What are Buyers Thinking?

Isn't it funny. I just had a buyer back out of a deal, an investor, that was not happy that he could only get a 6.75% fixed rate mortgage on a 7 year fixed for a non-warrantable condo. WOW are people spoiled nowadays!! They are going to walk away from $1000 earnest money deposit because they wanted a longer term fixed rate mortgage, what are they joking? they planned on only owning the unit for 2 or 3 years and since they can't get a 30 year loan they are going to lose a $1000? does this make sense to anyone?

I remember when I would love to be able to get (and still have some loans at) 9% on an investment property, and to find someone doing long term fixed rates was impossible to find. It was hard to make things cash flow but you knew if you were buying it right it would work out in the long run. Many of those properties that I bought were in the $30 to $50k range that are now worth (even in today's market) in the $150 to $250k range, amazing, and what if I would have backed out because I didn't like the rate?

Investing in Real Estate and making millions is not easy, if it was everyone would do it. It is hard work and takes guts.

Right now is the best time that I have seen in Charleston to buy real estate in the past 10 years for long term investment, you can still get good financing (see 6.75% rate above) and you can get really good rent as a lot of buyers are either having to rent now because of the credit crunch or they are choosing to because of the media. Either way you can get more rent now than ever and vacancies are far and few between. And, the last big reason to buy now is that you can buy for a sharp discount.

The property that I referred to in the opening lines is a townhouse on James Island, it is not a foreclosure but just a good deal, the seller paid $156k for it about 2 years ago and is now selling for $96,000, that's right $96,000. The last unit to sell in this comlex sold for $125,000, so it is a deal. I personally own 4 (used to own 9) of these and they stay rented, I paid $90k as a package deal years ago and sold several off for $125k over the years.

This area, Dove Run, is minutes to the Beach and to Downtown Charleston and is surely going to rebound when the market prices come back and will be worth $150k again, then you can flip it and make $40k or so after all expenses, where else can you do this and get income from the tenant the whole time you own it?

I guess I am confused by buyers that are in the market now, we had another one the other day on James Island, a 50 year old house that had been renovated, when the buyer had the inspection they found a few things wrong (duh, this is a 50 year old house), they sent a copy to the seller and the seller said no problem we will pay to fix and and all repairs and have them done by closing or whatever the buyer chose, well this @$&%$%^^ buyer said that they wanted out of the deal and since they did not have a valid reason the parties agreed that she would forfeit half her earnest money or $1500, she also paid for the inspection and an appraisal, about another $600 total, so she lost $2100 and for what? because the seller said they would fix or pay to fix any and all items found on the inspection? can anyone make sense of this?

Well sorry to go on and on but I was just wondering if anyone could shed some light on what people are thinking and where their reasoning comes from? Rates are at all time lows, inventory at all time highs, rents at all time highs, Charleston's economy is expanding and actually booming(have you seen on the commercial construction going on?). Until next time, see you on the water, David Wertan & The Wertan Team of Re/Max Advanced Realty of Charleston, SC

Guaranteed Sale Program

I don't know if you have heard my commercials on the Bob & Tom Show on the radio here in Charleston or on the country channel on the Gary Griffen Show, but if you have you probably have been wondering how we can offer a Guaranteed Sale Program.

The reason that I am able to do this is that we are confident that we can sell any home that is priced right and is marketed properly given a reasonable amount of time.

So far this program is working great for us and our clients, we have had numerous people call and list their homes and we have been able to get them all sold.

The real estate market in Charleston, SC, is alive and well, we have had some slower areas and some sub-markets of Charleston are still experiencing a glut of homes, but overall the market has returned back to a normal market and by normal I mean if a home is properly priced, in the condition it needs to be to support the price and properly marketed, it will sell.

If you or anyone you know is being told otherwise by their Realtor, than maybe they need a change, call me directly on my cell or a member of the Wertan Team at 843-330-2500.

thanks, David Wertan of Re/Max Advanced Realty 843-270-6455