Columbia SC homes for sale represent opportunities for home buyers and real estate agents. And the better the relationship between the buyer and the real estate professional, the more likely a successful and enjoyable outcome will be. As in other relationships in business – or life in general – being on the same page is important, and can be critical in finding a home that best meets your needs and your budget. Let’s take a closer look at what it takes to build a winning relationship between a buyer and a real estate agent.
Columbia SC Homes for Sale – Teaming up for Success
Quite naturally, times have changed and partnering with a real estate professional today is different than it was, say, thirty years ago. A generation ago a prospective buyer rode by Columbia SC homes for sale and saw a sign or read an ad in the newspaper. Then they may have called the real estate agency to get additional information and schedule a visit or find out when the next open house was going to be held.
These days, prospective home buyers replace much of the time in the car riding through neighborhoods with searching online, looking at digital photographs and often taking virtual tours of Columbia SC homes for sale.
A quick click of the mouse, a short text or an email request for more information can be almost instantaneous.
The real estate agent’s part of the equation has changed, as well. Many times the first contact is made online via a smartphone, tablet or desktop computer. For younger buyers, texting is a common form of communication. However, agents often continue to spend countless hours in their automobiles driving prospective purchasers from house to house. Despite the untold amount of time an agent may invest in a particular client, there’s no guarantee the client will buy anything. Since real estate agents are almost always commission-only independent contractors their time is money – and if they spend too much time showing homes without sales, they’re actually losing money. While that’s part of the proverbial “cost of doing business,” it can be frustrating and disconcerting to an agent to spend hours of their time with clients and have nothing to show for their efforts.
So, if the agent and buyer relationship is so important, who’s responsible for what? Should the prospective buyer be clear in the early stages of the home search and tell the agent if they’re just looking and aren’t seriously ready to buy yet? Is it the agent's responsibility to have better time management skills and qualify their potential clients?
Let’s look at both sides of the relationship.
Ultimately, the real estate agent is in business to assist prospective buyers – regardless of where they are in the home buying search process. A buyer that’s pre-qualified for a mortgage may be more serious than somebody just riding around looking at various houses and dreaming of what they may buy someday. Again, from a real estate agent’s perspective, all buyers have to start somewhere and a little “hand-holding” upfront is the cost of doing business – and, in many cases, may pay off in the long run.
Prospective borrowers also have to be cognizant of their intentions and should display certain respect for the time and energy their agent is investing in hopes of making a sale. At the end of the day, the best budding relationship between the agent and the buyer looking at Columbia SC homes for sale is one based on mutual respect. The agent should respect the buyer’s lack of knowledge in how the process works and the time it takes, and the buyer should respect the agent’s time constraints and the fact that he or she has other clients that may be further along in the home buying process.
Buyers should be encouraged to continue to shop online and to begin to narrow their search to a specific number of neighborhoods or a certain price range. Buyers who are pre-qualified for mortgage financing have also taken a big step at being better prepared when they find a home that meets their needs.
Agents need to be reminded that a single text, phone call or email doesn’t necessarily mean a buyer is ready to start the home buying process. Experienced agents will ask the prospective buyers questions that will give them a barometer as to their level of interest. In turn, that will save both the agent and the prospect considerable time prior to and in anticipation of a serious home search. A good real estate agent has a mix of clients in various stages of the home buying process.
The bottom line for a agent / buyer relationship is a mixture of give and take that ultimately results in a good fit for both parties. Remember, the ultimate goal of both the agent and the buyer is the same – for the buyer to find a home that will result in a satisfied customer. If both parties enter into the relationship with that goal in mind, the chances of enjoying a successful outcome are pretty good.
See more articles pertaining to homes for sale in the section of articles on Columbia SC Home for Sale 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 real estate market is like that of other parts of the country. No doubt you’ve heard that home inventory is low and people choosing to sell are in the proverbial “catbird seat.” The basic economic principle of supply and demand is never more true than in a seller’s market – where supply is low and demand remains relatively high. However, is it the right time for you to sell? This article will examine that question and help you avoid seller’s remorse. Although we never work for sellers or list property for sale and always represent home buyers only, we know and can find the very best listing agents anywhere to help you with selling your home.
Columbia SC Real Estate: Should You Sell?
As is the case in most seller’s markets, it’s not unusual for homes in some areas to sell for more than the asking price. Anxious buyers with little to choose from often provide sellers with multiple offers – and a few prospective buyers may even get in a bidding war to get the home they want. Because home prices are so high, some real estate agents are trying to get potential sellers to list their homes for sale now.
