Sunny Hilton Head, South Carolina

In line with expert's estimates, the The Standard & Poor's/Case-Shiller home price index rose by 0.4 percent.

This was the 5th month in a row for an increase.  But, the index was lower by 7.3 percent from October last year. 

The index is now up by 3.4 percent from its May bottom but is below it's April peak yy 30%in April 2006. Only 11 of the 20 cities tracked in the report showed gains.

Reports showing an increase in durable goods orders and a decline in claims for unemployment benefits helped spur the market higher last week. On Monday, investors were encouraged by a jump in retail sales.

Consumer Confidence Grows

Consumer spending is the key to our economic growth.The better consumers feel about the economy, the more likely they are to spend.

Economists expect the consumer confidence index to rise to 52 in December from 49.5 in November's. The years low of 25.3 was set in February. A reading above 100 is a sign of stronger growth.

Now is the time to buy a Bluffton SC home. The opportunities could not be better and the low interest rates won't last forever. Go here to get a feel for home selling prices for Bluffton, and the greater Hilton Head Area. 

I am delighted to be associated with Keller Williams Realty.

Keller Williams

• is now the 3rd largest Real Estate Company in the U.S.
• was the only real estate company to report gains in associates
• added 22,786 new agents in 2009

In my previous post I wrote about the new RESPA regulations.

Here's a Quick Recap of The Recent Changes in RESPA (The Real Estate Settlement Protection Act)

1. A new form replaces the one page Good Faith Estimate previously provided. Typical of regulatory agencies--the new form is now 3 pages--it used to be just 1.
2. There will be greater transparency when it comes to closing costs.
3. The new form and regulations will make it easier for the consumer to shop

 (direct quotes from this pamphlet)

1-Page #_6_Role of the Real Estate Agent or Broker--"Frequently, the first person you consult about buying a home is a real estate agent or broker. Although these agents and brokers provide helpful advice, they may legally be representing the interests of the seller and not yours."

Does this Apply in S.C.?

In South Carolina, an explanation of agency law is required. It is to the home Buyer's advantage to be represented EXCLUSIVELY by ONE real estate broker.

Here's the link to the SC agency Law Brochure.

Bottom line, when a home buyer doesn't have an exclusive buyers agency agreement in force, the real estate agent who is showing you properties represents the interests of the SELLER.

2-Page#_6_ Real Estate Broker Offers to Help Home Buyer Get a Mortgage

The pamphlet reads as follows: "Sometimes, the real estate broker will offer to help you obtain a mortgage loan. He or she may also recommend that you deal with a particular lender, mortgage broker, title company, attorney, or settlement/closing agent. You are not required to follow the real estate broker‟s recommendation, and you should compare the costs and services offered by other providers before making a decision."

Does this Apply in the Beaufort County Area of  S.C.?

Most agents don't "recommend" a specific lender or loan originator--they typically provide a list of professionals to choose from--there is nothing that obligates a home buyer to use anyone from the list.

3-Page#_6_Role of an Attorney

The Pamphlet reads as follows: "Before you sign a sales agreement, you might consider asking an attorney to review it and tell you if it protects your interests. If you have already signed your sales agreement, you might still consider having an attorney review it.

Hilton Head Area Association of Realtors Has a Standardized Purchase Agreement--They spent many man-hours creating a clear standardized purchase agreement that is in the best interests of all parties.

Caveat: If you must discuss the terms and conditions specified in this standardized purchase agreement you may by all means seek out the advice of a qualified attorney: that would be an attorney who specializes in real estate law. Those who do not specialize in the practice of real estate law can cause all kinds of delay.

The Pamphlet further states, that "If choosing an attorney, you should shop around and ask what services will be performed and whether the attorney is experienced in representing homebuyers.

What's the normal practice in the Beaufort County Area?

In the Beaufort County area, Escrow Services are handled by real estate attorneys who specialize in real estate transactions. They will do title searches,get title insurance, get mortgage information together from the lenders involved to enable a closing, prepare HUD-1 statements, etc.

The real estate professional is charged with insuring that all of the various tasks necessary for closing the real estate transaction are accomplished. He or she will coordinate activities, help to facilitate scheduling of tasks and follow up to insure that the transaction is on track to close.

The real estate professional is also responsible for the accuracy of the HUD-1. Attorneys are to provide a copy of the HUD-1 48 hours before closing for this review.

My advice to  any homebuyer interested in purchasing a home in the Beaufort County Area is to become as knowledgeable as you can and seek the advice of competent real estate professionals.

You can then discuss your questions with them and get the very best advice.

Here's the link to the HUD Pamphlet (URL)

 Contact Info: You can call me at 843-368-9146

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Beaufort County, South Carolina Homebuyers, it is important to be aware of these changes, since--according to HUD-- these new regulations are to your advantage. And --we are told--you might save on average $700 on your closing fees. 

