Category: Useful Information

Increases in Flood Insurance Inevitable – Facts about Charleston, SC Flood Insurance

The Latest News on Flood Insurance Changes

Luckily for us, Senator Tim Scott has been on our side pushing for FEMA to look at our flood plains and rezone Charleston SC’s over 20 yr old flood levels. After 2015’s historic devastating flooding that wreaked havoc over almost the entire state, not just the low-country, but including the midlands it is about time the FEMA flood maps be reconfigured. The Senate and House have passed (March 2014) a bill to delay premium hikesCharleston Flood Insurance for years on hundreds of thousands of homeowners who buy flood insurance from the federal government. Important points are:

The House bill caps annual price increases in order to prevent sticker shock, a move that will slow the pace of the authorized transition to actuarially sound policies. It also reinstates grandfathering of buildings built to a previous code standard. The new legislation would delay for up to four years huge premium increases that are supposed to phase in next year and beyond under new and updated government flood maps. It also would allow homeowners to pass below-cost policies on to people who buy their homes. The 67-32 vote reflects widespread concern about changes enacted two years ago to shore up the program’s finances. The changes are producing sky-high insurance rates that are unaffordable for many homeowners in flood-prone areas like Charleston whose insurance has historically been subsidized by the government and other policyholders.

Homeowners who upgrade to a new policy will be allowed to do so without being assigned to a new risk category. Homeowners who overpaid under the new rules will be reimbursed.

One proposal, by Sen. Pat Toomey, R-Pa., would proceed with the premium increases but cap them on most properties – including homes being sold – at 25 percent per year until the premium reflects the true flood risk. It faces almost certain rejection, though Toomey said it lines up with what the Obama administration wants. The administration said in a statement it “strongly supports a phased transition to actuarially sound flood insurance rates.”

The legislation is a win for coastal state Democrats like Sens. Mary Landrieu of Louisiana, Bill Nelson of Florida, and Bob Menendez of New Jersey, who have formed an unstoppable coalition with Republicans representing coastal areas and the Mississippi basin like Sen. John Hoeven of North Dakota.

The bill, however, contains no relief in the offing for 1.7 million owners of second homes, who are not covered by the Senate bill and who face annual 25 percent increases – provided they owned their home before Congress overhauled the program in 2012. They say the premium hikes threaten the viability of older beachfront towns.

(live5news.com)

CHECK YOUR HOME’S FLOOD ZONE LEVELS

 

 

 

 

As of March 20th 2015 the latest changes in flood insurance rates: 

Rate Changes

We all know the chances of a flood are usually slim, but if it does happen the effects can be devastating. So making sure you are covered correctly will help ease this possibility. As much as 75% or more of the low-country is considered in a flood zone or possibility of flooding. More than 14,000 homes in the Charleston area will be affected by recent changes to the new FEMA flood program. FEMA is changing the flood lines, and expect that the new changes will cost you money if you are buying a home in Charleston. The biggest thing to consider is to avoid buying a home built prior to 1974 and to be even MORE careful don’t consider buying a home built before 1995. As there were building codes that were implemented in the 90’s to combat the threat of floods and insurance providers consider this. In most cases, the new rules for flood insurance will require almost every house being purchased or insured to have a current up-to-date elevation certificate done.

Depending on what is on the elevation certificate about where or how your home is situated as it pertains to the flood plain will determine your cost for flood insurance. Some other factors that will dictate your cost for flood insurance are the way the foundation was built, age of home, the height of the home, and the number of foundation vents, and their size (sq inches). There are a lot of factors that go into calculating your insurance costs so the best thing to do is to contact a licensed local agent to answer your questions. Increases in flood insurance premiums having negative effects on listing your home for sale. MORE HERE –>


UPDATE: 1/16/14: You may hear about a flood insurance premium delay in the Omnibus Appropriations Bill that passed Congress this week – this delay is for implementing future premium increases on grandfathered (post-FIRM) properties only for the next 9 months. This does not address the devastating subsidized (pre-FIRM) point of sale premium increases hurting our real estate market.   The Omnibus Appropriations Bill prohibits funding for implementing future premium increases on “grandfathered properties” only. It does not include a delay for the home buyers who have already seen rate increases over the past year.