Sure, it seems like a wonderful time to sell… but how do you know if it’s really a good time for you to sell? We’re all familiar with the phrase “buyer’s remorse,” the feeling that you may experience after you’ve bought something and are having second thoughts or sensing you made a mistake in judgment. In the case of homes under contract for sale, a prospective buyer can usually get out of the deal by using contingencies or other clauses that may provide him an “out.” “Seller’s remorse” is just as prevalent, but in most cases there aren;t contingencies that protect the seller. So, it’s important that you’re ready and committed to sell before you sign the sales contract – actually, before you list your home for sale.
To help you avoid seller’s remorse and enable the sales transaction to be as seamless as possible, remember the following Columbia SC real estate strategies.
Devise a Good Pricing Strategy
Naturally, a good real estate agent will encourage their sellers to list their homes competitively to ensure it’s received favorably in the marketplace. While some skeptical sellers may look at their agent’s recommendation as pricing their home low for a quicker sale, the agent is really looking out for the seller’s best interest.
Regardless of what the situation holds, a discussion about pricing strategy should be the most important part of the relationship between seller and agent. If there are issues on the asking price, it could set the tone for a rocky relationship. As a seller, should you find yourself in the position of disagreeing with your agent’s recommended price, you should discuss the options or, if necessary, get a second opinion on pricing.
You could list your home at first with a higher asking price. It may be against your agent’s advice, but if it makes you feel better it may be worth a try. However, be smart… if there’s little or no activity in the first two weeks, reduce the asking price. Our best advice is to listen to – and trust – your listing agent. After all, they’re the professional, not you. Either way, remember this: If you aren’t prepared to have a good long discussion on price with your Columbia SC real estate agent or if you’re wavering on the listing price, follow your instincts and realize you may not actually be ready to sell yet.
Plan for What do to After the Sale
We recently heard a story regarding the sellers of a home who decided to sell because their local market was enjoying higher than normal sales prices. They had previously tried to sell their home just six months earlier, but with no success. As they prepared to list their home for a second time they performed a variety of work. They had the home painted, they made necessary repairs, and had even put some of their excess belongings in storage to make their home more presentable to prospective buyers. Going on the Columbia SC real estate market, for them, was easy.
What the sellers of the home didn’t expect, however, was three offers within a matter of hours following the first open house showing. All three offers were more than the asking price. The buyers the sellers chose wanted to close the sale in thirty days. Ordinarily that’s a great combination – a sales price higher than the asking price, and a closing date in a matter of a few weeks. However, there was just one small problem: The sellers, once they moved, had nowhere to go. Due to poor planning – or a lack of a plan altogether – these sellers achieved what they set out to do, but failed miserably on the next step of what to do after the sale. Let’s continue to read what happened next.
Prepare to Negotiate
The new purchasers decided to try to see if they could arrange terms that would better suit their situation. The listing agent was able to negotiate a quick close including a 30-day-free rent-back arrangement, and an additional 30 days rent in which the sellers agreed to pay the buyer’s PITI payment. With the aid of quick thinking and good negotiating, the sellers and their agent were able to come up with an arrangement that was a “win-win” for both parties.
The lesson here is to be prepared to negotiate what you – and the other party – may want or need to have a successful sale.
In Doubt? Stay Out!
Homes can sell fairly quickly in the Columbia SC real estate market. Of course, that’s good news for the housing market. However, sellers should plan for their sale several months in advance. It should rarely, if ever, be a spur of the moment decision.
Utilizing a knowledgeable real estate agent early in the planning process is a good first step. Your agent can walk you through what you should do and what to expect. Lastly, here’s one simple, but vital piece of advice. If you are in doubt about whether to sell, if you have concerns about your physical, emotional or financial abilities in preparing to sell, or if you have any hesitation at all – don’t list your home yet. You can always enter the Columbia SC real estate market at a later date when and if the time is right for you.
You can find more articles pertaining to home selling tips in the Columbia SC Home Selling Tips section of our site below Columbia SC Real Estate Categories in the column to your right.
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The Columbia SC mortgage market probably contains a number of borrowers and prospective borrowers who would be considered affluent. As such, one would assume people who have lots of money, large assets and high net worth would almost automatically qualify them for a jumbo mortgage. If you assumed that, you'd be wrong at least some of the time. Some affluent borrowers still face considerable challenges when it comes to their credit scores. Let's look at how low credit scores can affect even the rich in meeting the qualifications for a mortgage.
