Among the various Columbia SC home selling tips are the usual recommendations such as decluttering your home, cleaning the carpets, sprucing up the landscaping and perhaps doing a little painting. While those are certainly good suggestions designed to maximize the curb appeal and presentation of your home to prospective buyers, here’s another important “to do” to add to the list.
Vital Statistics – Columbia SC Home Selling Tips
There is one thing we recommend you do before you sell your home: Check your home’s vital statistics. Consult your local government’s resources to ensure it has accurate information regarding your home.
You’ll find your local municipality has information on your home – regardless of its age, size or location. Your town’s building department and assessor’s office will both have records about your home. The reason to check those records prior to listing your home for sale is simple – often the information contained therein could be erroneous. If the records don’t match your home’s reality, any resulting issues that are unresolved could delay the sale or even squash it completely. For example, let’s say you’ve always been told your home contains 2,759 square feet. Armed with that information – without verification – you list your home at an asking price based on comparably-sized homes. When a buyer signs a contract to purchase your home he assumes, as you did, that the square footage is correct. However, at some point prior to the loan closing – either during the appraisal process or some other routine event – it was discovered the correct square footage is actually 2,579. A transposition error caused you to assume your home had 180 more square feet than it actually does. While 180 square feet isn’t a huge difference, if the sales prices was calculated at, say, $90 per square foot such a mistake could potentially mean a difference of $16,200. That’s enough to make the mortgage lender alter the amount they would be willing to finance and it could substantially change your prospective purchaser’s interest level in paying a higher than market asking price.
So, remember this one of many Columbia SC home selling tips: Consulting your municipality’s building department could have avoided the above-referenced discrepancy. The town or municipality keeps records of every construction permit issued and all buildings built. In addition, the building department is responsible for making sure that if any changes are made to the building they meet the current codes in force, and that the work is performed by licensed contractors. The primary concerns of the building department are home health and safety issues. Therefore, when an application is made for a new construction or home improvement permit, a building inspector from the code enforcement office must physically visit the property to review, approve and give written permission that the work done by the contractor, electrician or plumber is approved and meets the local codes.
When a purchaser agrees to buy your home and signs the contract, often they (or their representative) may go to the building department to perform due diligence. In the event there’s an open permit – a permit that was applied for, but never signed off on for final approval – that could raise a red flag. Even worse is if no record exists in the building department of work performed that should have been inspected and approved.
Sometimes home sellers discover a mistake was made. For example, permits weren’t approved or closed properly, but the seller assumed they were. The mistake could have been made by the building department, the former owner or the building contractor. In addition, it’s not unusual for homeowners to mistakenly assume that any type of renovation was performed as the building code requires, only to find out it wasn’t. Such a mistake can potentially present a problem when a seller tries to sell his home. The reason is that once the title to the property transfers to the new owner, he assumes responsibility of any illegal work not meeting the code requirements. That’s a liability few, if any, buyers want to inherit.
In addition to the building department, the town or county assessor maintains records on the local real estate market to ensure the assessed value of your home is correct and comparable to what the market reflects. The assessed value, of course, affects the real estate property taxes.
Before you put your property on the market for sale, add this to your list of Columbia SC home selling tips: Go to the town hall or county courthouse (the source varies from state to state) and check the property records. You’ll find that many times solving issues such as open construction permits or errors on a piece of real estate can be fairly easy. Remember, it’s better to tackle a potential problem ahead of time before it could jeopardize the sale of your home – especially if it causes delays and the proverbial “domino effect,” creating additional problems down the line.
If there’s a larger issue or more complex problem, real estate experts suggest holding off listing your home for sale until it can be cleared up. For example, lowering your property assessment may take time to appeal and plead your case to the property authorities. Because of that, it may be best to get the assessment lowered first, then put your home on the market. A lower tax bill will, no doubt, be an advantage to your prospective buyers.
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The latest Columbia SC real estate news indicates recent employment gains could improve the price recovery of luxury homes on the market. During the first quarter of 2016, unexpected stock market volatility caused a decrease in luxury home values. Prices were able to recover slightly during the second quarter with an increase of nearly 1%, according to a nationally recognized real estate data firm. Luxury homes are typically defined as being in the top 5% of the highest-priced homes sold in each American city. Let’s look at the impact the recent job market improvement may have on luxury home prices.
Help For Luxury Homes? Columbia SC Real Estate News
The U.S. stock market took quite a tumble in June with the Brexit vote and the resulting repercussions throughout world markets. However, it’s rebounded considerably since that time and recent employment numbers are likely to boost the stock market even more. Economists expect the employment growth to aid the recovery in luxury home prices.
