community.  As would be normal, they struck up a conversation and asked questions about their experience in the community.  Based entirely on those conversations the Buyer's excitement turned to remorse and they pulled the contract.  Fortunately, there was a backup contract on the property, but at a 5% less price than the first contract.

Now, obviously this property selling for 5% less than a previous accepted contract means this specific seller received less for their property, but doesn't their value effect yours if you live in the same community?  Certainly it does.

It seems to be our nature to vent and enthusiastically share the negative things that cause us to dislike something; in this case a real estate community.  I do not propose to hide things or paint a glamorous picture in a situation that doesn't deserve it, but if there was nothing good to share why do you live there?

Understand that when you are asked about a community people are looking for validation of their feelings they already have for the community, they aren't just out seeking to learn of your bad experience.  I would imagine that in every single neighborhood in our great country the owners there, if they look hard enough, would find something they would change or dislike.  Does that have to be the very first, and sometimes only, thing you share?

I encourage you to think through your advice to someone asking about the very place you invested your money.  Only sharing the "horrible" things or your take on what the builder "should have done" is taking money out of your pocket and only makes your decision to buy there look pretty bad.  Find the good in your community or call me and I'll find a buyer for your property that will appreciate the good things the community offers.  Move on!

Enjoy your day!

Market Leader - BY FAR!

Numbers Never Lie!

Here is a very interesting record that I thought was worthwhile sharing -

Over the last 20 year period The Hoffman Group has out performed every Real Estate Agency in the Myrtle Beach market by a huge margin.

The Facts of the market show over $709,000,000.00 in more sales volume than the number two agency in town.  Roughly, $2.8 Billion in real estate sales v. $2.1 Billion by the distant #2 agency.

The total number of properties sold is also a landslide difference -

The Hoffman Group has outsold all other agencies during the period of 1994 - 2014 (April) by a minimum of 3,650 total properties.  

Based on the annual selling rate of the top agencies in town - If The Hoffman Group stopped selling today it would take the number two agency 8 years to catch up!

If your looking for Real Estate guidance why wouldn't you choose the Market Leader?

2013 appeared to be an amazing year for the Real Estate market nationally, but how did it fare where your property is located?  You've heard that Real Estate is Hyper-local and that proved to be very true along the Grand Strand in 2013.

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Welcome to 2014; the year of the Amazing Real Estate market, right?  If you are a believer that past performance is an indication of future results you are taking the 2013 results and increasing them for this year, right?  Well, I have the good fortune to speak with dozens of people daily that have learned a lesson in Real Estate over the past 5 years and most are not on the bandwagon.  Before we look ahead to what may be in 2014, let's look back to 2013 and see how it fared against the previous year of 2012.  We have to see where we have come from, annualized, to see where we may go this year.  In its entirety, 2013 did prove to be a good year for housing.  Selling volume and sales prices were broadly higher in 2013 while inventory levels and days on market were lower.  The Grand Strand's inventory started the year with 9.5 month supply of homes and 10.5 month supply of condos (including Town homes) and ended the year down 15.7% & 5.6% respectively.  The tightening of the supply side aided in homes that sold getting slightly better selling prices with homes up 5.5% and condos up 2.5% for the year.  Been a while since any increase in pricing has been discussed, right?  Good News!  As for the demand side; single family homes had a whopping 19.2 annual increase and condos saw a 5.4% increase!  Remember these numbers.  The amount of time it took to get a property sold decreased slightly over the year with homes being down 6 days and condos down 9 days.  In review, the market had good positive numbers for the year along the Grand Strand with a gradual. slow climb out of the low levels it reached and has remained since 2010.  How can you use this information to look ahead?  Well, there are a few important numbers I believe can give us a general idea of what may happen.  As with any market you need to look at the supply vs.demand and the outcome.  Take a look at the previous numbers of single family home demand - UP 19.2% from the previous year, which effected pricing by 5.5%.  Would it be safe to think that another 19% increase would net us another 5.5% increase?  Sure, but there are other factors too; mainly the supply.  The Supply of homes did continue to decrease throughout 2013 and the decrease had a positive effect on pricing too.  I don't believe it will be the same in 2014.  There are two important things happening in the market right now that will effect supply in 2014; First, builders are building again.  Ride through any of the neighborhoods that have sat quiet that last few years and you'll see it happening.  The trucks are back and the cranes are flying trusses.  New Home construction will be a player in the supply side of the market this year.  Second, the holders-on are moving forward now.  The homeowners that haven't been able to swallow the market pricing over the past few years are going on the market now.  Many of these sellers are priced way out of the market, but they are on the market.  Some never left!  I actually came across a listing the other day that had been on the market for over 2,000 days!  It is an injustice!  Anyway, these homeowners will supply the market with homes at least for the first part of the year in hopes that the market has come up to meet their selling price.  In many cases, it won't.  There are also two important things that will happen in mortgage lending that will impact home sales in 2014.  First, rates will be higher.  Many estimate rates to jump to 5.5% range in the first quarter.  While it is still an amazing rate the threshold has been set and most Buyer's will be disappointed that 4.5% is not available any longer.  Others that can still afford to buy will hold back for a few months hoping for a rate decline before coming back in the market.  The second thing is the QM Rule.  The Qualified Mortgage rule is part of the Dodd-Frank act and will eliminate more Buyer's from qualifying for a mortgage.  There are industry-wide restrictions that cannot be broken by lenders in an effort to reduce high-risk loans.  This is another of the safety nets put into place after the real estate meltdown that will prevent 2006/2007 real estate markets from ever happening again.