Columbia SC Mortgage Market – Credit Affects Us All
The well-known credit reporting agency, Experian, recently released a survey showing that 40% of respondents who earn $100,000 or more still worry their credit score will adversely affect their ability to buy a home this year. In addition, 29% of those surveyed reported they were in the process of improving their credit scores to qualify for better terms on a home mortgage loan. The Experian survey was based on data collected back in February from 500 affluent borrowers or would-be borrowers who recently bought a home or were planning to buy within the next year.
While the average American may find it hard to believe that affluent borrowers – or anybody that earns $100,000 or more annually – could ever have credit problems, credit issues can affect anybody.
Columbia SC mortgage market lenders say the minimum credit score is 720 to get the best jumbo rates and loan terms. Jumbo borrowers with credit scores below 680 are among those who begin facing serious qualification challenges. Some lending institutions may choose to qualify a borrower with a slightly lower credit score under two major conditions. First, the borrower must have income and assets that help offset the lower credit score and, second, if the lender is able to keep the jumbo loan in its in-house lending portfolio. Jumbo mortgages are loans in excess of $417,000 in most markets and $625,500 in select high-priced markets – the limits for the government-backed mortgages.
Ironically, wealthy borrowers often don't even realize they have credit challenges. For example, many affluent borrowers assume their credit scores will remain high if they pay off high balances each month. However, credit reporting agencies also judge the credit management practices of borrowers to ensure they are able to handle credit accounts without becoming financially overwhelmed. In addition, despite their wealth some affluent people just don't worry enough about their credit accounts. While it's a great feeling to know you have credit balances that can probably be paid in full anytime, by not paying attention to payment due dates or late fees, any borrower – regardless of their income or net worth – can run into credit problems that may follow them forever.
An Experian credit specialist said, “It doesn’t matter how much money you have, it really is about how you manage your credit. For the best score, people should limit usage to less than 25% of each entire credit line."
Another problem that often affects affluent borrowers is shared credit obligations. A spouse, for example, who has credit issues that remain unresolved – and unconfessed – can be a proverbial curve ball that can threaten approval of a loan application, not only in the Columbia SC mortgage market, but nationwide as well. If unpaid bills create a problem, that problem can normally be solved by paying the bills in full and using a "rapid re-score" service. Mortgage lenders must request the re-score, which typically costs around $25 per account and can take place in 4-5 days.
New credit-reporting rules that go into affect this summer may also benefit affluent borrowers. The government-sponsored Federal National Mortgage Association (Fannie Mae) buys loans from mortgage lenders and sells them as mortgage-backed securities. They have recently added "trended credit-data reports" as part of their automated underwriting system, to be released into the Columbia SC mortgage market June 25.
Existing credit reports only show the outstanding balances of each account. Therefore, on mortgages, car loans or credit cards the credit report shows what's owed and whether the account holder has made payments on time or late. Under the new system, credit reports using trended data will give the lender more information. While the scoring method itself remains unchanged, the lender is provided with additional data such as the scheduled payment and actual payment amounts over time to better enable lenders to rate how borrowers use credit cards. For example, does the borrower pay the balances in full each month or does he make only the minimum payment?
While the new credit reports from providers TransUnion and Equifax will apply to government-backed mortgage loans, jumbo lenders will probably use them, too. Credit experts say this will give affluent borrowers with high net worths to show their ability to pay despite having high account balances.
You can find more articles pertaining to the Columbia SC 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 Columbia SC home improvement market is dynamic. While mortgage interest rates have remained at comparatively low levels for the past few years, it's tempting to assume more people are buying new homes than are renovating or remodeling their existing homes. However, remember this: Because interest rates are so low, home equity loans and complete refinances continue to be popular ways for home owners to pull money out of their properties to make improvements. This article will examine that trend and what it means to the real estate marketplace.
Columbia SC Home Improvement is Popular
No doubt you've heard and read about the relatively low housing inventory in the current real estate economy. Because of the scarcity of affordable available housing in many markets throughout the country, prices have risen consistently in the past year or two. New home construction is underway in a number of regional markets, but new home sales prices have also spiked as builders and developers have to pay increasingly more for land, labor and materials.
Many home owners across the U.S. have enjoyed equity growth in their homes. This growth, coupled with the short supply and rising costs of new and/or larger homes, have caused these homeowners to put off – at least temporarily – the idea of moving into a new neighborhood or "trading up." Instead, a growing number of American home owners are opting to renovate or remodel their existing homes. If you're thinking of entering the Columbia SC home improvement market, you're not alone.
