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