Looking into the future (and making some assumptions), I see a market very similar to last year ahead of us.  I believe both single family homes and condos will see low single digit appreciation with higher than expected demand.  We will continue to see pockets of distressed (primarily Foreclosure) properties in the market, but the saturation levels should remain below 8% overall.  Short Sales have simply become so difficult for approval due to lender valuation many sellers aren't even trying any longer.  I do believe interest rates will rise, but our Buyers along the Grand Strand are generally smart to understand the small impact 1% can make.  Investors will remain in the market, but won't be the driving force this segment was in 2012 or 2013.  Certain sub-markets will see very high demand and the great properties in these markets will get multiple offers before selling, but only at what the market will bear.  Many Buyer's still know there is selection out there and won't get caught up in fighting over a market price.  The balance of pricing will be somewhat controlled by New Home supply, at least in single family homes.  There won't be any volume in condo New Construction until 2015 or 2016.  

I am very excited about the market ahead for both Buyer's and Seller's.  We won't be back in a market that sees 20% appreciation in a year, but given where we've been I think 3% - 5% appreciation is something to get thrilled about!

If you would like a full 13 page detail of the market in review emailed to you just let me know.  Email me at ben@benguyton.com with 2013 Market Report in the subject line.

I look forward to our next conversation!

Your Closing is today...How do you feel?

You have invested years planning, hoping and preparing for the day you close on this property.  You've spent months and months searching for it and weeks waiting to make this home your own.
Today you're finally closing on what will be one of your largest purchases ever and the place where you spend your life creating memories.

How do you feel about the journey?

Too many times the joy of homeownership is lost as we approach closing because of a small detail.  We focus on the one item that wasn't agreed on the inspection report, or that we paid all of our closing costs when the seller should have paid something....  In some cases it could be the experience you had with your Realtor.

There is absolutely nothing that should get in the way of your closing day being filled with JOY.

Being able to guide a homebuyer through the many steps of buying and closing on a home requires processes, attention to detail and anticipation.  Many of the mundane steps required to get real estate closed can be handled through proven processes and checklists, but that doesn't represent everything needed for a great experience.  The emotional journey a homebuyer takes cannot be "processed" and requires great attention to detail.  The relationship established through effective guidance should allow your real estate professional to anticipate your needs and keep the bumpy road smooth for you with you never feeling the bumps.  Great real estate closing don't happen by accident; they are planned and all the actions needed are completed only involving you where needed.

The best closings happen without a hitch and allow you to look forward to the day, enjoy the experience and continue your upward emotional journey into the months after you move in.

If your on this journey now or expect to start the journey in the future make sure to discuss your expectation with your Realtor.  When it comes to moving day and you reflect back on how you arrived your memory should turn your frown upside down!

Make it a great day!

Is a SELLERS Market Charging back?

 

There is a very distinct difference today in the real estate market for what a Seller believes and what a Buyer believes.  The "facts" the home seller believes is that the real estate market has rebounded and is on the fast track to return to the pricing highs of 2006 & 2007.  These facts are based on the continued pounding of this information into our heads by the national news media.