Recently, home improvement giant Home Depot – the largest home improvement retailer in the world – reported their sales for the first quarter of this year. Not surprisingly, their sales of $22.8 billion represented a 9% increase over the same period last year. In addition, the chain's online sales also increased more than 20% boosting the store's net earnings to just over $1.8 billion, exceeding last year's totals by 14%.
To what does Home Depot attribute their recent increases?
Craig Menear, Home Depot CEO, says some of the success is due in part to the sluggishness of the new-home purchase market. Armed with recent housing data showing lower than expected building permits issued and housing starts provided by the Department of Commerce, Menear said, "Housing data indicates continued tailwinds for our business," indicating at least a short-term forecast of much of the same for Home Depot.
So what does Home Depot know that we don't? Probably plenty.
A deeper analysis of the recently reported numbers will likely show an anticipated strategy for both Home Depot and home owners contemplating taking on Columbia SC home improvement projects.
Building permits in April reflected a seasonally adjusted annual number of 1.12 million. While that figure represents an increase of 3.6% above the revised March rate of 1.08 million permits, it's still more than 5.3% below that total from April a year ago.
April housing starts were at a seasonally adjusted annual rate of 1.17 million, which is 6.6% more than the revised March projection, but it's 1.7% below April 2015's annual rate of 1.19 million housing starts.
The bottom line: The pace of new housing compared to last year has slowed.
While some economists continue to be optimistic, saying the overall housing demand – including pent-up demand from first-time home buyers who've seen their rents increase steadily each year – will rise gradually. In addition, say these economists, home builders are becoming increasingly confident about their sales forecasts.
Others feel homeowners who may be reluctant to sell for fear of not having a suitable, affordable place to move to will be content to stay put and consider renovations or home additions until the market changes. After all, they've seen their properties increase in value, and with the right Columbia SC home improvement choices for their home, there's no reason to think the value won't continue to go up.
It appear's Home Depot is banking on the same strategy – in a big way. Their earnings reflect a feeling that home owners will remain in their current houses at a high enough rate to sustain their continued growth expectations.
From the first quarter of 2015 through the same period in 2016, Home Depot's total assets grew more than 6%. Experts point out that for a home improvement retailer that's a significant increase because it includes merchandise and materials in inventory, in addition to property and equipment. Simply put, analysts say, Home Depot is stocking up.
In another potentially telling move, the Economic & Strategic Research Group of the Federal National Mortgage Association (Fannie Mae) readjusted their 2016 economic growth forecast to 1.7% growth, a decrease from their prior forecast of 1.9% growth and the 2.2% level predicted at the beginning of the year. However, Fannie Mae feels the slowdown will be temporary and short-lived.
Fannie Mae 's chief economist Doug Duncan said, “Home sales are expected to pick up with the spring and summer seasons in full swing, amid the backdrop of declining mortgage rates, rising pending home sales and purchase mortgage applications, and continued easing of lending standards on residential mortgage loans. “Meanwhile, the homeownership rate showed signs of stabilizing during the first quarter of this year, as the relatively high homeownership rates among Baby Boomers have helped offset low homeownership rates among Millennials, many of whom remain on the sidelines due to ongoing affordability issues,” he added.
In the meantime, home owners will probably do what Home Depot thinks they will do – improve their existing home until the market can give them something more attractive and more affordable to move into.
You can find more articles pertaining to home improvements in the Columbia SC Home Improvements section of our site below Columbia SC Real Estate Categories in the column to your right.
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The Columbia SC home buying market offers a number of options. With sales of new construction last year surging to the highest level since 2007, single-family home production is projected to reach 840,000 units this year. That represents an increase of 18% over 2015, according to the National Association of Home Builders (NAHB). The challenge for home buyers, however, is new residential construction comes with a higher price tag than ever. The NAHB reports that in 2015 the average price of a newly-constructed home rose to $351,000 – an increase of over $100,000 from 2009. If you're thinking of buying a new home, there are several things to know and questions to ask. Let's examine them.
Columbia SC Home Buying: Know "New"
While prices are indeed high for new construction, there are still ways you can save if you're looking to buy a new home. Real estate experts say it's similar to shopping for a new auto – the correct strategy will likely produce the best results.
When you're new home shopping, ask the home builders these six questions to find the best home for you – at the best price possible.
