Ten Ways to Turn off a Potential 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. Below are the most common things that will make buyers turn their nose up at a home for sale in Charleston SC, especially when the market is cooling off and becoming a buyer’s market. In a recent article by MoneyWise, “We’re seeing nightmare scenarios where deals are getting canceled at the last minute for the most minute reasons,” said Rafael Corrales, an agent in Miami, where about 2,500 home purchases were canceled in June (or 17.6% of homes that went under contract). Buyers often back out during the inspection period because they find something they don’t like, but affordability is really the underlying issue.” About 56,000 home purchases were canceled, equal to 15% of homes that went under contract—the highest percentage of any June on record. Buyers are skittish due to elevated mortgage rates and record-high home prices. Dirt -Hands down, our panel agrees: Nothing turns off a buyer quicker than a dirty house. Odors – Buyers, it’s said, buy with their noses. Make sure your home smells fresh and inviting. 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 Faded, worn, broken, outdated, and ugly fixtures will surely turn away buyers.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. 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. 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. 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. Snoopy sellers – Its best not to be at the home when there is a showing. Buyers want to walk and analyze 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. 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. Too many seller’s agents in an effort to get more feet through the door will “embellish” the home or property. For example, one that bothers me the most as a Realtor is when a home is labeled “waterfront” when really the home is just next to a small rain run-off retention pond. 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. Clutter – Whether inside or out, less is more when it comes to clutter. IF you’re considering listing your home in South Carolina for sale, please feel free to reach out to the James Schiller Team, of Brand Name Real Estate and we’ll be happy to give you an honest market analysis of your home free of charge so you can avoid picky buyers leaving too soon.
Jumbo Mortgage Loans Charleston SC As of 2024, the conforming loan limit for a single-family home is $726,200 in most parts of the United States. Any loan amount above this threshold is considered a jumbo loan. However, in high-cost areas, including certain counties in states like California and New York, the conforming loan limit can be as high as $1,089,300. Loans exceeding this amount are also classified as jumbo loans in those areas. Jumbo loans typically come with stricter qualification requirements and higher interest rates, as they are not backed by Fannie Mae or Freddie Mac. *Jumbo mortgage rates in Charleston SC remain slightly higher than conventional mortgages due to the higher loan amounts and risks associated with them. These loans, which exceed conforming loan limits, generally have higher credit score and down payment requirements. Currently, jumbo rates average around 7.2%-7.5%, which is comparable to conventional mortgage rates but still on the higher side for larger loans. Looking ahead, experts predict that mortgage rates could trend downward throughout 2024 but will likely remain above 6%. Factors like further Fed rate hikes (if inflation resurges) or unexpected economic disruptions could slow this decline. Several analysts suggest that mortgage rates will end 2024 between 6.15% and 6.7% depending on the economic landscape. However, if the economy experiences a significant downturn or further rate cuts from the Fed, rates could drop even lower. Here in the Charleston, SC area it is no mystery that we have some very expensive residential luxury real estate, and unless borrowers have the cash to pay for it, often times they need jumbo loans. There are countless beach and water front homes on Kiawah, Seabrook Island, Daniel Island, Sullivan’s Island, Folly Beach and Mt Pleasant as well as homes downtown Charleston SC that exceed $10Million. Click see the latest updates on interest rates and lowest current mortgage rates. Jumbo mortgage loans are a higher risk for lenders. This is because if a jumbo mortgage loan defaults, it may be harder to sell a luxury residence quickly for full price because less of the population can afford pricier homes. Luxury prices are more vulnerable to market highs and lows in some cases. That is one reason lenders prefer to have a higher down payment from jumbo loan seekers. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan. The interest rate charged on jumbo mortgage loans is generally higher than a loan that is conforming, due to the higher risk to the lender. It can be more expensive to refinance a jumbo loan due to the closing costs, because taxes, insurance and other related costs are so much greater. Some lenders will offer the service of an extension and consolidation agreement, so that a jumbo refinancer will not have to pay for mortgage tax again on the same principal balance. In other cases, title insurance companies will offer up to a 50% discount, often required by law for those refinancing within 1 year to 10 years. The largest discount is for refinancing within one year. Some consumers seeking a jumbo mortgage choose to seek advice from a competent professional familiar with jumbo mortgage loans. OPTION 2 – Some investment brokers and/or large investment firms will lend money to their clients for jumbo luxury loans but secure it against liquid assets they manage for them. Often times these loan are lower in cost since their is collateral backing the loan to the borrower.