The "facts" that the Buyer believes show that the real estate market is about to implode again and the recent 1% jump in interest rates will impact pricing and things will start to decrease again.  There is still an abundance of properties on the market for them to choose from and they have an expectation of 10% - 15% off the asking price of any property offered.

What do you believe?  Why do you believe what you believe?  Is your education of the current market derived by newspaper headlines, or do you follow the market, research the numbers monthly and use all available data to help you understand the market at a local level?  Opinions generated without proper research can cost you money and time, so don't be stubborn because you want to believe...

The real estate market in any area of the world is determined by the properties in that market that are actually selling.  It is not determine by what a single Buyer or Seller Wants to be taking place.  The market is what it is and the only decision you would normally need to make is if you can participate in it.

The most recent facts from properties in our market show a flat market, in general.  My opinion is that Flat is actually a good thing right now based on where we have come from.  Last year we were happy that prices were only Decreasing around 2% - 4% annually, so for 2013 flat is an improvement.  Pricing is always the central question when it comes to real estate, but the true drivers are obviously Supply of properties on the market and the demand for those properties.  The demand for single family homes in our market is up 16% from the same period (Jan-June) in 2012.  16% more properties have sold this year and there are 1% fewer homes on the market to generate that increase.  Supply and demand working together have brought the Average selling price of homes up 4% this year...but that is not entirely true.  The larger factor is that all Distressed (foreclosure & Short sale) properties is down by 6%.  Fewer properties priced low will improve the Median selling price more so than fewer overall properties available, or more selling.

Condo facts show that demand is up 5% and supply is Down 11% which has had ZERO effect on pricing.  The average price is the same for the first six months of 2013 as it was in 2012.  All of that along with Distressed condo sale being down 24%!  Wow.  Let me say it again...Condo prices have not moved up at all market-wide this year when compared to last year.  This is true for the Myrtle Beach market.

Land supply still puts us with enough land to last for over 3 years based on the demand, so an extreme Buyer's market remains in effect.

When you remove Land from the equation and divide the number of properties selling in a month into the number available we arrive at a 8 - 10 month supply of properties today.  A balanced selling environment (not a Buyers market or a Seller's market) happens when the supply is around 6 - 8 month supply.

In conclusion, our market is heading in a very good direction.  A healthy direction.  As has been predicted by real estate experts for over 18 months, we are in a long, slow, steady period for pricing.  Flat pricing is expected through 2014 with very low single digit increases to begin in a year to 18 months.  If a "Bottom" is still being discussed then it is past us.  It is in our history now mainly due to affordability related to mortgage rates.  Cash buyer's still have an advantage here. 

Seller's shouldn't expect improved pricing which keeps them from selling if they want or need to.  Buyer's should understand the market to know that demand has eliminated most seller's from considering offers of 10% or more off a fair asking price.  If you want to buy it you better get it before someone else does.  Just ask three of our clients that experienced this recently!

Make it a great day!

Ben

WHY ISN'T MY HOME SELLING?

Here is a list of 8 reasons that may be preventing your property from selling.

#1. The Price isn't right for the market.

             The real estate market is fluid and experiences ups and downs with prices changing due to supply                

             demand.  Generally there isn't significant changes in pricing, but could you catch a $500. to $1,000 

             swing in pricing by staying on top of things?  Yes.  Whether selling or buying you have to watch

             not only what has sold recently, but what other similar properties are available that compete with 

             yours or the one you want.  The supply impacts pricing, just as past sales do.  Also, if your selling

             don't price it high and drift it down.  Price it right for the market and expect to receive offers in

             the first 14 - 21 days.  If you hit the market and get no showings or get showings and no offers,

             you've missed the mark.  Plan on staying on the market a while or make the change right away.

#2   Placing a sign and putting on MLS isn't anywhere near enough.

             Today's market demands an aggressive approach to getting the home sold.  In addition to all

             manner of normal marketing, social media and consumer sites, the property must be Featured

             so it stands out and the agent has to proactively push the property out to Buyer's and other agents.

             Be sure the agent you select is aggressive in nature and not passive.

#3   The Listing has to Pop!