BUT HONESTLY--I am not going to bet on that! From my point of view, the more regulation we have, the more complicated it gets for all involved in a real estate transaction. Most of us are well aware that estimates on "saving money" that come  from a governmental agency is highly questionable.

In the name of keeping everyone honest and protecting the consumer, most of us know, the reverse is often the case.  My hunch is that it will take longer to close a real estate transaction then previously. It is tough enough getting financing. The last thing we need are regulations that bog us down. Be that as it may--here's the deal...

What is RESPA?

RESPA is the acronym for  the "Real Estate Settlement Protection Act" 

The Real Estate Settlement Procedures Act (RESPA) was enacted in 1974. It's purpose was to provide consumers protection from excessive fees by reducing closing costs associated with financing the purchase of homes. This was done by promulgation more transparent disclosures of settlement costs. The law was also designed to prevent loan originators and others involved in a transaction from giving and or receiving referral fees and kickbacks.

The Department of Housing and Urban Development (HUD) is directly involved in the  issuance of regulations and provides RESPA guidance to industry and consumers alike.  

What Do The Changes if RESPA do for you?

On November 17, 2008, HUD published a new final rule “To Simplify and Improve the Process of Obtaining Mortgages and Reduce Consumer Settlement Costs” and has revised the RESPA rules which mandate the use of a new Good Faith Estimate (GFE) and HUD-1 which go into effect on January 1, 2010. 

Interested in purchasing a home in Bluffton, Beaufort and Hilton Head areas of  SC?  Maybe you QAULIFY to take advantage of the recent Home Buyer Tax Credit Program Extension--

Here's a brief overview:

The Tax Credit Benefits will Help those who areIt is dollar-for-dollar benefit, not a tax deduction which would reduce a tax liability which would yield less in actual dollars in your pocket. In effect, a  homebuyer who qualifies for the entire benefit and owes $8,000 in income taxes would owe nothing to the IRS.

Secondly, homebuyer who qualifies for the $8000 credit or the $6500 credit would receive a check from the treasury for the difference between their tax liability and any used credit. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 and has a tax obligation of  $4,000 in income taxes, the treasury will issue a check for the difference of $4000 to the homebuyer.

Who can take advantage of the tax credit?

1-First-Time Homebuyers 

Who may qualify as a first time homebuyer? Those who have not owned a home, within the last three years.  Both single and married tax payers who file jointly may qualify for the full tax credit.

The amount of the Tax credit for First-Time Homebuyers  is 10% of the purchase price of the home. The maximum credit allowed under the new law is $8000.

2-Current Homeowners

To qualify for this The tax credit program, home owners must have occupied a home for a period of five consecutive years for the last eight years. This home must have been a primary residence--vacation homes and investment properties do not qualify. Qualified purchase may receive a tax credit of up to $6500.

Other Qualification Stipulations

• Maximum Purchase Price  of any home cannot exceed $800000
• Single Tax Filers who earn up to $125000 are eligible for the full amount of the tax credit
• Single Tax fliers who earn in excess of $125000 up to $145000 are eligible for prorated tax credit 
• Single Tax fliers who earn in excess $145000 do not qualify for the tax credit
• Joint Tax Filers who earn up to $225000 are eligible for the full amount of the tax credit
• Joint Tax Filers who earn up in excess of $225000 up to $245000 are eligible for prorated tax credit
• Joint Tax Filers who earn $245000 or more are not eligible

DEADLINES

All purchase contracts must be effective, no later than April 30, 2010 and must close no later than June 30, 2010. There are extensions for those in the military

(I am in no way offering readers tax or accounting advice, nor will I ever do so. Always check with your tax, accounting and mortgage professional.)

More information

National Association of Homebuilders

Internal Revenue Service

The Wall Street Journal

Contact Info:

You can call me at 843-368-9146

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While we enjoyed family, fun and food this past thanksgiving, it was hard not to think about those who are struggling to meet their basic needs this holiday season. 

We continue to have an abundance of foreclosures and short sales. I did a quick analysis of 188 active listings in the lower price ranges. Most of these were short sales or foreclosures. There are plenty of buying/investing opportunities in our Beaufort county area. While foreclosures and short sales can be challenging, for home that represent great values, it is worth the effort 

There are no easy solutions to Beaufort County foreclosure and short sale problem. Realtors are in a unique position to be a part of the solution. Our services can help  people restore their financial lives.

If you are reading this and you are a home owner in a "distress" situation, give us a call. If you are a home buyer or investor. we can help you search for and find just the right home-buying opportunity

Cell:843-368-9146

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