Tips on Buying a Luxury Home

While home prices across the country have dropped or stabilized to varying degrees, luxury home prices have been slashed.
This presents a great opportunity for those who have the financial resources to purchase a luxury home that might have been completely out of their range six years ago.

“Purchasing a luxury property, however, is unlike a standard home purchase. We advise all our luxury-home clients to consider the following before embarking on their search:

1. Weigh the finances carefully.

Even if you’re ready to pay cash for your luxury home, you still want to ensure you’re getting the best possible value and potential return on investment from your home purchase. Make sure you truly have the financial wherewithal to remain in the home as long as you’d like. Consider the stability and growth potential of your future income before moving forward.

2. Have your documentation in order.

Many luxury home buyers derive their net worth from a variety of sources and investments. Given the high-end purchase price of a luxury home, along with today’s unstable economic climate, prequalification is often necessary when it comes to luxury purchases.

3. Investigate alternative search methods.
The best luxury property deals might not be found through traditional real estate search engines but rather through word of mouth. I am well connected and networked in the communities your are considering.

4. Seeing is believing.
Expansive square footage, sprawling property, and a bevy of incredible views often make luxury homes difficult to completely capture in photos, videos or virtual tours. A visit in person is an absolute must to make sure you’re not missing any potential details and, conversely, to make sure the property lives up to its image.”

Thanks for the article Anita Rich’s


I specialize in helping my clients with the purchase of their luxury homes. Call me today for all your needs.

Loan Tips for Self-Employed Home Buyers

If you are self-employed and are considering purchasing a home, it’s important to be aware of the changes that have occurred in the world of lending.

Here is a quick check list for prospective buyers.

As everyone is well aware, getting a loan is not nearly as easy as it used to be. Those who are self-employed are having a more difficult time borrowing money and must provide documentation that shows their income. The IRS is being contacted for income verification by many lenders and any fraudulent income claims are being dealt with.

In a nutshell, if you are self-employed and applying for a mortgage loan, be prepared to:

Line up all of your documents showing your income before going to apply for a loan.(2 years tax returns including all schedules)

Check your credit and do what you can to improve your credit score.

Pay your bills on time.

Most importantly, tell the truth. Misrepresentation can cost you.

Many lenders are hiring more loan officers. They are convinced that current low rates are going to bring many more new and refinance loans in the next 18 months or so. Mortgage rates have been decreasing since April, closely tied to the unsteady economy where wary investors are putting their money in safe investments like treasury bonds. As these yields go down, interest rate goes down as well. In other words, the unsteady global economy equals good news for the home buyer acquiring a mortgage and home owners who are refinancing their home loans.

If you are self-employed and can provide decent and accurate documentation there is no reason you shouldn’t be able to secure a home loan.

Call me today with help concerning the documentation needed for a self-employed borrower.  Helping you find the home of your dreams is one of my top priorities.

Thanks Lee Dworshak for the information.

Basic Water Heater Facts

If you are a new homeowner, you may not realize that your home’s water heater uses the third largest amount of energy of all your household appliances. A water heater is crucial and in most cases you cannot reduce the amount of use that it gets.
Below are ways you can increase the efficiency of your current water heater or even replace it with a more efficient solution.

First, if you don’t want to replace your current water heater, here are three things that you can do to increase the efficiency of your water heating.

          Use less hot water. Consider taking warm showers instead of hot showers, and lower the temperature of your dishwasher.

Take shorter showers when possible, or install low-pressure shower heads. Many people incorrectly believe that baths use less water than showers. Four people showering for five minutes each, three times a week use almost 1,000 gallons of water every single week.

Insulate! Just as insulating your attic reduces heat loss through the roof, insulating your water heater keeps water hot for a longer period of time.

If your water heater is more than five years old, you may need to replace it in the near future. If it is more than ten years, definitely consider replacing it before it stops functioning.
Water heaters are an enclosed mechanism and therefore cannot be repaired. It is always good to know which replacement model you will select if your water heater stops working.”

Get Landlord Insurance for Rental Property

With so many affordable bargains in the housing market, people are beginning to purchase real estate as an investment again – or, if they can’t sell their home quickly, converting it to a rental property.  But are you prepared to become a landlord?