*The good news – the U.S. Senate plans to vote on legislation that would create a 4-year “time out” for both impacted home buyers and future increases on “grandfathered” properties. The Senate Majority Leader has promised the sponsors a vote on S. 1846 Homeowner Flood Insurance Affordability Act which would delay any increases for 4 years; they are currently negotiating the number of amendments and amount of debate time.  The bill is expected to come up the week of January 27 if not as soon as today. Both South Carolina senators, Tim Scott and Lindsey Graham, are co-sponsors of S.1846. If it passes the U.S. Senate this month, it would still have to clear the U.S. House of Representatives and that is a high hurdle to clear — although Congressman Mark Sanford supports the bill.

SUBSIDIZED PROPERTIES
This includes Pre-FIRM properties below Base Flood Elevation (BFE). Pre-FIRM in Charleston County means start of construction or substantial improvement was before 1975. To determine the pre-FIRM date for every city and county in South Carolina, click here.

Primary residences:
Beginning when the policy renews starting October 1, 2013, rates will move to full actuarial rates at the time the property sells (this will apply retroactively to all properties sold since July 6, 2012).

Non-primary residences, commercial properties and repetitive loss properties:
Beginning October 1, 2013 rates move to actuarial rates and premiums will increase 25% per year. The only way to know your full actuarial rate and to find your maximum premium is to have a current elevation certificate. Access FEMA’s 2013 Rate Schedule for second/vacation homes here (which includes the first 25% step increase)
Note: Rates are per $100 of coverage.

GRANDFATHERED PROPERTIES
This includes post-FIRM properties that were built at Base Flood Elevation, but BFE has since been raised since construction OR the property was mapped into a different flood zone.

Rates will be phased out and be brought to new actuarial rates only after the new flood rate maps are adopted. This is expected to be completed in South Carolina in late 2014 or early 2015.

ALL OTHER PROPERTIES REQUIRING FLOOD INSURANCE
All other properties will see rate increases of at least 5%, but possibly higher (in the 20% range), but each property is different.

(Source: http://www.charlestonrealtors.com/) Advise your clients to speak to an insurance agent before buying.


 

Downtown Charleston South Carolina Flood Prone Areas

(area in white is the worst)

Flood Areas Downtown Charleston SC


 

If you don’t carry adequate flood insurance and you have a mortgage your lender will give you what is called FORCED PLACED insurance. Which is usually much more expensive then you would find on your own.

Secondly, flood insurance is flood insurance. There is NO shopping around for flood insurance. FEMA regulates flood insurance and its costs. Agents simply are the distributors of the policies. However, your insurance could vary in cost IF and only if the agent providing you the flood insurance quote makes a mistake in inputting the information therefore, affecting the rating adversely. 

In Charleston County, FEMA said all homes built before April 1971 pre-date the first flood map. In Dorchester County, the date is January 1982, and in Berkeley County it’s September 1983.

Homes built after flood maps were adopted will not see as much impact from the NFIP changes, but they could be affected by the new flood maps FEMA is developing for the entire United States, the agency said.

On Oct. 1, when parts of the new law kicked in, flood policies increased an average of 10 percent. Under the changes, subsidies are being removed from second homes, rentals and businesses, as well as dwellings that have had repeated flood losses. Homes sold in pre-FIRM areas are automatically required to have the much more expensive insurance that reflects the “true risk” of flooding. (Source – Post & Courier)-

Senior officials for NFIP said they are $24 Billion in debt following many recent disastrous storms in recent years as the costs and consequences of flooding continue to increase. “For decades the program subsidized rates and has made insurance available but didn’t reflect the true risk of flooding, and just like our health insurance system, artificially low rates and discounts are no longer sustainable”.

Rate changes are likely to affect owners of subsidized pre-FIRM non-primary residences, business properties, and properties that have experienced sever repetitive flood losses. Owners of pre-FIRM condos and multi-family units will also see their rates gradually increase. Owners of pre-FIRM primary residences will retain their subsidies unless the policy lapses; it suffers a severe, repeated loss’ or it’s sold to a new owner which is retro active to July 6th, 2012 when the legislation was enacted.

As FEMA improves its mapping technology and draws more accurate flood maps, some homes may now be located in a flood zone, or higher risk area, where the flood insurance is more expensive. Also, some insurance agents may adjust rates to correct previous mistakes made about the home’s features when they are re-evaluating a policy at renewal.

