Some of you out there may be hearing all about this new $7500 tax credit for buyers who bought a home anytime on or after April 9th, 2007 and before July 1, 2009. 

 I’m sure it sounds great on paper but there are a few things to note about it…

1.   1st of all, you must be a First time home buyer.  (That was probably not surprising..)

2.  There is an income limit…

3.  It’s NOT A CREDIT!  Here’s where things get weird…  In actuality the program is an interest-free loan.  You will be expected to pay the “credit” back at tax time over the next 15 years OR when you sell the house..

 SO that’s $500 extra per year that you will be paying back to uncle sam over the next 15 years.

Although the timing is great news for many people (as times are tough), the “branding” of the credit feels strangely misleading to me. 

Why did they call it a Credit?

These days we are literally flooded with available advertising outlets.  Thousands of options online, and plenty more “old school” outlets in the “offline” world.  I’ve heard plenty of people claiming that print ads are “useless”, “wastes of money” and a straight up “dead medium” …

 So what’s this all about?

Here’s how I see it:

A newspaper ad will potentially reach a few thousand pairs of eyes in the local distribution area.  (best case scenario) Many people in Charleston, for instance, will see an ad in the P and C or the City Paper.  Lots of people hang out on weekends, skim those classifieds and circle the ones they want to learn more about.

 Ok, well what about online advertising?

Online ads have the ability to reach anyone in the world at anytime of the day!  Shoppers in Charleston, Florida, New York, France, Dubai, Guam, or Antarctica (for a few examples) can view those ads, check out the big color photos, videos, or virtual tours. 

But what websites are they shopping on?

Another great question…

Uber Sites like Zillow.com and Trulia.com get TONS of search traffic.  Realtor.com has them both beat with almost all listings, and local brokerage or agents sites like This One get far less traffic but much better conversion rates, as they are much better targeted for what buyers are looking for. 

Then there are sites like craigslist.org and Ebay.com that allow sellers and agents to run ads.

 So which is the best?

Well it’s not that easy….

The deal is that Local Brokerage and Agent websites like This One have the MOST listings.  In Fact, they have ALL the listings because they are directly conneceted to the MLS.

Zillow and Truilia get enough traffic that they can not be ignored.  However, they do not have ALL the listings in the MLS.  Agents and sellers submit their listings if they want to…

Newspapers actually, statistically, do show some of the lowest success rates and the they also cost more then almost any ad online ad space.

AND THE WINNER IS:

It’s hard to believe but studies have shown that the highest success rates come from well designed Craigslist ads with great pictures and video tours. 

Should I advertise in newspapers anymore?

Well that debate will rage on for years to come.  Many agents will swear by both sides of that argument…

So what do you think?

ShopCharlestonRealEstate.com has unleashed our are’s best and most powerful real estate search portal.

 With Map Based technology and over 40 lines of data for each listing, users will also be able to access:

-A flash based photo slideshow

-Past Sale Dates and Past Sale Prices!

-Zillow Value Estimates With Graphs

-Driving Directions

-Ability to Set Up Showings or Ask Questions

-Ability to Save Search Criteria

-Ability to Save Listings that Look Promising

Check it out for yourself by clicking here: www.shopcharlestonrealestate.com/search

Have fun!

To all our faithfull ShopCharlestonRealEstate.com blog readers and searchers.  BIG changes are on their way.

 ShopCharlestonRealEstate.com is about to become a full blown Real Estate Search Portal. 

 We have some of the coutry’s best programers putting the final touches on what will be one of the best and most powerful real estate searches in the US.  Charleston, you have never seen anything like this…

 It’s only a matter of days now so we’ll keep you posted….  Keep checking back for the big announcement…

Remember when you could get an oceanfront house for under $1.5 Million?  It was a LONG time ago but it’s also TODAY!  In a quick search of Folly Beach ocean front houses (not condos but houses!) Six currently turned up for under $1.5 Million. 

 Well $1.5 Million is a lot of money but think about what ocean front homes cost elsewhere in the country.  For comparisons sake, we’ll even leave to the west coast separate.  Just on the east coast, think about this…  Most of the oceanfront land is taken up by condos.  Almost ALL of Florida’s oceanfront coastline is condos and those condos?  Get ready to pay…  The northeast?  Forget about it.  Upwards of $10 Million for oceanfront homes in the Hatteras area of MA.  Sullivans Island, right here in Charleston?  Get ready to pay $3 Million and up.  Folly Beach two years ago?  $3 Million. 

There is only so much oceanfront land in the world, this seems like a time to pounce….  Anyone want to lend me some money??

Click This Link To Check Out All Folly Oceanfront Homes Under $1.5 Million

http://www.CharlestonTrident.com/PropertyResults.aspx?gateway_la_code=10558&SavedSearchID=312662

In a controversial vote back in 2006, the people of SC decided to pass a reform bill that would adjust the way taxes are calculated.  Typically, until now, property taxes were based upon this equation:

Assessed value (As assessed in 2003) x Millage Rate x 4% (owner occupied) or 6% (non owner occupied) = annual tax amount.

 That 2003 assessment is usually nice and low since prices have climbed so much since then.  Well this year things have changed and a reassessment is upon us.  NOW, homes changing hands are assessed at the sales price!  And what’s worse, is that all properties sold in 2007 will be adjusted!  Homes sold before 2007 are safe for now. 