With this recent Columbia SC real estate news, analysts say the higher, luxury end of the housing spectrum is more sensitive to changes in the stock market. The reason is that homebuyers with higher net worths and incomes are likely to have more money invested in various equities than middle America. Some economists say the housing market, in general, can adjust and adapt to even large spikes or dips in the stock market. However, they say, there are some markets – especially those in high-value real estate areas – where volatility in the stock market has a very direct correlation to the luxury housing market. In those markets, what happens in the stock market is more closely tied to real estate transactions because homebuyers in that income segment rely heavily on market activity to produce down payments and other liquid investments. Plus, there’s often a resulting sensitivity from foreign buyers who would otherwise invest in high-end real estate. Global volatility and its effects on the U.S. stock market curb – at least temporarily – their interest in purchasing luxury homes in some major cities.
The improvement in the jobs report, some analysts believe, will make it more likely the Federal Reserve will raise interest rates during the year. While not directly tied to mortgage interest rates, a hike in the fed funds rate may signal an end to record-low mortgage rates. Despite the seemingly negative impact such an increase may have on most homebuyers, a mortgage rate increase will probably not affect buyers in the luxury home market. In the words of one real estate professional, “Luxury (home) buyers aren’t motivated by mortgage rates. As evidence, luxury home prices were sluggish in the second quarter even though rates were near rock bottom levels.” Real estate agents and economists alike say what matters the most to buyers in the luxury market is a solid investment opportunity that is likely to pay higher returns in the future – much like their investment philosophy in the stock market. So, if the employment results do spur growth in the economy, there could likely be an improvement in the luxury housing market, regardless of what happens to interest rates.
Regarding the Federal Reserve, some economists maintain there will be no increase in interest rates for the remainder of 2016. In addition, some feel that bond yields – to which mortgage interest rates are more closely tied – may move downward as a result of several other global market factors. One respected economist said, “Rate hike odds by year-end shifted from 32% to 40% after (the recent) jobs number.” That would mean the likelihood of the Fed increasing short-term rates would still lean in favor of that not happening.
Of course, the luxury housing market – like its counterpart at other points in the buying spectrum – still suffers from a lower than normal inventory. However, if higher prices return, investors and homeowners are more likely to put their homes on the market – especially if the stock market continues its return to normal levels – allowing them the opportunity to use those additional earnings to purchase newer or larger homes.
The unknown factor that could affect luxury prices is the upcoming presidential election. With that event occurring in the fall – coinciding with the normal housing market shift that post-spring and summer bring – there could be a leveling off of luxury home prices. Interestingly, however, politics overseas may increase luxury prices in some U.S. markets traditionally popular to foreign investors. Real estate analysts point to Miami Beach, Florida, for example, where luxury home prices rose roughly 22% during the spring quarter.
Economists and political pundits alike continue to debate what effect the U.S. presidential election results will have on the housing market in general. If history is any indication, little impact is expected for several months after the presidential election. Either candidate, including those that may be reelected or replaced in upcoming Congressional races, will individually or collectively need time to assess and change economic policies. While we will all likely keep an eye on Columbia SC real estate news on a regular basis, most analysts say the greatest likelihood for the real estate markets to be affected will lie in the hands of the American public and the perception that a win by either party will make a difference in their financial future. In short, human nature takes over and prospective home purchasers who are optimistic about the country’s economy will likely be bullish on home ownership – if the price is right – while those with a more pessimistic opinion will likely be more cautious until economic conditions improve.
The bottom line is the real Columbia SC real estate news is that it remains to be seen how the recent job gains and the November election will affect the housing market.
See more articles pertaining to real estate news in the section of articles on Columbia SC Real Estate News just below Columbia SC Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there, too.
The Columbia SC home buying market is comprised of prospects looking to buy. Some of them are empty-nesters planning to purchase their downsized “forever home.” Others are moving up, looking for a larger home in a more popular neighborhood. Still others may be shopping for their very first home, after weighing their options of continuing to pay rent versus building equity in a home of their own. Regardless of your motivations for entering the Columbia SC home buying market, we all want to make sound investments when purchasing real estate. Let’s examine a few ways you can increase the chances for making the right purchase.
Columbia SC Home Buying Market: It's an Investment
Most people who are looking to buy a home have at least a general idea of how long they plan to be in the home they will buy. If you’re planning to stay in your home for the next 5-7 years you’ll likely want to look at the buying process a little differently than if you were searching for a home in which to retire. It’s important for a shorter-term home purchase with a duration of 5-7 years to be positioned as a springboard for additional buying power for the next home you’ll want to buy. Here are a some suggestions to make this strategy a little easier.