Below are the lists of things needed to get adequate flood insurance.

1.) An up to date, signed survey, with an elevation certification from a licensed professional (engineer, surveyor, architect) on the most recent FEMA form dated as of Jan 1, 2007. To see if your home is in a flood zone click HERE.

2.) 2 dated photographs of the home both front and back within 90 days of requesting coverage.

Definitions of FEMA Flood Zone Designations : Charleston SC Flood Zones

ZONE

DESCRIPTION

B, C, and X

Areas outside the 1-percent annual chance floodplain, areas of 1% annual chance sheet flow flooding where average depths are less than 1 foot, areas of 1% annual chance stream flooding where the contributing drainage area is less than 1 square mile, or areas protected from the 1% annual chance flood by levees. No Base Flood Elevations or depths are shown within this zone. Insurance purchase is NOT required in these zones.

ZONE

DESCRIPTION

A

Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. Because detailed analyses are not performed for such areas; no depths or base flood elevations are shown within these zones.

AE, A1-A30

Areas with a 1% annual chance of flooding and a 26% chance of flooding over the life of a 30-year mortgage. In most instances, base flood elevations derived from detailed analyses are shown at selected intervals within these zones.

AH

Areas with a 1% annual chance of shallow flooding, usually in the form of a pond, with an average depth ranging from 1 to 3 feet. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones.

AO

River or stream flood hazard areas, and areas with a 1% or greater chance of shallow flooding each year, usually in the form of sheet flow, with an average depth ranging from 1 to 3 feet. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Average flood depths derived from detailed analyses are shown within these zones.

AR

Areas with a temporarily increased flood risk due to the building or restoration of a flood control system (such as a levee or a dam). Mandatory flood insurance purchase requirements will apply, but rates will not exceed the rates for unnumbered A zones if the structure is built or restored in compliance with Zone AR floodplain management regulations.

A99

Areas with a 1% annual chance of flooding that will be protected by a Federal flood control system where construction has reached specified legal requirements. No depths or base flood elevations are shown within these zones.
High Risk – Coastal Areas
In communities that participate in the NFIP, mandatory flood insurance purchase requirements apply to all of these zones:

ZONE

DESCRIPTION

V

Coastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. No base flood elevations are shown within these zones.

VE, V1 – 30

Coastal areas with a 1% or greater chance of flooding and an additional hazard associated with storm waves. These areas have a 26% chance of flooding over the life of a 30-year mortgage. Base flood elevations derived from detailed analyses are shown at selected intervals within these zones.

Investment Property Charleston SC | Income Producing Real Estate

CHARLESTON SC INVESTMENT PROPERTIES & INCOME PRODUCING REAL ESTATE

For investors in Charleston SC the real estate game is a tricky one. We all made thousands and — probably millions if you add it all up — flipping houses, leasing offices and renovating condos. Then the real estate market collapsed, throwing the U.S. into the 2007-2009 recession.

Now the prognosis for real estate investments is looking much better, though it’s anything but simple. Some commercial real estate has rebounded, with investors craving income that real estate provides, while Low-country residential Charleston real estate — particularly single-family homes — may be at once-in-a-lifetime bargain prices.

Four top experts were asked for their take on the the opportunities and potential pitfalls facing real estate investors in the coming years. Edited excerpts of their interviews follow:

Jim Sullivan, managing director of REIT research, Green Street Advisors

Every diversified investor should have some exposure to commercial real estate, and REITs [real estate investment trusts] provide a terrific, transparent and liquid way to get that exposure. Operating fundamentals in most property types range from good to great, with good being the shopping center business and industrial business and great being the apartment business. The economy is not doing great, but the silver lining for commercial real estate is how little new supply is coming on the market. Too much new commercial construction is typically what puts a halt to real estate recoveries. This time around, it’s just not an issue.

Multi-Family Income Properties

 

REITs tend to be specialized by property type. You can pick and choose, depending on what your economic outlook might be. If your forecast is a little rosier, you’d want to be in property types that respond well in economic recoveries — hotels, for example, or REITs that own shopping centers with lots of small tenants. If you wanted to be a bit more defensive, health care REITs are a terrific place to be. When investing in Charleston real estate the safe bet would obviously be in tourism based avenues considering that is the most consistent driver of revenue.

