National Flood Insurance Program

Quite frankly, I thought the 3rd time would be the charm, but no.......... Once again Congress failed to extend the National Flood Insurance Program and again this has caused delays in closings. The National Flood Insurance Program provides federally backed and affordable flood insurance coverage for millions of homes and businesses nationwide. Here on the coast lender's require flood insurance as part of the loan, much like they would traditional homeowners insurance. By some estimates, this failure to extend the program has caused the delay of approximately 1400 properties daily across the country.

Until the program is reauthorized, buyers cannot obtain the insurance, however in some cases they are able to assume the seller's policy. So why am I writing about something negative in the real estate market? Quite frankly because we need help. It is certainly not news that the real estate market has suffered dramatically over the last several years and here in the second home market it is no different. Many people have asked me why we are suffering because the second home market is just another luxury of the rich. On more than one occasion I have heard something like "rich people will buy in any market". That's just not true.

Beyond the proclivities of the people with significant discretionary income, let's think about what these second and retirement homes mean in the broad picture. In my opinion, they are the basis for a big part of our economy and a source of livelihood for our middle class. Think of the carpenter doing the framing on the house, think of the irrigation company installing the system, think of the washers, dryers, refrigerators, tv's etc. being purchased and installed, think of the restaurants that are being patronized, think of the home improvement stores selling all manner of merchandise to a new home owner and the list goes on and on and that is precisely why we (those of us making our living in the housing market and the sellers trying to sell their homes)need this program to be reinstated.

On a daily basis, I read about how much Washington is doing to stimulate the housing market and for that I say thanks. I am not asking for a new stimulus, I am just asking to resuscitate a necessary program before it is too late, I'm just asking to not create problems. The housing market has taken many blows to the head and we keep getting up -- we have too,our nation's economy depends on it. If you agree with me that Congress shouldn't break for independence day without passing this, please contact either Jim DeMint or Lindsey Graham. If you go to their websites, you will be directed to fill out a form which is fine, however a think a better idea is to email their schedulers at alice_james@lgraham.senate.gov or julie_blackorby@demint.senate.gov. Thanks in advance.

Coosaw Point BBQ Cookoff

On June 5, 2010 Island Realty and Coosaw Point held the “First Annual Coosaw Point BBQ Cookoff” to benefit The Little Red Dog, an organization that provides special bikes to handicapped children and adults. 250 locals attended the cookoff showcasing both professionals and amateurs competing in a variety of categories such as Professional, Amateurs, Just for Fun/Trailer Trash and Showmanship. Among the area restaurants in the event were, Saltus / Plums, Boondocks, Keiths, Danny’s BBQ, The Office & The Smokey Chef. Among the amateurs vying for honors were Bud Martin, Andy Gallant & Lorrick Fanning.

The daunting task of tasting and judging these fine samples of “real barbecue” was left to local celebreties; Rep. Shannon Erickson, Sen. Tom Davis, Mayor Billy Keyserling, Malcolm Goodrich, Charles Gay and Richard Brooks. Robert and Ann Gallant graciously donated the location and Island Realty’s Christian Sherbert & Todd McDaniel did a yeoman’s job of organizing the event that ultimately raised $1700 for The Little Red Dog Foundation”. Go to www.coosawpoint.com for pictures.

Reluctant Buyers Lament

I cannot take credit for this, one of our agents, Christian Sherbert, gave it to me, and I think you will like it.

Reluctant Buyers Lament

I hesitate to make a list

Of all the countless deals I've missed

Bonanzas that were in my grip

I watched them through my fingers slip;

The windfalls which I should have bought

Were lost because I overthought;

I thought of this, I thought of that

I could have sworn I smelled a rat,

And while I thought things over twice,

Another grabbed them at the price.

It seems I always hesitate,

Then make my mind up much too late.

A very cautious man am I

And that is why I never buy.

The golden chances I had then

Are lost and will not come again.

Today I cannot be enticed

For everything is overpriced.

The deals of yesteryears are dead;

The market's soft and so's my head!

At time a teardrop drowns my eye

For deals I had, but did not buy;

And now life's saddest words I pen --

IF ONLY I'D DECIDED THEN!!!!!!!

Sales Trending Upward in 2010

Last week for the first time in quite a while, I didn’t cringe when I looked at our monthly numbers. In fact when I finished studying them I was down-right happy. I am by no means telling you that this challenging market is behind us but I am telling you that we are starting to crawl out of the darkness.

Our “closed sales” and our “pending home sales” are more than twice what they were year to date in ’09, additionally, our walk in traffic, phone ins and web site hits are also twice what they were YTD. Island Realty is still the leader east of Cowan Creek with both listing volume and closed sales and we are the dominant force on Fripp Island (43% market share), Harbor Island (30% market share) and Coosaw Point (58% market share).

Last year we did 70% of our business in the 2^nd half of 2009 and I was hopeful that the trend would continue and it has. The market continues to be demanding however and depending on what you read either the recession is behind us or soon to be over. The truth is no one can tell you for sure the exact moment that we are out of this until we are well past it. The statistics that I cited above give me great hope that we are either out from under the black cloud or soon to be and when that happens, I will be supremely happy, not happier than our buyers and sellers, but supremely happy nonetheless.

