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

2008 Sales Off to a Good Start

As you may or may not know rates are really low, you can get 30 year fixed rate at 5.75% !! Many buyers are taking advantage of this and the lower prices and have started coming out and buying homes in 2008.

The first quarter started a little slow but has since picked up. We have had several properties sell within the first week or two of listing, a couple of multiple offer situations and even one property that sold for full price the first day it came on the market.

We are still getting a lot of inquiries about foreclosures and short sales, etc, and have been working on several. They require a lot of work and a lot of patience but can be worth it in the end. Foreclosures are still not as prevelant here in Charleston, SC, as they are in other parts of the country but we are seeing more of them come on the market. When I did a search for foreclosures (bank owned) properties the other day there were 64 of them in our mls out of some 10,000 homes for sale.

Some agents don't know how to put Bank Repo's in our system so this number may be a little low.

Remember we offer our Guaranteed Sale Program where if we don't sell your home in 120 days we will buy it for CASH !!

Also, when it comes to marketing we are second to noone in the Charleston market, we spend a ton of money and advertise our listings on over 19 different websites, including the # 1 real estate company site in the world, which is www.remax.com.

Stay in touch and let me know if you know of anyone that wants to buy or sell a home in 2008, thanks, David Wertan of Re/Max in Charleston, SC www.DavidWertan.com

Foreclosures & Short Sales in Charleston, SC

I have been asked a lot recently about foreclosures in the Charleston market from buyers looking to buy real estate in Charleston and have been asked from sellers to explain short sales. So here are answers to both questions.

First, foreclosures in Charleston, SC, are not what they are around the country, homes are still affordable here and the job market is booming, the economy is kicking butt, so most sellers are able to sell their homes before they run into foreclosure problems. Nonetheless, there are some foreclosures in Charleston and there are also a lot of people that did not pay much for their home that are able to discount their home and sell it at some incredible prices to move it quickly. I would recommend that you look at all homes for sale in your price range, estate sales, foreclosures, bank reo properties, handyman specials, etc, etc, and look for the best deal that you can find and buy it NOW while rates are down and the market is flooded with inventory.

Second, is about short sales, what are they and how do they work. Basically, a short sale is when a seller is in foreclosure or about to be in foreclosure and they owe too much on their home, in other words, they owe more than it is worth. The real estate agent can then communicate this to the mortgage companies and get them to take less than they are owed to get the property sold. The benefit to the seller is that they do not have a foreclosure on their credit record, true they have late payments but that is easier to overcome than a foreclosure and the stigma that goes with it. A short sale is very benefiicial to the bank as they get their money much sooner with less hassle, even if they have to lose some it is better than losing more later when the property is vacated and goes into a state of disrepair and is sold as a bank repo.

If you have specific questions or comments don't hesitate to contact me anytime, Sincerely, David "the real estate man" Wertan & The Wertan Team of Re/Max in Charleston, SC

The Secret / Real Estate Trading Back in Style?

I was just thinking about a few deals that I closed in the past couple of weeks and how they came about. If you are familiar with the book "The Secret" than you will love this, if not you may want to check it out, it is a great book, easy to read and to apply in your daily life.

First, I decided that I wanted to get a new boat, I have always loved fishing and chartered often. I researched and determined what I could afford and what I really wanted in a boat, size, age, amenities, etc, and determined that I wanted a 1996 or so 48 foot Ocean Yacht. I pasted a photo of the new boat on my wall and made it my background on my computer, etc. People would ask if I got a new boat, and I would explain that no this is going to be my new boat, they would ask when, and I would explain that I dont' know when or how it will come about but I know that it will, maybe in a week maybe in a year or two or ??

Well shortly thereafter I ran into a friend that is a Yacht Broker at a fishing tournament and he was on the same boat at Bohicket Marina, and he gave me a tour. I told him that I was going to buy this same exact boat one day. A week or so goes by and he calls and says he found one, I explained that the only way I could buy it now was if the seller would trade for real estate. Well that boat did not work out, but through that connection I was able to locate a boat where the seller (a friend of my brother's) would trade for real estate.

We worked out a deal, all I needed to do was sell my boat, the WerTannin a 37 foot Searay that I have had for a little over 5 years. The first person I talked to about it said they would love to buy it.......but.....they would need me to take real estate for trade.

So, we worked out a deal, and in the end, last Wednesday I became the proud owner, with my friend Mike Smith of Top Pryority (thinking of changing the name) a 48 foot Ocean Yacht Sportfishing boat and also I traded my boat for a 1/2 acre of vacant land in Summerville on a main thoroughfare that I now have for sale for more than I wanted for the boat in the first place.

A win win situation. I think that this is a great way to make things happen in this market in Charleston where the homes are selling but at much slower pace. Many times people are looking to sell and buy a larger home, well maybe they should see if they can trade it to a seller that knows it is easier to sell a less expensive home (or maybe they could even rent it out until the market rebounds?), either way they would get out of that large mortgage and be able to move on with their lives and enjoy their new home in the process. Just an idea, but I think one that would and could work with open minded people.

Write your thoughts back if you have any interest of comments that are relevant, take care, David Wertan

Just Returned from National Realtors Convention in Vegas

If I learned nothing else, I learned that everyone in the US and most places around the world are in the same boat that we are in Charleston, some a little worse and a few (very few) a little better. We are all in a pretty good real estate market, for example over 10,000 homes have already sold and closed in Charleston this year and we have 2 more months of sales to post yet.

The media is making it sound like everything is doom and gloom, but it is just not true. Rates are down, our economy in Charleston is kicking butt and people are moving here from all over. I just closed a deal with a nice couple that moved here from Alabama, and had 3 of my listings sell while I was in Vegas at the convention.

and, yes I did lose some money on the blackjack table. Stay tuned for next weeks update on more specifically what I learned in Vegas. Thanks, David "the real estate man" Wertan of Re/Max