1 – "If I use your preferred lender and title company, what financial incentives can I expect?"
While production or "cookie cutter" builders are sometimes slow to set a precedent by negotiating sales prices, custom builders are often more open and flexible.
Home building experts offer this example as an explanation. Say a new home is listed for sale at $375,000 and sells for $365,000. The next prospective buyer in the development will expect to pay no more than $365,000 – the most recent comparable sale. As a way to keep the playing field level while maintaining the best margins, many builders may offer attractive incentives to home buyers who agree to use their preferred mortgage lender and title company. In addition, some home builders may even pay as much as $10,000 in closing costs. Still others may propose upgrades in the home such as more upscale granite countertops or hardwood flooring.
While you're shopping for a new home in the Columbia SC home buying marketplace, experts suggest you should get additional quotes from a minimum of two other lenders before making a decision. However, look past just the interest rate being offered. Compare the terms of each lender to ensure the loan estimates are comparable.
2 – "What are the standard finishes?"
Most model homes available for personal tours by prospective home buyers represent an upscale or higher-end version of the standard floor plan. It's important to find out from the builder or his representative which of the options are standard, what the upgrades are, and how much cost difference is. The bells and whistles shown in the model home are there for a reason – to pique your interest – but they usually cost more.
Some savvy buyers have found success using this strategy: They purchase the home and move into it without the upgrades. Then, at a later date, they hire a subcontractor to perform the desirable upgrades. Most home builders charge a substantial markup on some finishes and product types. For example, the new housing development's builder may charge $4,000 to $6,000 for a quality, high-performance HVAC unit. With some research and negotiation, you may be able to hire another company to install the same unit for roughly 50% of that cost.
The downside, of course, is that by using a third party after you move in you'll be responsible for paying for the upgrades out of pocket. For many borrowers, one of the biggest advantages of having the builder do the upgrades is that they can be financed into the loan amount and amortized along with the monthly payment.
3 – "What are the long-term plans for this community?"
Once you enter the Columbia SC home buying arena, you'll readily see that in cases where there is sufficient land, a successful home builder may be planning to build additional phases of an existing subdivision development. Often, this may affect your decision to buy. Here's why:
Let's assume that in a particular development only a handful of new homes have been built and sold. If the builder plans to develop an additional 50-75 homes and you and your family decide to buy and move in, guess what? You will inevitably have to endure construction noise, added traffic and potential debris for months to follow. In addition, there's always the chance that the original builder is unable to continue building in the development and a new company takes his place. If the quality of the workmanship suffers as a result of the builder change, that may adversely affect your home's value.
4 – “What are the HOA rules and regulations?”
Every HOA is different. While they all have Declaration of Covenants, Conditions and Restrictions (CC&Rs) as well as bylaws, what those items contain will vary from place to place. If you're looking for a new home in the Columbia SC home buying market, be sure to get a copy of that information from the builder or development's representative and review them closely. If you want to have a private fence, a backyard storage shed or a doghouse you may want to check the HOA restrictions. Some HOA'S don't allow for those – and other – items. Ignorance of the bylaws will not excuse you from being assessed a penalty for non-compliance. In addition, be sure to find out when your HOA dues will commence. Many builders cover the HOA costs until a certain percentage of the development's homes (usually 50%) are sold.
5 – “What construction warranties do you provide?”
While most builders usually provide a one-year workmanship warranty and a 10-year structural warranty, warranties can vary. Be sure you know what your warranties cover and don't cover. Also, have a clear understanding for what the damage limitations are. Additionally, be sure to get manufacturer's warranties on your washer and dryer, hot water heater, HVAC unit, all kitchen appliances, and your home's roof.
6 – "Can you provide me with a list of your previous clients?"
As is the case with auto mechanics, dentists or even hairstylists, we all feel more comfortable dealing with people who come highly recommended. It's the same with builders in the Columbia SC home buying arena. Have the builder provide you with references and contact each of them. Ask them questions like, "Did he solve any issues that arose in a timely and satisfactory manner?" and "Would you do business with the builder again?" Remember this, however, it's human nature to only provide the names of references that will give us positive reviews, so be smart – see if you can find past customers of the builder on your own. Checking online for reviews on Angie's List, calling your local Better Business Bureau or area Homebuilder's Association, or going door to door and canvassing the homes previously built in your neighborhood may also provide additional information.
See more articles pertaining to home buying tips in the section of articles on Columbia SC Home Buying Tips 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.