Myrtle Beach Real Estate Blog

Five Questions to Ask When Considering a Foreclosure Purchase in Myrtle Beach

Although all Myrtle Beach real estate buyers should have questions they would like answered before proceeding with a contract, there are some key questions you should be asking if you are specifically considering buying a foreclosure property.

1. What is the first step I must take to successfully purchase a Myrtle Beach foreclosure?

   The first step a potential buyer must do is obtain pre-approval from the lender of their choice. Pre-approval is different from pre-qualified and in this day in age the majority of lenders will not even consider a buyer who isn’t pre-approved. Buyers must also determine if the property will be used as your primary residence, second home or for investment purposes. Most lenders have stricter requirements for the purchase of second homes and investment properties. This can include but is not limited to a larger down payment, higher interest rates, and a shorter loan term.

2. What stage of foreclosure is the property in?

   There is no question that in this market there are great deals to be had in Myrtle Beach. However, sometimes what appears to be a great deal can end up being a shocking nightmare. Unless the property has already gone through the entire foreclosure process and is now an REO bank owned property, you could be responsible for some unexpected charges. This can include but is not limited to back taxes, back HOA fees, second mortgages, bank fees, etc. Do your due diligence!

3. Can I ask the lender for better terms?

   It’s no secret that lenders in many areas have been hard hit and drowning in defaults. As a buyer of one of their properties you might be able to use this to your financial advantage. If you have good credit and job security many lenders might be willing to negotiate below-market loan terms at no out of pocket cost to the buyer. Also keep in mind that as a buyer you are also able to negotiate the price of the home.

4. What are the costs associated with buying a foreclosure?

   The costs associated with buying a foreclosure are often higher than buying a home that has not been foreclosed on. This is usually because of deferred maintenance. Unfortunately most homeowners who can not afford their mortgage payment can also not afford routine maintenance on the house. Make sure you have a thorough home inspection by a licensed home inspector no matter what the condition the home appears to be. It does not pay to save a few hundred now only to end up paying thousands later.

5. Should I steer clear of certain neighborhoods?

   If you’re looking for a good investment you should consider steering clear of neighborhoods overrun with foreclosures. Although these neighborhoods might be tempting because they offer the steepest discounts, they will also usually be the slowest to turn around and often risk further depreciation. When looking for foreclosures don’t forget the basics of house buying. Look for the best location, the best schools, and the best transportation options.

Call me with any questions at 843-685-9326 or email me at MarkGouhin@sccoast.net

Updated April 21, 2009

7 Ways NOT to Sabotage the Sale of Your Myrtle Beach Home

I think everyone would agree that the Myrtle Beach Real Estate market has certainly changed over the last few years. With that being said, I find it surprising that so many homeowners have not been given proper advice in this new market. I hope these tips will open your eyes to some very important facts.

1. Statistics are meant to be analyzed. By having a competent realtor look at the statistics in your market they are able to determine any developing trends. Through the MLS system Myrtle Beach realtors are able to create a CMA Summary to assist in establishing the price of your home. This summary holds valuable information for both the homeowner and realtor. It will show how many homes are in your competing market, how many have sold within a certain period of time, how many sales are pending, and how many homes were expired or withdrawn. It also shows the average days on the market, the average selling prices, and the average asking and selling price per square foot. It is imperative that a CMA summary is done. Without it there is no way to know where the Myrtle Beach Real Estate market is and where it is going.
2. Let go of your emotional attachment. It is so common for homeowners to be emotionally attached to their home. The reasons are many. Often it’s because of fond memories or also because of pride in the work and improvements they have done in the home. Whatever the reason, let it go. The numbers don’t lie and your realtor is the one with the knowledge and experience on how to accurately price your home.
3. Demand Exposure. The National Association of realtors reports that 85% of all buyers begin their search for a home online. Those searching for Myrtle Beach Real Estate are no different. It is mandatory that your realtor has a strong web presence and is aggressively promoting your home online. Don’t be afraid to look for proof. Google your realtor’s name and see how they are promoting their current listings. If your realtor is still pushing print advertising as the best thing since sliced bread…you might want to look for another agent.
4. Have easy showing instructions. With inventory at an all time high, I can’t stress the importance of easy showing enough. Home showings must accommodate the buyers schedule not yours. If you have “by appointment only” showing instructions I can practically guarantee that your house will be passed over by realtors and potential buyers. They want to see it and see it now. I’m sure you feel the same way when you’re out looking for property…right?
5. Insist that your realtor promote your home on other realtor’s websites via the Web. Your realtor must allow “public viewing” when they enter your property into the MLS system. This will allow potential buyers to view it from any realtor’s website that offers MLS searches on their site. Always double check to make sure they have entered it correctly. There are also sites such as craigslist.com and realtor.com that your realtor should be promoting your property on.
6. Make your home a showplace. Common sense that so many don’t follow. Listen to your realtor’s opinion on the aesthetics of your home and what can be done to improve it. I understand that everyone has a different budget but often the changes necessary can be done for little or no money. Make sure the front has nice curb appeal and is free from overgrown or dead landscaping. The interior should also be neat, clean and free of clutter. There are many free resources on the web where you can find more specific info on staging your home.
7. Don’t be resistant to price reductions. With so many Myrtle Beach Short Sales and so many Myrtle Beach Foreclosures on the market you must remain competitive. If you have done everything else right and if you don’t see any action on your home in the first 30 -45 days you should seriously consider a price reduction, and continue to reevaluate every 30 days there after until you attract a buyer. The longer your home stays on the market the less noticeable it becomes to other realtors and buyers. Always keep in mind that your goal should not be to have your home listed… it is to have it SOLD!

If you follow this advice you’ll be way ahead of the game and well on your way to selling your home!

Call me with any questions at 843-685-9326 or email me at MarkGouhin@sccoast.net

Updated April 17, 2009

4 Compelling Reasons to Buy Myrtle Beach Real Estate Now!

As a Myrtle Beach Realtor®, I can tell you that the opportunity for anyone interested in purchasing Myrtle Beach Real Estate has never been better. The tried and true rule of thumb, buy low and sell high has never been wrong and we are looking at unprecedented low prices. Why? The main reason is aggressively priced bank foreclosures. Don’t put yourself in the shoulda, woulda, coulda class. Take advantage of the 4 main reasons to buy Myrtle Beach Real Estate as soon as you can:

1. Interest Rates are historically low.
2. There are homes selling for LESS than the cost that you could build them for.
3. The Federal Gov’t is offering an $8,000 tax credit to qualified first-time home buyers.
4. Location (The Blue Atlantic Ocean), Location (Moderate climate with mild winters and warm summers), Location (An abundance of things to do from sports to amusement to lounging)

Interest Rates are LOW!

Current interest rates are below 5% for 30 year fixed mortgages. Take a look at the history of mortgage rates and you can clearly see that these rates are attractive. As history shows, the rates will start to climb to fend off inflation as the economy improves. Now is the time to act.

Home prices are LOW!

In many areas it appears that home prices are approaching a “bottom out”. There has been a quiet buzz going around that indicates activity is picking up. Smart investors are always ahead of the curve and recognize that NOW is the time to start taking action. There is still room to negotiate and there are terrific deals. There is no doubt that there will be plenty of people who will look back with regret if they don’t take advantage of this market…don’t be one of them.

Up to $8,000 Tax Credit

The American Recovery and Reinvestment Act provides qualified first-time home buyers up to an $8,000 tax credit.