Buyer’s Advantage™  Keeps You Informed

Everyone knows that real estate on Hilton Head Island is a bargain hunter’s paradise these days but still, you have to be ready for opportunity because others are on the hunt for bargains too!  To know about great new listings or large price reductions immediately, you need the Buyer’s Advantage™.  The system costs nothing but it can deliver valuable information to you fast.  I recommend Buyer’s Advantage™ to all of my clients and many use it to monitor their real estate watch lists like a pro! 

How Buyer’s Advantage™ Works 

1. You describe the kind of property you want and based on your preferences, you receive a list of all of the properties for sale on Hilton Head with all MLS companies that match.  Your inventory will be what you want it to be and it will be held in a private web site dedicated to your search. 
2. At your personal site, you can determine your favorite properties and discard the others.  You can sort the listings by price or newest listings.  You can make notes about the properties and I can read them and comment as well as make my own recommendations for you to consider and tell you why one property may be better than another for you.
3. Then, your personal inventory is updated with new listings automatically or when there are price or status changes.  New and changed listings will always come to the top of your list so you can’t miss them.
4. You will have all of the information you need to make an offer on the property of your choice when you are ready. 

Buyer’s Advantage™ Works Well for All Properties

• Hilton Head foreclosures. 
• Hilton Head luxury homes and villas.
• Economical homes for sale on Hilton Head Island, in Bluffton, Hardeeville and Ridgeland.
• Hilton Head retirement properties.
• Hilton Head investment properties.

There’s No Cost or Obligation

There is no cost or obligation for this service.  All that you need to do is to let me know what kind of property you want and the Buyer’s Advantage™ will deliver it to you.  The description of the property you want should include details about:  

A.   Home or villa
B.   Primary home or vacation home
C.  Personal use only, vacation rental or long-term rental
D.  Price range
E.   Number of bedrooms
F.   Location
G.  What you will do with the property i.e. rent to vacationers, live in it, etc. 

Buyer’s Advantage™ works well and it is easy to use.  On many occasions my clients who use Buyer’s Advantage™ come to Hilton Head Island with their first, second and third choice properties already picked out!   Our work is done on the Internet before they visit and that means that they will spend less time shopping for the property that they have always wanted and more time with their family on the beach, playing golf and other kinds of shopping when they are here!

Some clients use Buyer’s Advantage™ to make offers over the phone for properties that they know well; sometimes they know about a new listing before I do and that’s perfectly okay because when my clients use this technology, we both win.   No agent can monitor every client’s wish list as well as an automated system and the Buyer’s Advantage ™ is as good as it gets.  Knowledge is power and foreknowledge is even more powerful!  

 Of course, you are welcome to search all Hilton Head MLS listings at any time on your own at gogated.com but to get the information that you need with automatic updates please tell me about the bargain that you have always wanted and we’ll get started.   The Buyer’s Advantage™ gives you a personal inventory with important and valuable updates to help you find and track Hilton Head foreclosures and other properties like a pro!

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

This Southern style Tilton Group Signature Home at 73 Hampton Lake Drive in Hampton Lake became the Designer’s Show House in May, 2009 to benefit the Hilton Head Alzheimer’s and STARS charities.

Hilton Head Alzheimer’s and STARS Charities

The Designer’ Show House at Hampton Lake in Bluffton, South Carolina was open from May 8-24 to raise funds and increase awareness of two important Hilton Head non-profit organizations:  Alzheimer’s Respite & Resource and STARS (syncope trust and reflex anoxic seizures).  Tilton Signature Homes and ten talented Hilton Head interior designers worked together to transform a new Tilton Group Signature Home into a Designers’ Show House, exhibit their talents and discuss varying facets of casual southern elegance and the latest trends in interior design and home decor. 

The living room has a high ceiling with a high window and it is open to the foyer, dining room and kitchen.

Alzheimer’s Respite and Resource

Alzheimer’s Respite & Resource was established in 1997 offering a social day program for those suffering from Alzheimer’s and other forms of dementia, operating one day a week.  Today, recognizing the unmet need in the community to help both the patient and the caregiver, AR&R offers a high quality social day program five days a week and over 7,500 hours of respite care each year.  Alzheimer’s Respite & Resource strives to be a center of excellence for persons with Alzheimer’s and their families by providing daycare programs and education in a compassionate and dignified manner.  For more information visit www.alzheimersrr.org or call 843-842-6688

The kitchen has a pine floor, bead-board island, PaperStone counter tops, stainless steel appliances and it is open to the living room and a breakfast area unseen in this picture, to the right (back of house).