Choose the Right Home
Select a home with better potential for a greater resale value. Start your home selection process with the first rule in real estate: Location, location, location. No matter how many improvements you may make during the time you’re living in your home, the one thing that will always remain constant is its location – good or bad. As you begin your home shopping adventure, compile information from a variety of sources. Many municipal government entities publish master development plans that can be accessed online. Researching them will give you an idea of upcoming projects like additional phases of construction in a certain neighborhood, road improvements or potential rezoning plans. Pay particular attention to the timeframes for any projects to determine if and how they may affect you if you purchase a home in that neighborhood. In addition, weigh the pros and cons of the proposed work that is planned. Will a new road near your neighborhood be a good thing or a bad thing? It may improve access, but it will likely increase traffic, too. With that in mind, here’s our next suggestion for making a good decision as you enter the Columbia SC home buying market…
Columbia SC Home Buying Market: Investigate the Neighborhood
You can gain a wealth of information by talking to the residents of a neighborhood in which you’re thinking of buying. Visit a nearby grocery store, park, or bank and strike up a conversation with the employees or patrons and ask how they like living in the neighborhood. As you drive through the neighborhood, stop and ask residents working in their yards or walking their dogs and ask about their likes and dislikes. Most people are more than willing to give their opinions to prospective neighbors. Armed with that information, try to determine if the neighborhood is at its prime, past its prime, or up and coming. Is it where you want to raise your family for the next 5-7 years?
Know Your Limitations
Once you find a house you’re interested in, assess what improvements need to be made. Next, be honest with yourself in your abilities to take on the projects necessary versus hiring a home improvement contractor. Remember this: Smaller improvement projects usually yield a higher return on investment – primarily because they are less apt to create budget overruns and completion delays. In addition, you’ll be faced with the age-old decision that many prospective homeowners face – are you prepared to invest the time, energy and sweat equity to perform the improvements, or should you pay more and hire a contractor? An even bigger dilemma may be whether you move on to a different house that’s more to your liking that may be more expensive.
Columbia SC Home Buying Market: The Return on Investment
If you’re thinking of buying a home and living in it for 5-7 years, we suggest stronger consideration be given to the return on investment. Why? Simply because most home improvement projects will be one-time only events. If your project ends up being a disaster and needs to be repaired or redone, you have less time to recoup your investment than if you were performing an improvement project on a forever home.
While you’re living in the home, keep in mind that any home improvement projects are done with one main goal – to provide a higher return on investment at a later date. Of course, you want to enjoy your time in the home, so we’re not suggesting you can’t make improvements that will increase your comfort level. However, any substantial improvements should be performed for what they may ultimately do for the home and its resale value.
Make Smart Choices
Once you decide on a house to buy, remember this Columbia SC home buying market advice. There will be, no doubt, a list of things around the house you’d like to repair or modify to fit your specific needs. Make sure you concentrate on the projects that increase the return on your investment. Remodeling Magazine’s Cost vs. Value Report from last year says the highest return on investment will probably be enjoyed on smaller projects designed to enhance the curb appeal of your home. Examples are replacing the front door, the garage door and exterior siding. Most exterior projects yield a nice ROI, and simple projects like painting, changing door or cabinet hardware or light fixtures can provide your house with a customized facelift – minus the high labor costs.
In summary, find a home with the best potential resale over the next 5-7 years. Have a plan of attack when it comes to neighborhood selection and improvements you want to make. Follow these suggestions as you enter the Columbia SC home buying market and you’ll probably be happier with your purchase – and your investment – when the time comes to sell your home.
Read more about home buying in the section of articles on Columbia SC Home Buying Tips just below Columbia SC Real Estate Categories in the column to your right. Remember, we also post tips daily on Facebook and Twitter. Check us out there, too.
Columbia SC mortgage lenders are anxiously awaiting revisions to the “Know Before You Owe” mortgage disclosure rules. The Consumer Financial Protection Bureau (CFPB) – acting on a promise made this past April – recently released updates to the rules in response to the mortgage industry’s requests for better clarity on the regulations. However, there are still nagging concerns regarding the secondary market, and those concerns will inevitably affect mortgage lenders’ ability to make loans that may not qualify for sale. Here’s a closer look at Know Before You Owe and what it means to the Columbia SC mortgage market.
Columbia SC Mortgage Lenders See Challenges Ahead?