Locally, both inventory and prices are starting to stabilize. Although lending is still tight, those with good credit can still get loans. Additionally those who are able to obtain financing are snapping up property at bargain prices which is a win / win. The buyers get almost instant equity and we as neighbors and home owners get a reduction in inventory supply, which helps prices stabilize, which is critical to returning to a normal market. Indeed a win / win.

So what does my crystal ball say? Quite frankly the volatility of the market over the last two years has shattered my crystal ball. The last two years have been the toughest of my career and I was licensed in 1995. The market did strange and weird things. Banks did even stranger things on short sales and foreclosures, the stock market did strange things as well.

Truly though, I believe there is real evidence of improving conditions in many respects. Employment is improving, retail spending is improving and auto sales are up (I personally participated in boosting the auto sales). Even the most pessimistic of forecasters noted that jobs and housing would need to turn before we should feel like we are back on track. I can tell you that we at Island Realty are doing our part to keep the housing component on track, no small task, but we are doing our part. Another win / win.

Be Clean, Go Green

Be Clean, Go Green!!!!!!!!!!!!!!!

 

 

About 30 years ago, Kermit the Frog had a song out called "It's Not Easy Being Green".  Kermit was teaching the audience about the color green that day.  His song laments the fact that he is different, he tends to get passed over for shinier things like the stars in the sky and flashy sparkles on the water.  The overall tone is indeed sad.  However, he ends the song by saying, "I am green and it'll do fine, it's beautiful, And I think it's what I want to be."  I'm with Kermit on this one. 

 

Since that song was penned, "being green" has taken on new meaning and it also has become easier and we at Island Realty are working hard to make it even easier still to be green.  About a month ago Christina, our office manager and I were in our storage shed looking for space to put a few pieces of furniture and a new batch of files (there are tons of files in a real estate office).  On one entire wall of the shed there were boxes and boxes of files that no longer need to be kept, however the information in them is sensitive and we felt it was a beyond a bad idea to just put them in regular trash.

 

After tons of discussion about how to get rid of the miles and miles of files, we knew we needed to shred the documents and decided we had more than a household shredder could accommodate. It was then that we began looking into having a mobile shredder come to the office. Hmmmmmmmmmmm but we didn't have that much trash (the mobile unit we have coming can hold 6 tons of waste, imagine killing a gnat with a sledgehammer). We decided it was a great community service to offer to the homeowners on Fripp and Harbor Islands.

 

So that is how our first "Be Clean Go Green" event was born. On May 5 from 9-11a.m. we will have a mobile trash shredder at our Harbor Island Office located at 2 Harbor Dr. The shredder will take paper, files, cds, credit cards. Please note, paper clips and staples DO NOT need to be removed.

 

This is a great way to securely & reliably protect your identity, get rid of old documents, i.e. retired tax records, medical records, bank statements etc. and generally purge your files in an environmentally friendly way. All the materials are recycled as well. So I would say to Kermit the Frog, in this instance "It Is Easy to be Green".

 

Will you join us? Let me know who is planning to come or other thoughts you may have on this or any subject. I look forward to seeing you on the 5^th.

What are you thinking SC?

To: The Leadership of South Carolina:

Hello South Carolina government, what are you thinking?

An amendment was introduced by Representative Ted Vick, of District 53 - Chesterfield County, which would have established a new statewide property tax for homes valued at over $250,000. The amendment was debated at length and failed very early Thursday morning. Representative Gilda Cobb-Hunter introduced and ultimately withdrew an amendment that would have repealed the 2006 changes to the property tax structure known as Act 388.

My question is, how much more can the real estate market take? In our area, we are starting to see glimmers of recovery and a new tax on homes at $250k + would definitely hinder sales so thank heaven that was defeated. Why is it that the state & it’s officials, particularly in areas away from the coast, view real estate and the potential tax as such a cash cow?

In any event, I bought my home on Fripp Island in 2004 for a vacation getaway and moved here full time in January 2007. Please note that this was after a 3 year search of 2^nd home communities and I looked at numerous coastal communities between Virginia Beach, VA and Jacksonville, FL. There were many criteria in my home search but please note that the state governments and their treatment of property owners was an important factor in my decision.

Please, let’s not lose sight of the fact that the second home & retirement home market is an integral part of our state’s economy and the people that are our potential buyers have lots of alternatives to SC. The greed or tax lust that I keep reading about will ultimately harm us all I am afraid. Please urge our legislature to continue to do everything possible to straighten out the ludicrous “point of sale” tax. Oh and thank you for squashing the tax on homes over $250k.

New Tool For Challenging Market

Beaufort, SC – March 4, 2010 — Theresa Cooper, Jennifer Helms & Cindy Byers with Island Realty of the Lowcountry have earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS^® offers the SFR certification to REALTORS^® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS^® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

“As leading advocates for homeownership, REALTORS^® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR^® who has earned the SFR certification for these kinds of purchases.”

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS^® stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORS^Ò are required to take one core course and three Webinars.