STARS (Syncope Trust and Reflex Anoxic Seisures)

STARS (syncope trust and reflex anoxic seizures) was founded 16 years ago in England by Trudie Lobban after her daughter was diagnosed with reflex anoxic seizures, a form of syncope.  Due to the overwhelming response from United States sufferers, STARS-US was established.  Syncope is a medical term for fainting that is caused by a sudden lack of blood supply to the brain.  This loss of consciousness happens when a drop in blood pressure occurs or a sudden change in heart rhythm decreases the amount of blood that the heart pumps throughout the body.  When the blood supply slowly tapers off or when blood pressure falls significantly, several warning signs appear before loss of consciousness including:

• lightheadedness
• fading of vision
• buzzing in the ears
• In some cases, when the brain is deprived of oxygen due to decreased blood flow, epileptic like symptoms may occur, such as stiffening and spasms.

Syncope affects a million and a half people each year. Tragically, more than 40% are misdiagnosed or go undiagnosed.  STARS a national nonprofit organization is committed to improving the quality of life for individuals and their families that are coping with a syncope condition. The main focus is educating and supporting sufferers, their families, the medical community and the general public by offering a support system where they can get a better understanding of these conditions.  For more information about syncope and STARS visit www.stars-us.org or call 843-785-4101

The master bathroom with dual vanities, custom cabinets, limestone floor and shower and spa tub.

 The Tilton Group Signature Home

Tilton Group President Steve Tilton said, “The event was able to expose people to this unique style of building and interior design while raising money for two very worthy charities.”  Tilton grew up in the Hilton Head lowcountry and has been building custom homes since 1994 with a philosophy of building dream homes that offer each homeowner with today’s lifestyle the traditional lowcountry experience of spending of spending casual and quality time with family and friends. 

Tilton Director of Operations Ron Bushaw said that the home was designed using Southern vernacular construction with a big back porch and a bead board ceiling, with many quality reclaimed materials like pine floors and PaperStone™ counter tops.   The house is an EarthCraft certified green home, energy star compliant and it has a smart panel for multimedia.  Some other details are:

• 3,300 heated square feet with everything is on one floor except the guest suite over the garage
• The guest suite can be used as a 4th bedroom, game room, office, studio or fitness area.  
• Four and a half bathrooms.
• ‘Split’ first floor plan with the master, 2nd and 3rd bedrooms separated by the center home areas: the foyer, dining room, living room, kitchen and breakfast area.
• The living room has a high ceiling with high window.
• The master bathroom has dual vanities, custom cabinets, a spa tub and limestone shower and floor.  
• The large back screened porch has a fireplace, barbecue and stone floor for luxurious outdoor living.  
• The exterior of the home has hardiplank siding, wood trim and the windows have wood casing. 
• The home has a two-car garage.
• Located on a .42 acre lot.

• The home may be purchased for $799,000. 

The back porch opens from the living room and offers luxury outdoor living.

The Hilton Head Interior Designers

Ten interior designers from six Hilton Head interior design firms participated in the Designer’s Show House at Hampton Lake:

• John Kilmer and Jennifer Kirkland, Beverly Hall Interiors.
• Suzie Dixon, Casual Living.
• Bob Cooksey and the design team at Ethan Allen.
• Michelle Wood, Fine Furniture Galleries/Coastal Living Interiors.
• Kay Merclean and An Pickhardt, Georgia Furniture and Interiors.
• Michelle Pearson, Interior Motives.

During the two-week duration of the Show House, these designers and others scheduled talks at the house about interesting topics. 

• Mike Woodall of Kravet and Lee Sofa Fabrics and Furniture spoke about “The Latest Trends in Color and Fashion for Exclusive Quality Homes and the Discerning Consumer”. 
• Jennifer Kirkland of Beverly Hall Interiors spoke about “Window Treatments #101″. 
• Bud Martin of Southern Palmetto Landscapes discussed “Going green with water conservation and native plants”.
• Gerardo Alvarex of Divine Touch, “Decorating with Paint and Faux Finishes”.
• Bob Cooksey of Ethan Allen talked about “All Phases of Down Sizing” and “What you always wanted to ask and Interior Designer”.
• Laurel Greif of Le Cookery spoke about “In the Kitchen - Easy Party Foods”. 

Each of the four bedrooms were decorated differently and by different designers.

The Hampton Lake Community and Real Estate

The private freshwater lake community located in Bluffton, South Carolina opened in 2006 and in 2008 was awarded the “Best Community in America” award by the National Association of Home Builders.  The location, quality of the residences the amenities has made Hampton Lake one of the most popular new gated communities in the Hilton Head and Bluffton area. 

Hampton Lake is located on the Bluffton Parkway just 9 miles from Hilton Head Island in Bluffton, South Carolina, 21 miles from Beaufort, 30 miles from Savannah and 98 miles from Charleston.   Hampton Lake’s location The community has 906 total acres that include 345 preserved for nature and a 165-acre lake with a depth of about 8 feet, 7 miles of navigable waterways and 15 miles of shoreline.  The community will have approximately 900 residences that include both custom homes and villa homes.  There is a top-quality model home program with many builder-participants.  