The biggest opportunity is buying distressed single-family homes, because that market has been completely beat up. The next biggest opportunity is buying land because very few people have been focused on it. If you have a long-term view, you’ll probably see a significant multiple return. Buying land is a complicated business, though. Mom-and-pop investors should not be buying land.

Lauren Pressman, director of investment research at wealth management firm Aspiriant

The U.S. is in a period of sustained but very slow growth. Job reports are huge factors for real estate, because jobs create demand for housing, for offices, for travel and at retail establishments. We’re wary of things like retail and office, except in very unique circumstances. Multifamily real estate (apartment buildings) arguably had all the tail winds at its back to do the best of all asset classes. However, be careful. There is so much capital chasing multifamily, and that can lift prices beyond a point where your return is commensurate with risk.

No matter what your strategy is always be careful and have a good local agent to help you navigate through the maze of options out there for investing in real estate in Charleston or anywhere. Find a great contractor in Charleston and let them help you with the renovations, and repair necessary to get a C.O. and move onto the next real estate opportunity.

VACATION RENTALS

One of the long tried and true income producing real estate investments popular in Charleston area is in beachfront homes or resort vacation rentals. It’s no mystery that homes in beach communities are very attractive year round and hundreds of thousands of visitors come to our beaches in S.C. to unwind. Homes for sale on the Isle of Palms and in Wild Dunes real estate make big money on weekly vacation rentals for their owners. Many developers and investors will even buy an existing home, tear it down and build a new one just for the returns it can produce. Weekly rentals on Folly Beach, Kiawah, Seabrook Island, and even downtown Charleston garner upwards of $4000 to $7000+. Even with HOA Dues in Wild Dunes, Kiawah Island, and Seabrook Island + monthly regimes for condos/villas these properties can get easily $30,000 yr for one bedroom to $90k+ for beachfront and 3 bedroom units. 

There has never been a better time to pull money out of the equities market and into real estate, rates are low, and prices are too.

SHORTSALES & FORECLOSURES:

MLS Listings Data

Total Listings:
1775
Average Price:
$1,366,889
Highest Listing Price:
$18,000,000
Average Days On Market:
106
Average Price/Sqft:
$559

Results 1 - 6 of 1775 Set Up Email Alerts

Wild Dunes SC Resort Real Estate Ownership Fees HOA Dues Costs

There are many wonderful beach resort communities here in South Carolina such as Kiawah, Seabrook, Folly Beach, Sullivan’s Island, but the Isle of Palms SC has to be one of the best. Just located a few miles outside the historic area of Charleston, SC the Isle of Palms holds a little resort “gem” called Wild Dunes. Gated, but not private the Wild Dunes resort is open to the public for golf, tennis, and dining. Isle of Palms is just on the other side of Mount Pleasant in Charleston county across the isle of palms connector. Mount Pleasant is one of the Charleston area’s most popular suburban communities. Real estate in Mount Pleasant SC is what you would expect to find in most “standard” suburban areas around the country.

However, you must be aware of what it takes to buy in a gated resort. Unlike purchasing a home in a “normal” area, owning in a resort comes with some extra costs you might not be used to. Resorts have more costs like regimes, HOAs, Dues, and at Wild Dunes in SC There is a ONE TIME transfer fee of 1/2 of 1% of the purchase price. So if you purchase a $500,000 home that means you’ll pay $2500 transfer fee to the Wild Dunes Association. This helps pay to keep up the area (in addition to your monthly regime payments), and HOA dues. Which ALSO go to help keep up the maintenance of the building (if SFA), grounds, amenities, insurance, clean up, etc.

The HOA monthly payments (aka regime fees) usually range from $400 a month to well over $1200 depending on the building and area. Some of the condo developments ALSO have half of 1% capital contribution fee due at closing. Regime dues can be monthly or quarterly. The good news is that these payments also cover your insurances on your unit for the wind coverage, flood, and hazard (especially when pertaining to condo/villa). Not SFD. These fees do not give you free golf in the resort, however, most times ownership in a resort does get you some privileges and discounts for use of golf, and tennis amenities.

Regimes By Building & Property:                             $924 HOA payment each year as well.