             It starts with great photos and continues into a well planned virtual tour.  Between 90% - 97%

             of potential Buyer's will see your property on their computers or smart phones first.  If it doesn't

             Catch their eye on the screen you can forget them ever crossing the threshold.  A professional

             camera with EXTRA lighting is a must!

#4  Buyer's can't see the property.

             Buyer's shop for property at all hours of the day.  I receive the highest number of emailed leads

             at night after 9PM.  They are also out looking on weekends, after work and during your dinnertime.

             If your on the market you have to be open to showings at all times.  You never know which showing

             will be the next owner of your home.  If you own a rental property you have to do your best to have 

              it ready to show between check in and checkout or make sure the renter knows it is on the market.

#5  Your timing isn't right.

             Monitor the market to make sure you aren't hitting the market when there is an overabundance of

            other homes on the market on your street.  If you're forced to sell then you have no choice and you

             can't control what happens after your on the market, but if there are many like yours available then 

             make sure yours is the best.

#6  The house has a stigma or isn't a great as it should be -

             Is your home cluttered or dusty or in need of pressure washing?  Do you have too many counter top

             appliances, or the grass is too high?  Take a few steps away and put on an unbiased Buyer's cap;

             Take a truthful, honest look at your home and compare it against the similar ones in your area to see

              if you would select your house above the others....if you had to do it all over again.

#7  Your too detached from the process.

            There is no doubt that when you hire an agent that you expect them to take care of things and the 

            good ones do.  It is also true that the more engaged a seller is in the process the better the odds

            of getting the property sold.  Two-way communication and having an open mind are essential to

            to a successful conclusion.  Get to know your agent and understand the way they sell, at least to

            the point that you trust them.  Understanding each other and listening to your agents guidance is

            important.

#8  Your may have chosen the wrong agent.

            In our local market there are over 2600 licensed real estate agents.  To date, less than half of them

            have sold a property this year (all the way into June). The number of sales an average agent makes 

            in a year is 4.  933 agents have sold 4 properties are LESS this year.  You'll have to get into the top 

            40 agents in the market for sale performance of 5 sales per month in our market.  Make sure you

            get the stats from your agent on what they've sold and what they have listed this year.  Activity

            breeds activity and the top 10% of working agents in this town will always have time to talk with 

            you.

Consider this food-for-thought and use it as one of the sources you have to better position you in accomplishing your goals.  Your home is probably your most important asset, so do your homework to make sure the relationship you begin is the right one.  ben@benguyton.com

Is 4% the new 3.5% for mortgage rates?

Mortgage interest rates have remained at historical lows for a long time now.  Sure, they have fluctuated between 3% and 3.875% for over a year, but the 4% threshold has been reached and it may not come back below it again.  The problem with low, low rates is that when the new lowest rate is seen it then becomes the benchmark that all rates are judged against.  Let's face it 4%, 5% for a mortgage are great rates, but it does reduce your buying power.

Rising rates either eliminate your from being able to buy, reduces your ability to cash-flow and investment property, or reduces the size of the home you can purchase.

Rates have now been over 4% for over a week now and seem to be stable.  There is an absolute here; We can't all wish for a better overall economy and expect mortgage rates to stay low.

When are you going to make the decision to buy?

Real estate prices have remained flat all year and demand for properties has remained high.  If the current market continues into next year we will see segments of the market in Myrtle Beach metro start to increase.  Today, it costs you more to buy a property (the same property) as it did last month because of rates.

Could the new low for mortgage rates be 4.5%?

Time will tell.  Are you willing to take the risk?

Whether Selling or Buying...it is time to take action!

Now is the time to make a move – for buyers and sellers alike. The housing market is showing signs of a tepid economic recovery with housing prices showing improvement in many places across the country and mortgage rates continuing to remain near historic lows. How long will this continue? Nobody knows for sure.
If you’ve been tossing around the idea of selling your home or purchasing a primary or second home in the Myrtle Beach area, you’ve found yourself at an optimum time. Following are two factors to consider to determine if this is the right time for you to take advantage of the Myrtle Beach housing market.