 Hampton Lake’s amenity village is called “Lakeside” and includes:

• “Fitness Central”, a state-of-the-art spa and fitness center.
• “Adventure Lagoon”, a family-oriented, resort style swimming pool with a ‘river.’
• “The Cool Pool”, a separate area with cabanas for adults only.
• “Lakeside Courts”, four clay tennis courts.
• “The Lakehouse” with Blackwater Bill’s Restaurant.
• “Sandi Point”, a lakefront beach area with tiki huts for shade.
• “Doc’s” community boathouse featuring boats for members’ use and “The Tackle Box” bait, tackle and convenience store.
• “The Racks” canoe and kayak storage.
• “Reunion Field”, a picnic area.

Today, the prices of villas and patio homes at Hampton Lake begin at about $315,000, custom home prices start at about $700,000 and building lot prices start at about $145,000.  For more information about the custom home featured in this article, Hampton Lake or any other Hilton Head area real estate, please call the Hilton Head Gated Communities Specialist® today!

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

This house is for sale for $6,975,000 and it is the most expensive foreclosure on Hilton Head Island today.  It has approximately 18,000 heated square feet, eight bedrooms, ten full bathrooms, 4 half bathrooms, indoor and outdoor swimming pools, a five-car garage, private boat dock and water views of Broad Creek and the Calibogue Sound.  Foreclosures start for less than $100,000.  For information about all foreclosures, contact Richard Kadesch.

•  About 3% of all Hilton Head homes for sale today are foreclosures (80 of 2,779 total).   

• About 4% of all Hilton Head villas for sale today are foreclosures (55 of 1,279 total). 

These numbers are for foreclosed proeperties that are for sale.  Most Hilton Head homes and villas are not for sale and the number foreclosures compared to all homes and villas on Hilton Head today is much less than two or three per cent.   

Foreclosures Are Often The Lowest Prices

When Hilton Head foreclosures are listed for sale they typically are the lowest priced properties for sale in their neighborhoods.  Higher-priced properties cannot always compete with foreclosures but this is not always true; foreclosures affect some communities more than others.   

• Hilton Head custom homes vary greatly by price, size, features and floor plans.  Because they are so different from one another, one custom home may be nothing like what a buyer wants even if it is a foreclosure.  In addition, communities with custom homes have the fewest foreclosures.     
• More ’cookie cutter’ homes are foreclosures than custom homes and ‘cookie cutter’ communities are effected more by them.  The homes are so similar to each other that a low foreclosure price can often be the best buy.
• Condominiums have more foreclosures than homes, are generally similar to one another and  banks have the tightest lending requirements on condominiums.  These issues make condominium  foreclosures a problem for other condominium sellers and for their homeowner association that has less income from regime fees when there are too many foreclosures.   

Monitor Foreclosures Like a Professional

Foreclosures can be a golden buying opportunity.  More people are buying foreclosures now and if you would like to receive a list of all foreclosures on Hilton Head Island or Bluffton with no cost or obligation, please let me know.  I can provide any list of properties to you, including foreclosures that can be sorted by location, price and other features as you want.  For Hilton Head foreclosures or any real estate on Hilton Head Island, call Richard today!

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

Front entrance with no steps to #10 Townhouse Tennis III in Shipyard.

Just Listed:  #10 Townhouse Tennis III

#10 Townhouse Tennis was just just listed with Go Gated Realty®, the Hilton Head Gated Community Specialist®.  It is in like-new condition and especially desirable with:

• Beautiful water and golf views from the living room, kitchen, both back bedrooms and the patio.
• The entire first floor is tiled: foyer, kitchen, living-dining area, two bedroom and two bathrooms. The upstairs master bedroom bath also has a tiled floor. The kitchen has granite counter tops.
• The villa is sold completely furnished, including area rugs.
• 1,750 SF of living space.

The location, size, features and quality make this townhouse attractive to anyone who wants a vacation rental property, a second home or as a primary home on Hilton Head Island.  

The water and golf view from the back of #10 Townhouse Tennis III in Shipyard.

 First floor Master Bedroom, Water and Golf View

Buyers who want a luxury home near the beach on Hilton Head Island will want to look at #10 Townhouse Tennis Villa in Shipyard.  It compares well to other three-bedroom homes or vacation rental villas because:  

• the master bedroom and second bedroom on the first floor and there are no steps for entry to the home.  This is often preferred by Hilton Head retirement and pre-retirement buyers but is attractive to everyone.   
• the outside maintenance and services are provided by the villa association.
• Townhouse Tennis Villas are the only Shipyard villas to have carports. 
• a large storage room is attached to the carport.
• Townhouse Tennis Villas are the only villas in Shipyard to have private clay tennis courts.
• quiet community swimming pool.
• pets are allowed for owners.
• great back patio and front courtyard.
• outside barbecuing is allowed.
• located in Shipyard with private beach access, a gated community with two 24-hour manned security gates.  To read more about Shipyard, see below.  