Port o Call – $409 per month
Pelican Bay – $225 monthly
Ocean Club – $850 monthly
Ocean Pt – $285 monthly
Mariners Walk – $483 monthly
Linkside Ct – $625 monthly
Lagoon Villas – $365 monthly
Commons Ct – $260 Quarterly
Fairway Dunes – $535 monthly
Grand Pavilion – $258 quarterly
Racquet Club
 – $500 monthly
Summerhouse – $855 monthly
The Village at Wild Dunes – $1400 monthly
Shipwatch Villas – $525 monthly
Tidewater – $600 monthly
Twin Oaks – $177 Quarterly
Beach Club Villas – $475 monthly
Sea Oats – $325 monthly

Every year people come to The Isle of Palms, to vacation in and buy Wild Dunes real estate and enjoy the lifestyle of living or owning a home in the Wild Dunes resort. Featuring two stellar golf courses, and tennis courts, elegant landscapes, beach access, swimming pools all over, Wild Dunes offers a vacation lifestyle anyone could love. From an investment standpoint having a vacation rental on the island isn’t a bad choice either. Many of the homes on the Isle of Palms rent for $5000+ a week, and beachfront condos can easily gross $40,000 – $80,000 a year.

 

MLS Listings Data

Total Listings:
56
Average Price:
$1,585,229
Highest Listing Price:
$6,995,000
Average Days On Market:
53
Average Price/Sqft:
$877

Results 1 - 12 of 56 Set Up Email Alerts

Helpful Homeowner & New Home Buyer Resources | Utility Companies | Government | Municipalities and More

Charleston, Dorchester, Berkeley Utility CompaniesCharleston SC area county gas, power, cable, electric, water, and utility companies including Berkeley and Dorchester counties. Search all the local area utility companies below for the Charleston tri-county area. Below is a helpful list of new home buyer resources, including: lender information, flood insurance information, homeowners insurance info, local utility companies list, phone service providers, South Carolina wind and hail insurance information, VA loan information, local governments and more.  

 

 

FEMA – Federal Emergency Management Agency will help you with information about flood insurance.

Flood Map – Check Here to see if your Charleston, Mount Pleasant, Isle of Palms, James Island, Daniel Island, Kiawah, Folly Beach or Sullivans Island home or business is in a flood zone.

SC Wind and Hail Underwriting Association – The South Carolina Wind and Hail Underwriting Association (SCWHUA) is the residual property insurance market in South Carolina. It provides coverage for the perils of wind and hail in the coastal area of the state designated by the Legislature as “Beach.” The territory is defined by state law.

Freddie Mac – Is a GSE ( Government Sponsored Entity) they are NOT lenders for mortgages directly to consumers, but buyers of loans written to consumers by banks and lending institutions. If banks don’t have a place to sell the loans they write then they will at some point run out of capital they have saved -which is essentially the deposits made by their customers.

Fannie Mae – Very similar to Freddie Mac, but with different lending guidelines as to the loans they will purchase. Is thought to be the more conservative (traditional/conventional loans) buyer of loans between the two GSEs.

Ginnie Mae – Very much like Fannie Mae and Freddie Mac, but instead of buying only conventional loans they purchase government loans from FHA, VA, and USDA.

FHA – Federal Housing Administration – A part of the United States Department of Housing and Urban Development (HUD), FHA provides mortgage insurance on single-family, multifamily, manufactured homes and hospital loans made by FHA-approved lenders throughout the United States and its territories.

The United States Recovery Plan

The VA ( Veterans Administration) – Set up to help veterans be able to adjust to life after service to our nation, by providing special medical, educational, job, and mortgage assistance. Specifically tailored for US service men and woman. How to get your VA Loan and check if you are eligible.

South Carolina Dept. of Insurance – to protect the insurance consumers, the public interest, and the insurance marketplace by ensuring the solvency of insurers; by enforcing and implementing the insurance laws of this State; and by regulating the insurance industry in an efficient, courteous, responsive, fair, and equitable manner.

South Carolina Dept. of Consumer Affairs – As the state agency designated to represent the interests of consumer, the S.C. Department of Consumer affairs attempts to resolve complaints and seeks to inform and educate consumers in order to create an atmosphere in which consumers will be more aware of their rights and responsibilities in the marketplace.