The Know Before You Owe mortgage disclosure rule (also called the TILA-RESPA Integrated Disclosures rule) went into effect in early October 2015. Almost immediately there were serious concerns about how long it would take to close mortgage loans – causing a domino effect of problems for borrowers whose contracts called for timely closings.
While most of the initial wave of problems have been solved, one remaining issue has continued to plague mortgage lenders. The secondary market – where many lenders package and sell their mortgage loan investments to third-party investors, including government entities like Fannie Mae and Freddie Mac – is still experiencing issues with TILA-RESPA. In addition to the addressed changes to the rules below, the industry, at least for the time being, will be required to follow the original intent the CFPB issued saying, “examiners will be squarely focused on whether companies have made good faith efforts to come into compliance with the rule.”
The changes made by the CFPB include the following:
Tolerances for the total of payments. Prior to the enactment of the Know Before you Owe mortgage disclosure rule, the total of payments calculation and disclosure was arrived at by using the finance charge as part of the equation. The rule amended the total of payments calculation so that it didn’t make specific use of the finance charge. The CFPB now proposes to add tolerance provisions for the total of payments that are similar to tolerances in place for the finance charge and all disclosures affected by the finance charge.
The result? The change makes the treatment and disclosure of the total of payments consistent with how it was shown before the Know Before You Owe mortgage disclosure rule was enacted.
Housing assistance lending. The initial rule allowed a partial exemption from the disclosure requirements to some housing assistance loans that were originated primarily by housing finance agencies. The CFPB issued an update that would promote housing assistance lending by stating that certain recording fees and transfer taxes can be charged as a result of transactions while ensuring the partial exemption eligibility would still be in place.
The result? More housing assistance loans will likely qualify for the partial exemption. That, in turn, will probably encourage mortgage lenders to work more closely with housing finance agencies to fund these type loans.
Cooperatives. The CFPB proposes to have the rule’s coverage include all cooperative (co-op) units. In a cooperative, the purchaser becomes a shareholder in the corporation that owns the property. The buyer, by virtue of being a shareholder, is allowed exclusive use of a housing unit in that property. As it stands now, the disclosure rule covers only those transactions secured by real property. Real property is defined in individual states’ laws. As such, cooperatives are sometimes considered personal property and sometimes considered real property.
The result? The CFPB plans to simplify compliance by including all cooperatives in the disclosure rule.
Sharing information and privacy. The existing disclosure rule requires that creditors provide mortgage disclosures to the consumer. The CFPB has come under criticism and has received numerous questions regarding sharing the consumer disclosures with third parties to the transaction – including real estate brokers and sellers. The CFPB has decided it’s appropriate for creditors and others involved in the transaction to receive the closing disclosure.
The result? The CFPB is working on a separate disclosure form to the consumer and the seller to rectify what has been deemed a problem.
Columbia SC mortgage lenders in conjunction with the Mortgage Bankers Association (MBA) have expressed their appreciation in the CFPB’s efforts to update various parts of Know Before You Owe. MBA president and CEO David Stevens said the “regulation has a big impact on both borrowers and lenders, so it’s important that the Bureau and stakeholders continually reassess the implementation process to ensure its effectiveness. We look forward to commenting on the rule, and continuing to work with the CFPB to gain further clarity in order to improve this and other rules and regulations.”
In addition, the National Association of Federal Credit Unions (NAFCU), while appreciative of the DFPB revisiting the disclosure rule, remains concerned that the changes may not be as far reaching as they need to be. The NAFCU feels the CFPB hasn’t fully addressed the many compliance issues expressed by credit unions.
The CFPB has encouraged a wide range of input from its stakeholders – including Columbia SC mortgage lenders – and has invited public input on their proposal. Comments and information submissions are due in mid-October and will be thoroughly considered prior to final regulations issued.
What this may ultimately mean to the mortgage lending industry is this. In the absence of greater clarification on issues that are pertinent to the entities to which lenders sell their mortgage originations on the secondary market, some lenders will either choose to limit the number of loans they sell, or restrict their lending activity to only those loans that are easily marketable. Examples would be loans with lower LTV ratios or loans made to borrowers with excellent credit scores and high net worths.
However, most Columbia SC mortgage lenders remain confident the changes the CFPB will be sufficient enough to solve the nagging questions that currently remain regarding the secondary market. If that is indeed the case, the mortgage market will likely not be adversely affected.
You can find more articles pertaining to Columbia SC mortgage lenders and the mortgage market in the Columbia SC Mortgage Info section of our site below Columbia SC Real Estate Categories in the column to your right.