This Shipyard townhouse is sold completely furnished and is ready to use or rent.

Located In Shipyard on Hilton Head Island

Shipyard is one of Hilton Head Island’s most popular vacation and residential gated communities, located on the south end of Hilton Head Island, between Sea Pines and Palmetto Dunes, defined by a beautiful scenery of lakes and semi-tropical foliage, high quality villas, custom homes, a golf club, tennis club, the Crowne Plaza Hotel, private beach access and two gated entrances.  

The Shipyard private beach access is next to the Crowne Plaza Hotel.  The Hotel offers short and long-term memberships to their fitness center, indoor swimming pool, has restaurants and business meeting environment by day and nightlife environment by night.

The Shipyard golf club has three 9-hole courses, is open to the public and offers optional memberships.  The golf club has a teaching program, full pro shop and a restaurant. 

Shipyard is home to the Van Der Meer Tennis Center with 20 tennis courts: 13 Hard Tru, 7 hard, 8 lighted and 3 indoor.  The Center offers teaching programs to players of all levels and a tennis academy for teachers.

Shipyard has two security entrances to the community:  one on Pope Avenue and another on the William Parkway. 

Hilton Head Luxury Villa  - Moderately Priced

At $434,900,  #10 Townhouse Tennis III is priced relatively low.

• The average price of all three-bedroom villas for sale in Shipyard today is $444,000.
• Few villas for sale today have both water and golf views.
• Only Townhouse Tennis III villas have carports.
• All homes in Shipyard cost more today than #10 Townhouse Tennis and one of the homes that costs less does not have a carport or garage!

The cost of ownership will include, in addition to any finance cost:

1. the monthly regime fee of $411.  This includes water and sewer and  maintenance of the common areas and amenities, trash pick-up and pest control.
2. $2,600 per year for hurricane, fire and flood insurance.
3. utility costs for electric, cable and telephone. 
4. property taxes, approximately  $2,200/year as a second home and much less as a primary home.
5. Shipyard annual POA of $780.

The owner paid $565,000 for this property in March of 2006 and he will take a loss on this property to buy an even larger second home on Hilton Head Island at today’s depressed price.  This is a perfect example of price capitulation that creates a window of opportunity for the right buyer.  To look more and compare the location, view and features of this Shipyard luxury home with any other, contact Richard Kadesch today!

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

A wide variety of Hilton Head homes and villas are listed as short sales today.

What Is a Short Sale?

Short sales are abundant among Hilton Head real estate listings these days but many buyers do not know what they are.  

A ’short sale listing’ is one that has a market value less than the mortgage owed plus closing costs.  In other words, the owner owes more than the home is worth. 

To sell, the property must be listed for less than the mortgage amount plus the closing costs and whoops! - the seller will owe money at closing, not receive money.   Some sellers are ready, willing and able to take the loss and if so, that’s not an issue for the buyer.  However, if the seller cannot take the loss at sale, the bank must agree to take the loss with the motive of avoiding a foreclosure.  I see more and more properties listed today as short sales with large losses that banks are not willing to take outside of the foreclosure process.    

Short sale listings can be uncertain for both the buyer and the seller because many sellers do not know if their bank will allow the short sale to occur!  The Seller and seller’s agent can lead a buyer on with the hope of a low-priced sale that will probably not happen because:  

• the bank is not willing to take a short sale loss. 
• the seller will not or cannot pay any part of the loss to the bank.
• the seller has not demonstrated an acceptable hardship to the bank. 
• the bank begins foreclosure before a short  sale offer comes in.
• the bank may prefer foreclosure rather than a short sale.  

For these doomed short sale listings, a buyer who makes an offer can wait for an acceptance from the seller’s bank that does not come quickly or at all.  While waiting, the buyer can miss out on other good buys are can be sold without delay.  

Recently I have seen listings where the agent has written to other agents: ”Don’t waste your time.  The bank does not respond”.   Recently I called an agent to ask about his short sale listing and had it gone to foreclosure because it was listed so long ago.  He told me that that bank had refused to respond to good offers for the property and that he should probably withdraw it from the market - but it was still listed as a short sale.  The property was withdrawn soon after our discussion and other short sales are withdrawn when agents learn that they are wasting their time and ours for various reasons.

When owners do not make mortgage payments for 90 days, banks usually begin the foreclosure process.    This can further complicate a short sale negotiation and some banks have one division to deal with distressed properties and short sales and another division that deals with foreclosures.   The short sale division may not be able to discuss a property during the foreclosure process and finally, the bank often prefers to foreclose rather than agree to a short sale.  Sorry- I can’t explain this fully but I know that it happens.  During the time that a property has gone from being a short sale to a foreclosure, it still owned by the seller and remain on the market listed as a short sale! 