Charleston, SC County – The website for all real estate, municipal, county, and tax information. Charleston County, SC Government Website.

Berkeley County Government – Website for all information pertaining to living in Berkeley county, tax information, laws, municipal, departments, contacts, officials and more.

Dorchester County The Dorchester County website for home owners and community members living in Dorchester County.

USDA – USDA Website provides homeownership opportunities to rural Americans, as well as programs for home renovation and repair. USDA also makes financing available to elderly and disabled. Check eligibility for obtaining USDA mortgage.

SC Dept of Labor, Licensing, and Regulation – South Carolina Real Estate Council whose purpose was to protect the public’s interest when involved in a real estate transaction. The statute regulated the real estate industry by defining standards of practice and requiring the licensing of those individuals engaged in the business.  

 Charleston – Berkeley and Dorchester UTILITIES 

Electric & Gas Power Companies

 

Charleston Region Water & Wastewater Companies

Cable / Satellite / Telephone Companies

Berkeley Electric Cooperative P.O. Box 1234 Moncks Corner, SC 29461 (843) 553-5020Berkley County Water & Sanitation Authority (BCW&SA) 2111 Redbank Road Goose Creek, SC 29445 (843) 572-4400 Affordable Satellite Services 100 Millbrook Cir. Summerville, SC 29485 843-875-0740
Edisto Electric Cooperative P.O. Box 738 St. George, SC 29477 (843) 563-3292City of Goose Creek P.O. Drawer 768 Goose Creek, SC 29445 (843) 797-6220 Audio Video Connection 1951 Belgrade Ave. Charleston, SC 29407 843-769-7738
Palmetto Economic Development Corp 1201 Main Street, Suite 1701 Columbia, SC 29201 (803) 254-9211 City of Isle of Palms Water & Sewer Commission 1300 Palm Blvd Isle of Palms, SC 29451 843-886-6148  Berkeley Cable Television Inc. Harleyville, SC 29448 843-462-7600
SCE&G (SCANA Corp.) 1-800-251-7 Commissioners of Public Works City of Charleston P.O. Drawer B 103 St. Philip Street Charleston, SC 29402 (843) 727-6800  Berkeley Cable TV (Customer Service) 579 Stoney Landing Rd Moncks Corner, SC 29461 843-761-8188
 James Island Public Services Dorchester County Water & Sewer P.O. Box 9 2120 East Main Street Dorchester, SC 29437 (843) 832-0070  Comcast Cablevision 4400 Belle Oaks Dr. #4100 North Charleston, SC 29405 843-554-4100
Summerville Commissioners of Public Works P.O. Box 817 Summerville, SC 29484 (843) 875-8750 Mt. Pleasant Waterworks & Sewer Commission P.O. Box 330 1619 Rifle Range Road Mt. Pleasant, SC 29465 (843) 884-9626   Direct TV http://www.direct.tv 51 Gadsden St. Charleston, SC 29401 843-958-8577
Saint Johns Water Company Inc 3362 Maybank Hwy Johns Island, SC 29455 843-559-0186 North Charleston Sewer District P.O. Box 63009 7225 Stall Road North Charleston, SC 29419 (843) 764-3072 Direct Satellite TV Charleston, SC 29401 843-744-3011
Knology Cable Charleston, SC 4506 Dorchester Road Charleston, SC 29405 Office: 843-225-1000   
    

Charleston SC Mortgage Rates Near Record Low

Mortgage Lenders Charleston, SC

What to Know How Much You Can Afford?