To offset this hike, school taxes were removed from the property taxes last year. 

Make sure you consult your Realtor if you are shopping for a house and have them tell you how much taxes are going to be.  And if you bought in ‘07…get ready for a surprise….

What’s going to get those listings sold this year?

 Having trouble getting people to your house?  Is your agent using new technology like Video?

Check this out!  This video was put together by WellcomeMat.com, a video hosting site for real estate related videos.  The footage is from the National Association of Realtors conference in Vegas, earlier this year.

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We have teamed up with www.HomecastVideo.com for video production.   They are a local company with great prices and great quality.

Have you ever heard a real estate agent tell you something like: “If you overprice your home when you initially list it, you will end up with less money then if you just price it right at first”?

Or

“List your house on Friday, you’ll generate more traffic”?

Interestingly enough, I’ve said that a million times.  Do people believe me? Sometimes….  Do they think that it’s just my opinion? Always.

Well now we have some Hard Numbers!  Redfin, a real estate company in Seattle, WA has done some research and offered seven tips for getting your home sold.  (with numbers based on data collected from 8 MLS systems nationwide) (Local numbers may vary slightly…)

1. Don’t Overprice! Homes without price reductions sell for 97% of list price while those with reductions sell for 88% of inital list price. (usually much more then the original reduction….)

2. Show up in searches. Homes that are $550,000 will see much more traffic then those that are $555,000.  With search increments set to multiples of $50,000 usually, traffic can increase as much as 7.1% from increment to increment!

3. Debut on Friday. Redfin reports that they see most search traffic on Fridays.  (So does ShopCharlestonRealEstate.com)

4. Stay in touch with your agent.  Studies have shown that motivated and in touch sellers get homes sold 30% faster then the “laid back” type….

5. Advertise online! With 80% of active buyers now searching online, it’s time to grow your presence. 

6. Don’t move out just yet…  Studies show that vacant homes are 9.5% more likely to undergo price reductions.

7. Don’t compete against foreclosures.  It’s a fact of life currently.  There are more foreclosures out there these days so if you have one as a neighbor, try to wait until after it sells, to list yours.  A neighboring foreclosure can end up costing you an average of $5000 off your list price!

So there we have it.  The hard numbers behind what we’ve been saying for years….  I don’t want to rub it in but…. I told ya so!

Remember back in the 1999-2005 years when prices were skyrocketing and you were saying, DAMN! I WISH I WOULD’VE BOUGHT SOMETHING BEFORE PRICES DOUBLED AND TRIPLED!! 

 Buying something during the boom years didn’t look like a great buisness idea as sellers kept a firm grip on their drivers seats…  In looking through the MLS today it occured to me that now feels like one of those times before the boom years…  I think I hear opportunity knocking and I myself will be answering the door as much as I possibly can this year.

 Buying opportunites don’t come along often in a growing city but we certainly have one on our hands right now and I don’t want to look back on this era in a few years, angry that I didn’t act on it.  I want to be one of those smart people who sell a house in a few years and buy a Porsche, or a ski house. 

 Prices are low enough again to make renting for enough to carry the mortgage possible again. 

2008 is looking bright with opportunity…  Time to buy that bigger house.  Time to diversify with some rental properties.  Time to make some low offers.  Time is now.  Don’t regret NOT making another move….  I know I won’t….

As we get ready to say goodbye to another year in Charleston, it’s always fun to look back and try to figure out how the year will be remembered.  I know that at least in my world, I’ll remember 2007 as a rapidly transitioning one…  Obviously we have all heard about what has been going on in the real estate world, nation-wide.  Dipping prices, foreclosures, and just a general gloom and doom atmosphere.  Much of this has been fueled by an epic credit crunch but also to blame were those crazy few years of rocket-like price inflation.  It sure was fun while it lasted but it was due to come to an end eventually… 

 So that was the story nationally, but what about Charleston?  What happened here?  Well, while it was certainly not another 2005, 2007 saw about 11,000 homes sold which made it the third highest volume year on record! 

But wait, if it was such a busy year, why didn’t it feel like it?

Good question….

Here’s the deal…… (and what we can do to make 2008 better)

1.  The media continues to bash the real estate market.  (Everyone loves to hear bad news on tv…  It’s sad but true and it’s time we get the word out about the good things that are happening around here.)

2.  Listings do take a pretty long time to sell these days.  (There are a LOT of listings on the market and therefore a LOT of choices for buyers.  The selection process takes time and they are choosing the listings that are best priced and most turn key.  If you want to sell you house, DON’T OVERPRICE IT and get it ready to sell.)

3.  My condo has been for sale all year!  (Condos are a little tougher to sell because you will be competing against other units with the same floor-plan, finishes, amenities, etc.  If you want to sell a condo you REALLY need to get it to stand out.  Try offering some extra commission to buyers agents, lowering the price, finishing it out differently, or a combination of each!)

4.  I can’t get a mortgage! (This is probably not true…  While standards have gotten tougher there are usually loans out there for everyone.  And if you have good credit, some money to put down and a steady paycheck, you will most likely not only get a mortgage but will get one of the best interest rates offered in years!  If you aren’t a “perfect borrower”, fret not, there are most likely still options for you out there.  Just talk to the right people.)

So, here’s looking forward to a great 2008 for everyone!  Enjoy the holidays and travel safe if your headed out of town.