Get The Facts Before Offering

This is not to say that short sales do not happen or that they are always a waste of time or that you should not be interested in them.  But, before you take your time to offer on a short sale listing, you should try to find out:

• If the loss that the owner and/or bank must take to allow the sale is large or small.
• Has the bank agreed to take the loss and allow the sale?
• Is the Seller willing and able to take some of the loss?
• Has the bank started foreclosure on the property?

The answers to these questions will tell you much more about how much uncertainly you can expect with an offer.  You don’t want to waste your time on a shaky short sale while another desirable property that you could have had sells to someone else.  As always, a good agent can investigate and hep you evaluate the situation and the options available to you.  

Receive All Hilton Head Area Short Sale Listings Without Cost or Obligation

If you would like to have a list of short sale properties, foreclosures or other properties, without cost or obligation, please let me know.

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

Hilton Head Luxury Home Prices Were 23% Lower In 1st Quarter 2009 vs 1st Quarter 2008

This brand new home in Palmetto Hall for sale $799,000 has had two price reductions.

Every day there are more reductions of prices of Hilton Head luxury homes.  It seems like the higher the price, the greater the discounts; $25,000, $50,000 and even $100,000 discounts are common.  Recently, I received notice of a beautiful luxury home with swimming pool and three-car garage in a top Hilton Head neighborhood that the owner paid $1.1million for in 2001, made over $100,000 of improvements and now it is listed for $750,000!   If you want more detail, let me know. 

National price forecasts predict year over year price reductions of 6.3% to 19% for 2009.  I have not seen any articles that address this comparison and so I decided to make a sampling and find out if our luxury Hilton Head home market was following national forecasts.  It would be good to know: 

1. How do Hilton Head luxury home price reductions compare with the national forecasts?
2. Have luxury Hilton Head home prices hit bottom?  
3. Is this a good time to buy?

Another question, but not directly related to price reductions is:  

   4.  Are more people buying luxury homes on Hilton Head Island or in Bluffton?

The numbers I looked at are from the MLS of Hilton Head Island and they require this disclaimer: “The statistical data contained herein has not been verified by the Multiple Listing Service of Hilton Head Island, Inc. and the publication of information hereof is not a representation or warranty of any fact whatsoever.”

Three luxury residential gated communities on Hilton Head Island and three luxury gated communities in Bluffton, the town just across the bridge from Hilton Head Island are representative for our purposes.  The  names of the communities, their locations and their average home prices are given below.   

The Average List Prices of Six Gated Communities on Hilton Head Island and Bluffton Today

Many other luxury gated communities in both Hilton Head Island and Bluffton could easily have been used for numbers such as Sea Pines, Palmetto Dunes, Hilton Head Plantation, Palmetto Hall, Port Royal Plantation, Moss Creek, Hampton Hall and others but I didn’t want to crunch more numbers than necessary.  Prices in the chart are averages and each community has homes for sale at much higher and much lower prices.  If you would like to receive more information about any gated community on Hilton Head Island or Bluffton, please let me know.

Luxury Home Sales of the First Quarter 2008 vs. First Quarter Sales 2009

The numbers do not give a large quantity of data and more home sales would give more reliable averages, but aside from Wexford and Long Cove, it is interesting to see how similar the per cent decrease of luxury home prices have been in this simple analysis.  Therefore, it may be reasonable to conclude that luxury home prices have fallen by about 23% between the first quarter of 2008 and the first quarter of 2009.  I have no explanation about why there are no home sales in the first quarter of 2009 after there were 7 for the same period of 2008.

Many More Luxury Homes Sell on Hilton Head Island than in Bluffton, South Carolina

This is a small number of homes from which to draw conclusions, but the number of luxury home sales that occurred in the thee Hilton Head Island gated communities in the first quarter of 2008 was 15.  Only 7 luxury homes sold in the three Bluffton communities during that same time. 

In the first quarter of 2009, 12 luxury homes sold in the three Hilton Head Island gated communities and 7 sold in Bluffton.   Hilton Head Island luxury home sales in our sample communities are about twice the luxury home sales in the Bluffton sample communities for the first quarters of both 2008 and 2009. 

Interpreting numbers can be tricky but the greater number of luxury sales on Hilton Head vs Bluffton in these six communities corresponds with my own sales experience that people are more likely to spend more for a home on Hilton Head Island than in Bluffton.  There are more luxury gated communities on Hilton Head Island than in Bluffton, South Carolina so it is fair to say that if this ratio is consistent among Bluffton and Hilton Head Island luxury communities, many more luxury homes are sold on Hilton Head Island than in Bluffton.  Although none of the three Hilton Head Island communities have ocean front locations, other communities on Hilton Head do have oceanfront, ocean oriented and ocean view homes that often cost more and are in high demand because close proximity to the beach is one of the biggest reasons people will buy expensive homes. 

Are Hilton Head Luxury Home Prices at the Bottom?