1. Timing

The trends over the last several months indicate an increase in residential and condo prices. This is due in part to supply and demand. When supply shrinks, demand tends to rise and thus prices increase. Grand Strand condo inventory trends have shown a steady decline from June 2010 when there were 5,765 listings on the market to February of 2013 where there are only 4,143 listings. Also a help to increased prices has been the decline in distressed condo inventory which has fallen by 39% since August 2010. The trends thus point toward a rise in condo prices which is currently what the market is experiencing.
In regards to the Grand Strand residential inventory, there has not been as dramatic of a drop in inventory levels. The biggest decline though has been the drop in distressed residential listings where there has been a 30% decline over the last two years.
If these inventory trends continue, demand for both Grand Strand condo and residential properties should rise, which will also mean higher prices.

2. Professional advice

The journey of selling and/or purchasing a home is a daunting task in and of itself. You can compound that by going at it alone or working with a novice. The best strategy - seek a professional who knows exactly what is happening in the Grand Strand market.
Be sure to employ the following techniques to find the right professional real estate agent for you:

• Don’t be afraid to specialize. Not all agents are created equal. Be sure to seek out agents that specialize in what you are looking for (i.e. condos, residential, land).
• Do your research. Google can help you narrow down your search and discover if the agent and real estate company you are considering is up to the task of serving your real estate needs. Do they look professional? Do they provide online resources that are helpful? Do they have testimonials and references? Do they have a weekly newsletter that keeps you informed on what is happening in the market? Do they care?

If you are in the market to purchase or sell a Grand Strand property, we would be glad to help you. Be sure to grab our free whitepaper, Myrtle Beach Real Estate: 5 Things You Should Know, for insight and information on purchasing a property in the Myrtle Beach and Grand Strand area.

March Update

A consistent factor in nearly all the markets across the nation since late 2007 has been inventory and in many cases – too much of it. Whether this meant a large number of distressed sales, homes that just were not selling enough or buyers lacking confidence to buy – much of America went through a real estate downturn.

Distressed Property Inventory Lowest in Several Years
Today, that has changed. Not only is it a very active marketplace but also we are seeing a complete shift in trends whereas sellers now have the upper hand in lower to mid-level price ranges.

Consider this: just two years ago as much as forty percent of our available inventory was made up of short sales and bank owned properties. Today’s distressed property inventory has significantly reduced. Of our present-day 4,000 or so homes on the market right now, only 4% of them are bank owned foreclosures, which translates to about currently active 180 listings. For condos that number is even lower at just 3.3% of the approximate 3,500 available condos for sale being distressed properties.

Multiple Offers Are Artificially Inflating Prices
What was once very much a buyer-controlled marketplace has complete turned the tables – even for distressed properties. Buyers are up against a lot of competition, particularly in the $200,000 and under price bracket. It is necessary to be prepared to pay close to asking price for many of these homes given the high occurrence of multiple offer situations these days.

As demand continues to rise and inventory keeps dwindling downward buyers will be facing more and more of these situations where prices will be artificially inflated. So far the Fed has not done much to change interest rates and the expectation is that they will last at least a while longer. With fewer distressed properties competing with standard sales now is a great time for buyers to get in on the action.

Sellers Market for Homes Priced $200k and Under
With all the pent up demand from after the Presidential election and then the Fiscal Cliff issue – now there is a lot more consumer confidence and much more buyer activity in the marketplace. If you have been on the fence about selling – this is the time to jump off and consider listing your home before mainstream spring market sellers begin to list.
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As always, we provide a market snapshot on our video blog but for a customized look at your own real estate outlook and goals, I invite you to visit us! We look forward to helping you achieve your goals!  Contact us at 877-302-8576 or direct at info@benguyton.com

It Remains A Great Time to Buy!

Myrtle Beach Home Prices Continue to Rise

This market growth hasn’t gone unnoticed in the Grand Strand area. Myrtle Beach Online reports that, “Real estate sales showed a continued upward trend in January, with a 10.3 percent boost versus a year earlier in sales of single family homes and a 11.9 percent increase for condominiums.” This trend, present not only in Myrtle Beach but throughout the entirety of the Grand Strand, is beginning to push an ever-increasing amount of people to begin the search for a new home or condo.

Developments such as The Cottages at Seventh are evidence of the growing housing economy. If you are in the market to purchase a new vacation condo or property, we would be glad to help you. Be sure to grab our free whitepaper, Myrtle Beach Real Estate: 5 Things You Should Know, for insight and information on purchasing a property in the Myrtle Beach and Grand Strand area.

Please look to my team for professional guidance in real estate.  From New Home construction to existing homes and condos, we cover the market with a wealth of experience.