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The inventory of Columbia SC homes for sale continues to feature prices that have grown over the past year. According to the S&P CoreLogic Case-Shiller U.S. National HomePrice NSA Index, home prices increased 5% between May 2015 and May 2016. The growth in home values during that period and beyond prompted The Wall Street Journal to declare the increase as “further proof that the U.S. housing market had its strongest spring since the recession.” With that as our focus, here are five opportunities that higher prices may offer.
Higher Priced Columbia SC Homes for Sale Offer Options
Option #1 – Become a homeowner. If you’re in the market for a home, you may be pleased to know that the price growth seems to have slowed somewhat. While prices aren’t expected to drop, they have nonetheless leveled off for now. Stiff competition in markets with low inventory is expected to ease slightly as more homeowners will sell to take advantage of the higher prices. Zillow forecasts that home prices will continue to rise, just not as sharply as in the past year. Zillow predicts prices to rise around 3% or less in the next year.
With interest rates still at near-record lows, it could be a great time to buy the right house. However, economists issue these words of caution. Be careful taking on debt – especially mortgage debt. Many economists predict the U.S. could have another recession in the not-too-distant future. In addition, you could lose your job, become injured or temporarily be unable to work. They suggest following these guidelines:
• Keep your housing costs between 30-35% of your gross monthly income
• Don’t get overextended or use credit cards for purchases
• Always maintain an emergency fund that would pay a minimum of three months (six months is better) of living expenses
Option #2 – Move up to a better home. As home prices rise, many homeowners are finding they are no longer underwater on their mortgages. When they were underwater, they were unable to sell – contributing both to the lack of inventory and to a slower recovery. Homeowners who are no longer underwater find themselves with a much better opportunity to sell their homes and potentially buy a newer, bigger or better one. As this happens there will no doubt be an increase in the number of Columbia SC homes for sale in the marketplace.
Option #3 – Take out cash. Many homeowners with median-priced homes have enjoyed equity increases of $10,000-$15,000 or more during the last year as a result of rising home prices. This has prompted millions of homeowners throughout the U.S. to refinance their mortgages or take out a home equity line of credit (HELOC.) Homeowners are tapping into their cash equities for a wide variety of reasons ranging from home improvements to paying for college, or for paying for things like vacations or boat purchases. One suggestion to be mindful of, however, is to leave a good amount of equity untouched when you borrow. That way, if there’s ever another substantial price drop you’ll be assured you won’t suffer a negative equity position and be underwater.
Option #4 – Take the money and run. Some homeowners see the rising home prices as an opportunity to cash out – to take the money and run. In the hottest markets where prices have risen higher than the norm, it represents the proverbial “My ship has come in” scenario to homeowners ready to retire and use that newfound money solely for that purpose. While such an option is rare in the case of most American homeowners with median-priced homes with mortgages, it is still a possibility.
Option #5 – Don’t do anything. Homeowners who are content and don’t really see an advantage in making a move of any kind will continue to enjoy the ride the rising prices are providing. The chances are pretty good that home values will continue to rise – even if at a more gradual pace than we’ve seen in the last year. When that continues, not only will the other options always be available, home equity will continue to grow and it will be accessible when the time comes.
Regardless of what you decide to do with the options available, Columbia SC homes for sale provide homeowners and purchasers alike opportunities in today’s real estate market. Rising prices create a market that appears to be growing and thriving, making a welcomed and noticeable recovery from less than a decade ago. While there are still inventory challenges with demand exceeding the supply of homes for sale, some analysts are confident the recent price gains will help improve that situation.
In summary, as Americans, we’ve always been told that real estate is a good investment – and, for the most part, that’s still very true. Homes and real estate purchased at the right price and in neighborhoods and markets that are stable or on the rise will likely always be a sound investment over time. As you consider purchasing one of the Columbia SC homes for sale, enlist the help and advice of a real estate professional. They know the market and the neighborhoods, and they know what the price ranges are for comparable sales of homes you may be interested in. More than anything else, buying a home in a good neighborhood at a fair market price will give you the best opportunity to build equity over time. Overpaying simply is not – and shouldn’t be – an option. We know of no bigger “dream-killer” than paying more for a property than it’s worth, and then being disappointed because you can’t sell it for what you need at a later date.
See more articles pertaining to Columbia SC homes for sale in the two sections of articles on Columbia SC Real Estate and Columbia SC Homes for Sale just below Columbia SC Real Estate Categories in the column to your right. Remember, we also post tips daily on Twitter and Facebook. Check us out there too.