For prices to stop going down:

1. More homes must sell than the number of new listings and foreclosures (not yet).
2. Finance must be available and attractive for luxury homes (yes! just arrived!)

But, nobody knows what will happen next.  There are reasons to believe that prices are low enough already and there are reasons to believe that prices could go a bit lower. 

Reasons for lower prices include:

1. The same forecasts that predict 6.3%-19% price reductions this year nationally also predict that prices will stop falling in 2010.  
2. If sales do not increase, inventories will increase and some sellers will lower their prices.
3. If foreclosures increase, more lower-priced properties will be for sale.
4. If the economy does not improve, lower priced short sales will continue.

Reasons that prices are low enough include:

1. The price decreases in the first quarter of 2009 may be attractive enough for buyers.
2. New, lower jumbo loan interest rates will stimulate sales and reduce inventories.
3. Forecasts for lower prices include many lower priced homes with higher defaults rates than luxury homes.

4. Sellers become less negotiable with news of an improving economy.

Is This the Time to Buy a Luxury Home on Hilton Head Island?

Yes, as long as you will hold the property for at least a few years.  Reasons to buy now include:

1. Outstanding inventory.
2. Eager, negotiable Sellers.
3. It takes more luck than skill to call an absolute bottom in prices and how do you do that on a specific luxury home? (you can’t)
4. Lowest available interest rates in a generation.   

5. Luxury homes are unique homes in valuable locations that cannot be duplicated.

My advice to buyers is that when you find a luxury home today at a good price that meets your needs, this is a great time to buy.  Don’t worry about the possibility about some additional drop in average prices if you will hold the property for at least a years.   You will be enjoying your house!   

There are many luxury homes for sale today at prices below the average first quarter 2009 sales prices.  To find a bargain luxury home in the right gated community for you, please call the Hilton Head Gated Communities Specialist® today!  Yes, I have all foreclosures and short sales - just ask.

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

Morning Golf Costs Less in Bluffton than on Hilton Head Island

The Clubhouse at Palmetto Hall on Hilton Head Island.  Palmetto Hall has two championship golf courses designed by Robert Cupp and Arthur Hills.

Golf in Bluffton costs less in the morning than morning golf on Hilton Head Island.  If you vacation on Hilton Head Island and you are willing to drive about 2o minutes to play golf in the morning, you will save some money.  Bluffton’s lower morning golf rates do not mean that the golf courses in Bluffton are not as good as Hilton Head Island golf courses.  As a whole, they are as good or better with Bluffton courses designed by Arnold Palmer, Gary Player, Fuzzy Zoeller, Davis Love III and others.

Some Afternoon Golf on Hilton Head Island Costs Less Than In Bluffton

Golf prices on Hilton Head Island are the highest of the year during April until mid-may when they come down.  I called to find out what the local Hilton Head Island and Bluffton golf courses are charging tourists now and just as I expected, a morning round of golf in Bluffton costs about $35-$50 less per person than a morning round of golf on Hilton Head Island.  But, after 2pm, some clubs on Hilton Head Island charge the same or less than what several clubs in Bluffton charge after 2 pm.

The driving range and practice green at the Rose Hill Golf Club in Bluffton, South Carolina

Some Hilton Head Island pros say that Bluffton and Hilton Head Island are different golf markets.   Convenience is certainly a factor when booking tee times, but  some visitors may have no problem driving a few miles to save some money on golf, especially in this economy  Non-playing spouses might like to enjoy the great shopping in Bluffton while they are there that includes two outlet malls near the bridge to Hilton Head Island.  

The prices for all of the Hilton Head Island and Bluffton championship golf courses were quoted to me by telephone yesterday.  The rates are presented in ascending order with separate lists for Hilton Head Island and Bluffton golf courses.  All courses have their highest prices in the morning and their lowest prices after 2 pm every day except for the Sea Pines Resort that has one price all day.  Prices are given without the 7% hospitality tax that must be added for the total cost with the exception of Old South Golf Links that quotes rates with tax included.   One pro shop attendant said that the rates she quoted are better than the rates on their web site, so enjoy some Southern hospitality and call for the most current and best rates.  Note that rates for Hilton Head golf are lower during the summer and lowest during the off-season months of November-February. 

If you are wondering if local players pay these high rates - we don’t.  Residents with local driver’s licenses typically pay $35-$40 per round in Bluffton all year and on Hilton Head Island, some clubs offer  good off-season rates to locals.  Of course, many locals belong to one of the many outstanding private golf clubs on Hilton Head Island and in Bluffton.  If you would like information about private golf on Hilton Head Island, please let me know.

Hilton Head Island Golf Courses and Rates: Mornings Are $91-$255.