I highly recommends any owner carry landlord insurance.

There are several things you want to make sure are covered by your landlord policy.  Most importantly, your policy will cover you against damage to your property.

For example, if there is a fire that makes the property uninhabitable for a period of time, your insurance will not only cover the repairs, but also the lost rental income during the period you’re unable to rent it out.

Your policy should also cover legal disputes with tenants.  For example, if your tenants have stopped paying rent, but have not left the property and you need to take them to court, your policy should cover your legal expenses.

Finally, there are certain situations in which your property might cause damage to your tenants’ property.  This is a sticky situation.  First of all, your tenants should have their own renters insurance to cover their personal property.  However, if you are negligent in addressing an issue that ultimately causes damage to your tenants property, you need to be covered. 

For example, your tenant notifies you several times that the roof is leaking when it rains, but you neglect to have the roof repaired.  If the roof collapses and destroys some of their furniture, you are responsible.  However, if the tenant has not made you aware of the problem, you are not negligent.

This is  just a small amount of information I offer my clients looking to buy properties.  Call me today to discuss ways to help you buy rental properties at a good value.

Thanks Robin Jones for the information.

Do I Need a Realtor to Purchase a Newly-Constructed Home?

     

Buying new construction can be very complicated and I definitely recommend that you hire a Realtor that is experienced in helping clients buy new construction. Depending on what stage of construction (if any) the new home is at when you find it, there are so many factors to take in consideration. Even if you are not a first-time homebuyer (but particularly if you are), you should want an experienced Realtor giving you professional expert advice. 

There are things that I do for my clients that you might not, which could save (or cost you) thousands of dollars down the road. Just a few examples would be having a first home inspection after the building is framed but before the walls and flooring are finished, so that your home inspector can get a good look at the structure, framing, plumbing, electrical, etc. Home inspectors are more skilled then city/town inspectors, so you can’t just rely on a closed building permit. Or I might recommend that when the house is being built to include another heat zone for the basement or a walk-up attic, if you know your family may be expanding.

Lastly, you didn’t ask but I highly recommend that you have a real estate attorney look through and help negotiate the contract to purchase and/or purchase & sale agreement. The standard forms builders use and the specification (“spec”) sheet included are usually vague and not comprehensive enough to cover all the details, and in buying new construction, the devil really is in the details. Which underscores why I recommend you have a real estate attorney and myself in the purchase of a Newly constructed home.

Looking forward to doing business with you.

Thanks David Kres for the information.

Have a home fire escape plan and practice it regularly

Too often people panic in this situation because they do not know what to do. You and your family should make a fire escape plan to insure that everyone gets out of the house quickly and safely.

• Draw a home fire escape floor plan of your home or apartment. Be sure to mark all the doors and windows.
• Know two ways out of every room. If one way is blocked by smoke or fire, you can use the second.
• Plan a waiting place where everyone will meet. Plan to call the fire department from a neighbor’s house. Don’t go back in the house!
• If someone is trapped, let the fire department rescue them.
• Practice your home fire escape plan until it becomes automatic. Then practice again at least twice a year. Too often families make plans and then put them away in a drawer or filing cabinet. When a fire occurs, you will not have time to search for your plan.

Know what to do if you hear an alarm
When you are in your room and you hear a smoke alarm go off or someone yelling “fire” or “smoke,” you only have a few minutes to get out of the house.

• Get down on the floor and crawl low. Both smoke and heat rise, so if you stay between 12 and 36 inches off the floor you will avoid the high heat and toxic fumes.
• Check the door before opening. Look for smoke coming in around the frame. Feel the door with the back of your hand. If you have a solid door, it will be hot to the touch if there is a fire on the other side.
• Open doors slowly and carefully. If a door is cool enough to open, you still need to be very cautious. There could still be fire on the other side. When you open the door, put your head down and tilt you face away from the opening. Open just a little, so it will be easy to close if you detect a fire.
• Close doors behind you. Remember that closed doors will slow the flow of oxygen to the fire and give you added time to escape.
• Learn how to escape from windows. If you are on the first story exit the window, feet first. Grab on to the ledge and hang down as far as you can and then jump. Do not attempt to exit a window any higher up except as a last resort.
• Do not use an elevator. If you live in a high-rise, locate the fire escape and use it. A fire can disable the elevator, you could be trapped.

Use the grid below to make your home fire escape plan.

• Start off by drawing the outside edges of your house then draw the inside walls, rooms, doors, etc.
• Once the house is drawn, mark an escape route so that every room has at least two ways to get out in the event of an emergency.
• Family members should become familiar with this plan and have a central meeting place outside of the home for the family to meet.
• Make sure that someone is assigned to help younger children and older family members.
• Practice the plan!!

right click save as - home fire escape plan sheet

Here is a checklist to review after practicing your home fire escape plan . . .
Know what to do if you hear an alarm

Did you remember to. . .

• Make a home fire escape plan floor plan and know two ways out of every room?
• Respond quickly and calmly?
• Stay low and crawl?
• Feel the doors to see if they are hot?
• Open doors slowly and carefully?
• Close doors behind you?
• Exit windows by dropping feet first?
• Go immediately to a meeting place?

Your Home Fire Escape Plan is a valuable prevention safety measure.

Tips for Hiring the Best Remodeling Contractor

It’s not surprising that many homeowners are looking to home improvement and renovation, rather than buying a new home in today’s market.

I believe when deciding to undertake a remodeling project, there are several invaluable tips to keep in mind as you discuss your home makeover with potential contractors.

I can offer tips to make your home renovation a more streamlined, more palatable experience, courtesy of Stageoflife.com:

Tip #1: Does Your Contractor Have Proof of Insurance? Ask the contractor to have his insurance company mail or fax a copy of his current contractor insurance card to you. If the contractor can’t do this, stay away. Why? If there is an accident at your home, you are then liable. This also applies to any sub-contractor or employee that the contractor may use; those individuals should have active insurance cards faxed or mailed to you as well.

Tip #2: Did You Check References and See Photos? Ask for at least three references — with two of them being for the same type of project you are planning — and then call the references. Additionally, ask the contractor to provide photos of previous work, especially for the same type of project. If he produces lawn and garden photos and you’re planning a bathroom remodel, you may want to check out another contractor.

Tip #3: Does Your Contractor Take Debit or Credit Cards? Besides your ability to earn a few points, bonus miles or cash back on your project, a good sign that a contractor is financially savvy and has a bank behind his business is his ability to take debit and credit cards. This doesn’t just apply to big contracting companies. Many small, one-man shops will take cards if they have a good relationship with their business bank or credit union.

Tip #4: Manners and Appearance? If the contractor drove his vehicle to your home to give you an estimate, take a look at the way he keeps the equipment and vehicle. Are things clean? Neatly arranged? If not, that’s a big warning. The way a contractor treats his tools is a direct connection to how he’ll treat your home. During the initial meeting, does the contractor present himself in a professional way? Do you feel comfortable around him or his employees? They will be working in your home after all.

Tip #5: Clean-Up Policy? Ask about the clean-up policy. For example, if your home improvement is a multi-day project, will the contractor be cleaning up at the end of every day or will he leave the dust, wood chips, and other mess laying there for day two? The more mess in your home … the more it gets tracked around. Many homeowners find themselves with mouths gaping wide after the contractor has left for the day and their floors and home are dirty and messy around the project area.

Thanks Le-ann Vicquery for the information.

With over 20 years in the Real Estate business, my knowledge is imperitive to helping you navigate the obsticles of homeownership and making your experience as pleasant as possible.  I am looking forward to doing business with you.

Good Neighbors Handle Conflict

When it comes to neighborly disputes, it is often difficult to reach amicable decisions; relationships can be stretched and boundaries pushed if issues are not handled carefully. When you share a property line with another individual, there will come a time when you will be involved in joint decisions. Should your fence be replaced? Who is responsible for the cracking sidewalk? And can you cut down that overgrown vegetation obstructing your view?

“Here are some of the most common causes of neighbor disputes, and how to handle them in a “neighborly” way.


Click on the link for the full article: Good Neighbors Handle Conflict

Should You Buy a Second Home Now?

If you’re thinking about buying a vacation home, you’re not alone.


The rate of second homeownership has jumped, as large numbers of Baby Boomers move into their prime wage-earning years. It is estimated that 6-10 percent of homes in the United States are second homes and that number is much higher in desirable vacation communities. Especially in SC where the Mountains and lakes meet. 


One should never rush into a second home purchase as it a big step and likely your second most valuable investment.

You need to consider it over time. Determine how much use your vacation home will get and how it can fit into your finances. Don’t forget to double everything. Buying a vacation home means that you will not only have two mortgages, but two property tax bills, water bills, fuel bills, etc.

Two homes mean more maintenance, including two plumbing and heating systems, septic systems, and roofs.  And if something breaks down in your second home, chances are you may not be there to see it.

For some, this is just too stressful; at the same time, owning a second home can be very rewarding. It can be the source of relaxation: a time to get closer to your family, a place to be a kid again, and a place to meet new friends. It can even be a place to retire.

Lastly, owning your own home is not like renting. You get to leave your stuff there to truly make it yours. You can make impromptu escapes, leaving the stress behind; and your children and grandchildren will feel more comfortable in a place they have learned to call home.

If you’re considering a second home purchase, where do you start?

Location. Consider your personal tastes, interests, and hobbies when you’re choosing a second home. For example, if you’re the type of person who thinks anything over a two-hour ride is long, you’ll have a fairly small geographic area in which to conduct your search.  If you plan to use your second home for a couple of vacations every year and long holiday weekends, then you can extend your search to a larger radius. Many second homeowners purchase properties in their favorite vacation spots because they already enjoy the area and want to spend more time there.

How much are you willing to spend? Prices can vary greatly. Up and coming communities are less expensive than established vacation hotspots which have seen explosive appreciation. Prices in these popular areas range from a home on the beach worth $1 million to the same-sized home a mile down the road worth half that price. Check current mortgage rates to get an idea of what your monthly payment might be. Don’t shy from jumping in the car and spending weekends looking for different vacation homes.  

I specialize in helping my clients find their perfect home.  The video below shows a small sample of the homes in the Upstate of south Carolina for sale.  I am looking forward to doing business with you.

Thanks Wayne Davis for the Article.

Documents to Keep After Closing

At the end of closing, a large stack of papers sits in front of you. How do you know which ones to file away for future use?

The Top 5 documents you need to keep at hand.

To make your job of sorting through the papers a little easier, here are a few ‘be sure to save’ items.

1. Truth in Lending statement: This handy paperwork helps to summarize the details of your mortgage, including your percentage rate.

2. Insurance: Not only does it serve for proof of coverage, but just in the case you need to make a claim, you will have contact and coverage information on hand.

3. Deed: This paperwork proves that the property has “indeed” been transferred to your ownership.

4. Riders: These are sale contract changes (amendments) that affect you directly.

5. HUD-1 Settlement Statement: This is a great itemized list of your closing costs. It will be especially important for when it comes time to pay income taxes.

Be sure to keep all of your paperwork in an organized filing system and in a fire-proof safe.
For a more in depth list of items to keep, give me a call to discuss.

Thanks Lawarenc McCowen for the inforamtion.

How to Pack for Your Move

Packing and moving is a daunting task. To prevent getting overwhelmed, start packing early.
To make the chore easier, Braintree, I recommends these few simple techniques.

“Getting Started: Gather Packing Materials

Using proper packing materials pays off in the long run. You can purchase sturdy boxes, specialty boxes and packing materials at local moving or shipping companies. Some wholesale companies and large stores will have free boxes available after a shipment. Wadded up newspaper, old pillows and blankets make inexpensive padding materials.

The following tools and materials will make your packing go more smoothly:

• utility knife and/or scissors
• note pad and pen
• dark, water resistant marker
• boxes of differing sizes
• packing tape
• bubble wrap
• newspapers

Packing Up

Wrap items individually and always place a layer of crushed paper in the bottom of the carton for cushioning. Fill empty spaces with additional crushed paper.

Make sure cartons are firmly packed with heavier items on the bottom and lighter ones on top.

Put heavy items in small boxes so that they are easier to carry.

Pack one room at a time numbering and labeling each box on the top and side with a description of its contents and which room the box belongs in. Label boxes containing breakable or sentimental items as “Fragile.” Keep a detailed list of what items are packed in each box to make unpacking easier.

Plan ahead for what you’ll need the first day after your move. Packing a separate bag with your toiletries, a change of clothes, etc., will avoid unnecessary scrambling or a run to the local store. Also pack a box of necessities such as toilet paper, towel, soap, dish cloth, broom and dust pan, trash bags, telephone, etc.

Breakable Items

Empty all drawers of breakable or spillable items.

Pack all breakable items with lots of padding: line the bottom of the box with crushed newspaper. Mark boxes “Fragile” so they are handled with care.

To prevent unnecessary damage, put all furniture knobs, feet, screws, etc., in a container that you can keep with you so the parts won’t get lost.”

Understanding Real Estate Capital Gains

When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for.

The same holds true when selling a home (or a second home), but there are some special considerations.

“How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.

2. Total adjustments: To calculate this, add the following:

Cost of the purchase — including transfer fees, attorney fees, and inspections, but not points you paid on your mortgage.

Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.

Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

3. Your home’s adjusted cost basis: The total of your purchase price and adjustments is the adjusted cost basis of your home.

 4. Your capital gain: Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.”

This does NOT mean that you will pay tax because you may qualify for an exemption depending on how long you have lived in the property.  We can discuss this option as one of my clients.

 If you have an investment property then you could consider 1031 exchange and defer the tax bill.  

These are the strategies that I use with my clients to make sure that you a getting the most from your home sale.

Looking forward to doing business with you.

Thanks Frank Wade for the information.

Secure Your House on the Outside

Last month, the country recognized National Home Safety Week.

The occasion inspired me to suggest ways to keep the exterior of your home safe:

• “Store flammable liquids like gasoline and paint thinners outside the home and away from anything that could spark a flame. These liquids could explode.
• Make sure your garage and shed either have a convenient light source or a flashlight available right where you walk in.
• Store pesticides, antifreeze, gasoline, paint thinner, lighter fluid, etc. in a locked cabinet out of reach of pets and children, preferably in your garage or a locked shed.Trim your trees at least once a year to remove any dead or dangling branches that could fall.
• If you’re going to be away from home for awhile, create the illusion that someone is home by leaving on a few lights and the tv or stereo.  Set timers on your outside lights or install motion sensor lights that will come on any time some gets close.
• Make sure all your exterior doors have a lock and a deadbolt.  Never hide your keys in obvious places outside such as under a doormat or a plant unless you actually want to be robbed.
• Don’t leave notes on the door for service people.  This is like a neon light telling people you’re not home.
• Planting large shrubs in front of windows can be a deterrent to break-ins.

Remember, a safe home is a happy home!”

Looking forward to doing business with you.

Are Online Appraisals Accurate?

Over the last five years, one of the newest developments in real estate is the ability for home buyers and sellers to search online for a home’s appraisal value.

Many websites offer free estimates, but I often say say the values calculated often are inaccurate and misleading.

 ”Making sense of the story for consumers:

• Online home appraisal websites assign home values without knowing the features or upgrades of a home or the neighborhood in which it is located.  Some websites offer a price range of $20,000 – $40,000 more or less than the actual value of the home. 
• Since housing markets are local and not every home of a certain size is the same value, consumers can be misled into believing a home is worth more or less than the actual value.  Working with me can help minimize inaccuracies in home values. I can provide local housing market data and show homeowners and buyers recent sales of comparable homes in the area, to help determine an accurate list or offer price.
• While some agents report that Web estimates can educate clients and provide a reasonable assessment of market conditions and the home-buying process, working with a me is the best option.”

Can You Change Your Mind About Home Offer?

It happens too often. We buy an item; a dress, a suit, a tool, or shoes. We get home and start to think twice. Before you know it, we’re making a trip back to the store to return it.

When you decide to buy a home, buyer’s remorse isn’t so simple to resolve.

“Let’s say you and your Realtor have toured 15 homes; you walk into the 16th one and you say to yourself, ‘This is it!’ You make an offer and a deposit. It’s accepted and you’re officially under contract.

Now you start to get cold feet. You begin to think about the commute to work being longer. Taking your children out of their current school district. Maybe the space is smaller or larger than you wanted so you call your agent and say, ‘Never mind, I changed my mind.’ Can you just have a change of heart? Can you get your deposit back? Can you just walk away?

When your contract has been ratified, meaning accepted by the seller, you can’t just return the house like you could a pair of shoes. For instance, when buying homes in SC, if your contract has been ratified, every last initial and signature being completed by you means you are in a legally binding contract. If you decide you no longer want the home, you can find yourself in legal trouble. You could be forced to perform, that is forced to buy the home as you initially offered to do, especially if the home was being purchased with cash, and not contingent upon financing.

Thanks Ariana Loucas for the article.


This is why you want the best agent to represent you during the buying process. Give me a call and I am looking forward to working with you.

Rent vs Buy when Relocating

If you are relocating, chances are that one of the biggest questions coming to mind is whether you should buy or rent a home at your new location.

Of course only you can make that decision, there are some important factors that should be weighed.

“First, how permanent do you feel this relocation is?

Do you have to sell a home before you buy a new home?

Are home prices stable in the area that you are
relocating to?

Going up, going down?

There’s no doubt that buying a home today is more affordable than ever. Low mortgage rates, higher than normal inventory levels and low home values combine to make it a market for buyers. If you already own a home where you currently live, maybe renting it out until the market stabilizes or improves makes sense. If you can hold on to your current home, cover its mortgage, and qualify to buy a new home, you could be in an ideal situation.

One of the best strategies I’ve seen is to initially rent on a month-to-month basis in the area you are considering. This will take the pressure off and allow you to examine the affordability level of your new location. Is it less expensive to rent, or would a monthly mortgage payment be the same or less than paying rent? I will be glad to allow you to pick my brain about areas that will be best for your situation. Get to know the new area well before making a decision. Be sure and weigh all the pros and cons of renting vs. buying, after-all, buying real estate is a big investment.”

Thanks Lee Dworshak

Why is a short sale a viable option for buyers and sellers?

Short sales are gaining traction among lenders because of a new federal incentive. In essence, the government has agreed to absorb a part of the loss that a bank sustains whenever they do a short sale.

"In May, the Treasury Department said it would offer a streamlined framework for short sales and incentive payments of $1,500 to homeowners, $1,000 to loan servicers and $1,000 to second-lien holders," The San Francisco Chronicle reports.

Just 18 months ago, the term "short sale" was not widely known. Today, it's gaining some currency as more and more short sales get done, but it's still a misunderstood concept.

Short sales are when you need to get out of a house and you get the lender to agree to take market value on the sale -- instead of what you actually owe on it. You'll take a hit of about 120 or 130 points on your credit score for doing one.

for the full article click the link: short sale a viable option for buyers and sellers

How does a foreclosure or shortSale effect my credit

I am often asked how does a short sale or foreclosure will impact someone's credit score. A new report from syndicated writer Kenneth Harney now reveals the damage.

Before we go further, please note that these figures below are compiled based on your Vantage credit score. The Vantage score is a fake score manufactured by the three main credit bureaus -- Equifax, Experian and TransUnion. It is not the official score used by most lenders. Yet it still give you a good indication of what to expect with your true credit score.

• A short sale will ding your credit score by 120-130 points.•

For the full article click the link: Foreclosure or Short Sale

Do Lenders Discriminate Against New Mothers

As I work with buyers, it is always interesting to hear the story of what has inspired them to purchase a home. Among some of the most common reasons is that a couple is expecting a child.


I’ve spoken with several couples that have purchased a home or are purchasing a home to accommodate the idea of their growing family.


It is important that you have a knowledgeable real estate agent to help you in todays ever changing lending guidelines.


Everyone has heard that you can’t get a loan these days; that is simply not true, however it is true that lending guidelines have become tighter in the past couple of years to cinch up some of abuses that lead to the “mortgage meltdown.” This has lead to an interesting perception that lenders are discriminating against pregnant women and new mothers, as has been represented in the media recently.


My question is: is this a case of discrimination or do the guidelines that are in place to substantiate a borrower(s) income inadvertently affect households in which there is an impending or recent childbirth?


Click the link for the full article: Do Lenders Discriminate Against New Mothers