The average U.S. rate on a 30-year fixed mortgage has fallen to near its record low set earlier this month bringing down the rates for those of us here in Charleston, SC as well.The rate on the most popular mortgage dipped to 3.37% from 3.39% last week, mortgage buyer Freddie Mac said Thursday. Two weeks ago, the rate reached 3.36%, its lowest level on records dating to 1971.The average rate on the 15-year fixed mortgage, often used for refinancing, set a record low of 2.66%, down from last week’s 2.7%.Cheaper mortgages are helping fuel a modest but steady housing recovery, coupled with falling inventory the Charleston SC housing market has seen a dramatic uptick in recent months.The average rate on the 30-year loan has remained below 4% all year. And rates have fallen even further since the Federal Reserve started buying mortgage bonds in September to try to encourage more borrowing and spending.The Fed said it would continue buying bonds until the job market shows substantial improvement. When home prices rise, people tend to feel wealthier and spend more freely. And consumer spending drives nearly 70% of economic activity. Charleston, SC real estate agent and ex-mortgage professional states:  ” be prepared for mortgage rates to eventually increase as soon as the fed realizes they can’t afford to continue to purchase bonds in order to fund the housing market recovery.  A natural housing recovery not based on artificial measures is what will achieve a proper recovery; buying bonds is simply a band-aid”.Home sales have risen from last year, and prices are rising more consistently in most areas. Charleston SC home builders as well as those around the U.S. are more confident and starting more homes. Lower rates have also persuaded more people to refinance. That typically leads to lower monthly mortgage payments and more spending.Not only builders in Mt. Pleasant SC, but also throughout the nation last month started construction on single-family houses and apartments at the fastest rate in more than four years, the Commerce Department said Wednesday. And they laid plans to build homes at an even fast pace in coming months — a signal of their confidence that the housing rebound will last.Other recent reports have shown marked improvement in the housing market five years after the bubble burst.Still, the housing market has a long way to a full recovery. And many people are unable to take advantage of the low rates, either because they can’t qualify for stricter lending rules or they lack the money to meet larger down payment requirements.To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount.The average fee for 30-year loans was 0.7 point, unchanged from last week. The fee for 15-year loans also held steady at 0.6 point.The average rate on a one-year adjustable-rate mortgage edged up to 2.60% from 2.59%. The fee for one-year adjustable rate loans was stable at 0.4 point.The average rate on a five-year adjustable-rate mortgage rose to 2.75% from 2.73%. The fee was unchanged at 0.6 point.

 EASY MORTGAGE CALCULATOR

Some Content By: USAToday.com
 

Ten Ways to Turn off a home buyer

Well, even though the jobs report wasn’t as bad as expected that still doesn’t mean our country is out of the quagmire yet. Especially when it comes to housing. Some figures estimate 1 in every 400 homes is being foreclosed on, and there is expected to be as many as 10 million short sales over the next 5 years.What does this mean for you as a seller? Losing a buyer for something not related to a serious disagreement over price is careless. So here are the 10 things you need to be careful of when trying to sell your home.
  1. Dirt -Hands down, our panel agrees: Nothing turns off a buyer quicker than a dirty house.
  2. Odors – Buyers, it’s said, buy with their noses. Make sure your home smells fresh and inviting.
  3. Old fixtures – Want buyers to roll their eyes? Leave old fixtures on your doors and cabinets. Faded, worn, broken, outdated, and ugly fixtures will surely turn away buyers. Sure you can replace them, but people want to move right into a house without having to do work.
  4. Wallpaper – Your grandmother may have had it in every bedroom. Your mom may have loved it as a room accent. But today’s buyer wants no part of wallpaper.
  5. Popcorn acoustic ceilings – Times change, and with them home decor styles. Acoustic popcorn ceilings, once the must-have for fashionable homes in the ’60s and ’70s, now badly date your space.
  6. Too many personal items – Psychologically, when buyers tour a home, they’re trying it on to see how it fits, just as they would a skirt or a pair of pants. If your house is cluttered with too many personal items, it’s like the buyer is trying on those clothes with you still in them. A fit is unlikely.
  7. Snoopy sellers – Its best not to be at the home when there is a showing. Buyers want to walk and anaylze at their own leisure without the sellers 2 cents every few minutes. Its perceived as a hard sell. If you must be there, only be there to answer questions about the home and nothing else. Pretend to be invisible.
  8. Misrepresenting your home – Misrepresenting your house online in the Multiple Listing Service is a sure way to really upset buyers and their Realtors. If I show up with my buyers and the house is NOT what the sellers agent says it was on MLS I am going to be upset and so is the buyer for wasting our time and gas to go see it.
  9. Poor curb appeal – Much is made of curb appeal, and for good reason: It’s your home’s handshake, the critical first impression that lasts with most buyers. This one is HUGE deal. People want to come home to a beautiful home when they drive up, and the first impression people get of you is your home from the outside.
  10. Clutter – Whether inside or out, less is more when it comes to clutter.

Some of this information gathered from: Bankrate.com