1. Palmetto Dunes Oceanfront Resort, Fazio Course: $91 before 11am, $63 after 11am, $54 after 2pm.  843-785-1138.  www.palmettodunes.com. 
2. The Country Club of Hilton Head in Hilton Head Plantation: $95 before 11:30am, $69 after 11:30am, $49 after 2:30pm.  Rates for mid-day and afternoon play must have a newspaper ad to qualify or the rate will be $80 after 11:30am and $69 after 2:30pm.  843-689-4653.  www.hiltonheadclub.com.
3. Golden Bear Golf Club at Indigo Run:  $95 before 11:30am, $80 after 11:30 am, $59 after 2pm.  1-843-689-2200.  www.goldenbear-indigorun.com.
4. Port Royal Golf Club and Shipyard Golf Club: $99 before noon, $80 after noon, $62 after 2pm.  1-800-2FindIt18.  www.Hiltonheadgolf.net.
5. Oyster Reef Golf Club in Hilton Head Plantation and Palmetto Hall Golf Club with Robert Cupp and Arthur Hills Courses: $109 before noon, $88 after noon, $68 after 2pm.  1-800-2FindIt18.  www.HiltonHeadgolf.net.
6. Palmetto Dunes Oceanfront Resort, Robert Trent Jones Course: $117 before 11am, $80 before 2pm, $59 after 2pm.  843-785-1138.  www.palmettodunes.com.
7. Palmetto Dunes Oceanfront Resort, Arthur Hills Course: $119 before 11am, $95 after 11am, $65 after 2pm.  843-785-1140.  www.palmettodunes.com.
8. Sea Pines Resort Ocean Course:  $120 all day.
9. Sea Pines Resort Heron Point Course: $140 all day.
10. Sea Pines Resort Harbourtown Course: $255 all day, includes forecaddy with recommended gratuity of $25 per bag.  Closed until May 20 for the PGA Verizon Heritage Classic.  843-842-8484 or 1-800-seapines.  www.seapines.com. 

 Bluffton Golf Courses and Rates; Mornings Are $45-$95

1. Rose Hill Golf Club: $45 before 2pm, $30 after 2pm.  1-843-757-9030.  www.golfrosehill.com.
2. Island West:  $48 before 2pm, $37 after 2 pm.  1-843-689-6660.  www.golfshop@Islandwestgolf.net.
3. Eagles Pointe Golf Club: $79 before 11am, $65 after 11 am, $55 after 1pm.  1-888-325-1833.  www.eaglespointe.golf.com.
4. Crescent Pointe Golf Club:  $85 before 11am, $75 after 11 am, $65 after 1pm.  1-888-325-1833.  www.crescentpointegolf.com. 
5. Hilton Head National Golf Club: $86 before noon, $80 after noon.  1-843-842-5900,  www.HiltonHeadNational.com. 
6. Old South Golf Links:  $95 before noon, $80 after noon.  1-800-257-8997.   www.oldsouthgolf.com. 

If you are planning to relocate to Hilton Head Island or get a second home, please call on me.  I am a Hilton Head Buyer’s Real Estate Agent with 34 years of local real estate experience and I have all of the information that you want about Hilton Head real estate and golf.   Allow me to save your time  and money and find the right home, club and community that you want.  To start the process with no obligation, please click here.

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

Lower Hilton Head Jumbo Rates Will Help Sales

More money and better terms for Hilton Head Island luxury real estate lending is one of the recovery signs that we have been waiting for.  In just the last week, several Hilton Head lenders have advertised jumbo rates @ 6.375%, the first significant drop in jumbo rates in more than a year, down from 6.875%.  This reduces a $600,000 loan payment by about $200 per month.

Expensive properties are often financed with loans greater than $417,000, called non-conforming or ‘jumbo’ loans.   These loans are not purchased by Fannie Mae and did not benefit from the government’s stimulus package.  Jumbos are financed by independent investors like insurance companies, pension funds, hedge funds or some large banks.   The luxury jumbo market has been waiting a long time for the difference in interest rates of conventional and jumbo mortgages to narrow.  Jumbo loans have been about two percentage points higher, at about 6.875% -now 6.375%.   

Loans under $417,000 are called conventional loans and they are offered by Hilton Head lenders today at 4.875% with no points, 30-years, fixed. 

No PMI on Hilton Head Real Estate Jumbo Loans

More good news for luxury buyers is that at least one Hilton Head jumbo lender does not require private mortgage insurance.  This saves the borrower about $85 per $100,000 borrowed or about $510 per month on a $600,000 mortgage.

Lower interest rates and and no mortgage insurance combine for a savings of about $710 per month for a $600,000 loan.  Many Hilton Head Island luxury properties have higher mortgages for even greater potential savings for the buyer/borrower. 

Conventional borrowers have had lower interest rates for some time and now luxury buyers have lower rates too.  To discuss the real estate that you want to buy and the lenders who can finance your purchase, please call or email the Hilton Head Gated Communities Specialist®today! 

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

#42 Hidden Lakes Lane in Bluffton, South Carolina has three-bedrooms, two bathrooms, a two-car garage and a fence back yard; for sale with Go Gated Realty for $174,500.

The Biggest Selection Is In Bluffton, S.C.

Homes that cost less than $200,000 have always been a ‘hot’ market on Hilton Head because many people can afford them.   Prices on lower-priced homes have fallen along with the rest of the real estate market into this affordable price range and with low interest rates, this is the most affordable housing market since affordability has been measured.   Buyers who are looking for these kinds of homes include young families, first-time home buyers, singles, Hilton Head investors and retirees.  

A $200,000 mortgage costs only $1,074 per month, fixed over 30-years with 5% interest.  This is less than the rent for many comparable homes that cost less than $200,000.  

Bluffton, South Carolina is just across the bridge from Hilton Head Island is and it has the greatest selection of homes in the area for less than $200,000.  Today, there are 64 three-bedroom homes with 2-car garages for less than $200,000 for sale from all Hilton Head MLS companies.  These are newer, attractive homes that are located in relatively new communities that are close to schools and that have neighborhood swimming pools, tennis courts and playgrounds.  

“Hilton Head Home” in this article refers to a home in the Hilton Head area.  This includes Bluffton and  areas near and including Hilton Head island.  Homes on Hilton Head Island start at higher prices than those in Bluffton and for example,  there are only 9 homes on Hilton Head island today that are listed for less than $200,000 and none have a garage.  The lowest price for a home with a two-car garage on Hilton Head Island today is $250,000. 

To see the selection of Bluffton homes for less than $200,000 yourself, please visit my web site GoGated.com.  Choose ‘Homes’ and the price range you want and select area 16 for Bluffton, out-of-plantation homes.  Interactive maps on my web site will show you the locations of the communities and the neighborhood finder on my web site will let you make quick community comparisons. 

It costs nothing more to have a good Buyer’s Agent on Hilton Head assist you and represent your interests before, during and after your purchase and understanding which properties are best for you takes time and experience.  I love working with Hilton Head first-time home buyers and retirement buyers who typically want lower-priced homes.  If you would like to receive a list of homes that will meet your needs, and with no obligation, please contact me.

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories

Home Affordability Index Is At An All-Time High

Many voices say that now is the best time ever to buy a home.  This fact is often mentioned regarding the  opportunity for Hilton Head first-time home buyers but it is true for all home buyers as well.  One reason why is the affordability index. 

The affordability index is the amount of your income that it takes to make payments on a conventional home loan for a median priced single family home with 20% down.  According to the National Association of Realtors, this index rose to an all-time high of 158.8 in December, 2008.  This same index bottomed out in July, 2006 at 99 when home prices were much higher than they are today.  As prices came down, affordability went up.

Another index by the National Association of Home Builders and Wells Fargo Bank confirms high affordability today but measures it differently.  It is called the Housing Opportunity Index and it is the percentage of all new and existing homes that were sold during a three-month period that were affordable to a family earning the national median income.  This index measured affordability at 46.6% for the 4th quarter of 2007, 56.1% for the 3rd quarter of 2008 and most recently 62.4% for the 4th quarter of 2008! 

Both indexes tell us that the low price of homes today make them more affordable than ever to more people.  Because prices continue falling, it is reasonable to expect that the next measure of home affordability will be even higher than the last.  The trend toward lower prices continues and as it does, homes are more and more affordable to more and more buyers.   For owners who want a villa as a residence, there is a good selection for less than $100,000 right here on Hilton Head Island!

Hilton Head Affordability Mirrors National Affordability 

These national numbers are consistent with lower home prices that we have on Hilton Head Island today and in Bluffton, South Carolina, the fast-growing town just across the bridge from Hilton Head Island.  While Bluffton does have some very exclusive gated communities, Bluffton is generally more affordable than Hilton Head Island with many homes priced under $250,000 and $200,000.   To see for yourself, search all MLS home listings at GoGated.com.  Set your price range and search area 16 which is Bluffton Off-Planation. 

All Hilton Head Home Buyers Benefit With Lower Prices

Affordability is up and all buyers benefit today by homes for sale at lower prices and greater affordability.  This includes the buyers of luxury homes, first-time home buyers and retirement home buyers.  Let’s face it, everybody loves a bargain and greater affordability are the silver lining for buyers in today’s economic crisis.  

Low Interest Rates Contribute to High Affordability 

Today’s low interest rates mean lower monthly payments.  Conventional 30-year interest rates have been steady around 5% recently and as low as 4.75% yesterday!  Low interest rates combine with low real estate prices for higher affordability.  A quarter per cent difference of interest per $100,000 payment is $16 per month or $32 per month for a $200,000 mortgage.  The affordability of all properties is effected by interest rates and all buyers appreciate lower payments. 

To discuss how much you like bargains, saving money and your love of affordability, please call or email the Hilton Head Gated Communities Specialist today!

Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@gogated.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories