Archive for the ‘The Hilton Head MLS’ Category

Hilton Head homes are selling well at all prices, like this home in Indigo Run.

Homes Priced Less Than $450,000 Are Most Popular

Several sources tell us what buyers want to pay for a home on Hilton Head:

• Responses to print ads – there are more responses in recent months.
• Responses to on-line listings, also up.
• Calls from buyers - my favorite by far, also up in recent months.  Nothing beats speaking directly with someone to learn about their interests.
• Comments from agents who talk about their experiences. 
• Hilton Head MLS statistics.   
• News articles that combine information from the above, like this article.

Opinions about the market based on personal experience can be like  like blind men who define the elephant by which part of the elephant they touch.   Statistics can be interpreted differently by different people and so all sources of information are significant.  Engineers love numbers; everyone likes anecdotes. 

I already knew that lower-priced homes were selling well based in part on the first-time home buyer stimulus of recent months, now extended.   But, I wasn’t sure about how well higher priced homes were selling.  I was happy to see that homes s in all price ranges are selling well on Hilton Head today.

The direction of prices will be for another article.  This article does not try to define whether prices are going up, down or sideways except indirectly nor do I try to address the  the sale of lots or villas - just houses.    It is understood that most of the homes sold in every price range are bargains compared to what they sold for in recent years and even one year ago. 

The numbers in the chart below are from the Hilton Head Multiple Listing Service and they summarize homes sales from the entire Hilton Head area, not just Hilton Head Island.   Hilton Head  means the entire area and this includes  more than just Hilton Head Island; it also includes Bluffton, Daufuskie Island, Okatie, Hardeeville and additional outlying areas.  For many people today, Hilton Head  means everything from Rt 278 to Sea Pines whereas Hilton Head Island means just the Island itself.  

Hilton Head Homes Sold in the Last Six Months

*S/L is the ratio of how many homes have sold in the last six months compared to the number of homes listed.  The higher the ratio, the more likely that prices will be steady or increase in the future.   A low ratio could mean that few homes are selling and prices may have to come down to achieve sales.  Most every group of properties shows a strong, healthy ratio of number of homes sold to the number of homes listed.

**C+P/S is the ratio of contingent and pended homes compared to the number of homes sold in the last six months.  This says whether the number of homes under contract shows an increase, decrease or no change from the sales velocity of the last six months.   Almost all price ranges show an increase in the number of sales and if sustained, could bring higher sales prices.

 ”Contingent” means that a contract of sale has requirements that must be satisfied before the agreement can proceed to closing.  The most common contingencies are a buyer’s satisfactory inspection and that the buyer  must qualify for a loan. 

“Pended” means that there are no contingencies to the contract of sale or that they have been satisfied and the property will proceed to close.  Many agents label “contingent” homes as “pended” but for our purposes, it doesn’t matter.

 To get the bargain home that you want in any price range, or devise a winning strategy to sell a house that you already own, please call me , the Hilton Head Gated Communities Specialist today.  

The Multiple Listing Service of Hilton Head Island that requires 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.”

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

The Only Foreclosure Lot In Indigo Run Today

The entrance to Berwick Green	The subject lot is a foreclosure @ $99,900.

Indigo Run is a Jack Nicklaus gated golf community on Hilton Head Island with two 18-hole championship golf courses and Berwick Green is single street enclave within Indigo Run is walking distance to both the Golf Club and the Golden Bear club houses; Berwick Green also has its own neighborhood swimming pool.  

Lot 48 Berwick Green is a .35 acre pie-shaped lot with a wooded and partial golf view located at the end of Berwick Green Drive that has no through traffic, on the cul de sac immediately next to the Berwick Green neighborhood swimming pool.  Behind lot #48 is a ‘green belt’ of community-owned land.

The Berwick Green community pool	Leaving Berwick Green on Berwick Drive

Foreclosure lot #48 listed with Go Gated Realty for $99,900, formerly listed  for $135,000 with another agency before it went into foreclosure.   The lowest price lot for sale in Indigo Run was $129,000 and the price on it has now been lowered to $99,000 – determined to be the low price.   One foreclosure can make a difference; in this case an asking price of 36% less for foreclosure lot #48 and 30% less for the other lot. *

These two lots are the only lots for sale in Indigo Run today for less than $100,000 and after one other lot for sale at $139,000, there are 29 other lots for sale in Indigo Run today with prices from $159,000 to $999,000 for an average asking price of $316,000.  Two lots sold in Indigo Run in the last 90 days for $200,000 and $250,000.   There are very few lots for sale for less than $150,000 for on Hilton Head Island today.  By several measures, foreclosure lot #48 Berwick Green is a real bargain.

Build Your Custom, Luxury Home in Indigo Run

Meet the neighbors.  This home has 3,381 sf and is for sale for $799,000.	Immediately next to foreclosure lot #48, this home has 3,111 sf and is for sale today for $639,500.

Two homes are listed for sale today in Berwick Green, at $639,5000 and $799,000.   One of these homes is immediately next door to the Indigo Run foreclosure lot #48 and the other house is a few doors away.   If you would like to build a home like either of these that have 3,111 square feet and 3,381 square feet of living space, you could save about $64,000-$180,000 respectively and have a brand new home built to your specifications, with the latest building materials and appliances.   I am a former licensed South Carolina Home Builder and I will be happy to walk you through the building process and connect you with excellent builders who build at low prices.

But what if you cannot buy a home now because you have to sell the one that you have first?  It may be that you cannot afford to have two homes at one time but perhaps you can afford to buy a lot and build later when you sell the house that you must sell first.   A low-priced lot like Indigo Run foreclosure lot #48 makes this very attractive, locking in your savings forever.

To see and compare the foreclosure lot #48 in Berwick Green, Indigo Run, please call on my cell phone at 843-684-2933 or email rich@rkrealty.com. 

*These numbers were taken from the Multiple Listing Service of Hilton Head Island that requires 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.”

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

 Save Big Money When You Build Your Hilton Head Custom Home

Buy a resale home listed for $799,000 like this one in Indigo Run with 3,381 sf.	Or buy this Indigo Run foreclosure lot for $99,000 and build a custom home @ $155/sf and save $175,000.

Everyone knows that  low priced Hilton Head homes and villas are outstanding values now, but even greater savings are possible when you buy a low-priced building lot and build your custom, luxury home.  It’s an option that you may want to consider, especially if you want a new house, designed and built to your own specification with new appliances and the latest building materials.  

You may not be able to buy a home now on Hilton Head but you may be able to afford to buy a lot, locking in some good savings when you build at a later time.  And, lots have traditionally been very good investments based on their high demand and diminishing supply.  

You Can Save $50,000 And More When You Build

• The prices of many Hilton Head building lots have fallen drastically in the last two years.  Among the low-priced lots are foreclosures, short sales and lots that just must be sold.
• The same things that have inhibited more sales of real estate have brought the slow sales of lots.  These include the economy generally and the low demand for building.
• Low demand for building means that Hilton Head home builders are eager for work and their prices are much lower than they used to be.  Quotes of $225/sf are not commonly seen as $180/sf and some builders will build at about $150/sf. 

Big savings are not a sure thing when you build a house but it can be an attractive option that can save you some big money but you have to know about the possibility.  Of course, some people (like me) would prefer to design and build a new house and get exactly what you want.  Today, despite the low prices of many Hilton Head homes, including foreclosures, you can save $50,000 or more when you build rather than buy a resale home.   

Lot Prices and Sales Decline From March 2007 to March 2009

Let’s take a quick look at the downward trend in Hilton Head lot prices.  The chart below compares the numbers from March of 2009 and compares them to March of 2008 and March of 2007.  The numbers in the chart were taken from Hilton Head Multiple Listing Service statistics* and they show a substantial decline in home site prices by half in just the last two years and a decline in the the number of lots that have sold by 75%! 

These numbers are just averages; while the average price of $163,000 is very good compared to previous years when similar lots were selling for $350,000 and more, we want a bargain, a lot that costs less than the average of $163,000 and even as low as $17,500!   We want some pay dirt!

Some Hilton Head gated communities with building lots for sale for less than $150,000

• Belfair with 39 lots for sale for less than $150,000 and with lots from $17,600.
• Berkeley Hall with 19 lots for sale and with lots from $19,500.
• Colleton River with 37 lots for sale for less than $150,000, with lots from $30,000.
• Folly Field with 2 ocean-oriented lots for sale for less than $150,000..
• Hampton Hall with  58 lots (!) for less than $150,000, with lots from $29,900.
• Hampton Lake with 9 lots for less than $150,000, with lots from 98,000.
• Hilton Head Plantation with 2 lots for ale for less than $150,000.
• Indigo Run with 3 lots for sale for less than $150,000 with lots from $99,000.
• Palmetto Hall with 3 lots for sale for less than $150,000.

As I said before, having options is good and you want to work with a real estate agent who can help you to compare communities, resale homes within these gated communities and others and compare building lots,  building costs and builders if the alternative is right for you. 

Savings Can Begin With A Low-Priced Building Lot

Here are some possible savings when building instead of buying a resale home:

• A home in Belfair with 2,861 sf for sale today @ $569,000 lot can be built @ $155/sf = $443,500, plus $17,500 for the lot = $461,000.  Let’s assume that the house can be bought for $550,000; the savings would be $89,000, or 16% less.  
• A home for sale in Indigo Run with 3,111 sf is listed for $639,500 right next to a foreclosure lot that was just listed with Go Gated Realty for $99,900.  Assume that the house can be bought for $625,000, consider building a new house instead with 3,111 sf on the lot next door @ $155/sf = $482,200, plus $95,000 for the lot for a total of $577,200 and a savings of about $62,300, or 10% less.
• A home in Hampton Hall is for sale @ $579,000 with 4,200 sf.  Even at $150/sf, the cost to build would be $630,000 and then you have to buy a lot, so in a case like this, buy – don’t build.  You achieve a substantial savings when you buy resale on this home.

Go Gated Realty is the Hilton Head Gated Communities Specialist®

For anyone who is interested in getting the best deal for a custom home in one of Hilton Head’s outstanding gated communities, please call me at the contact information below or on my cell number, 843-684-2933.  I am a former licensed South Carolina Home Builder who loves to compare homes, lots and communities.  We will find the home that you want or build one, even if it will be built in the future and save you money!

*This disclaimer is required by the Multiple Listing Service of Hilton Head Island:  “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.”

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

Hilton Head Home Prices Search for the Bottom

Sep 07 Oct   Nov   Dec  Jan 08  Feb   Mar   Apr     May   Jun    Jul    Aug   Sep

600     611    507    601    576   399   569    501   520    537   452    513   536

 Hilton Head Home Sales Prices x $1,000.

We don’t need the Go Gated Blog to tell us that Hilton Head home prices have fallen.  Statistically, home prices have fallen from September 2007 to September 2008 by 10.8%.  But, are prices at the bottom and if not, when will this happen?  The fact is that  nobody knows exactly when prices will bottom and economic events like that are impossible to predict accurately.  But, we can study our local housing numbers as we do in this blog and draw our own conclusions about what may happen next.  

The best statistics about Hilton Head home sales for us to study come from the Hilton Head Multiple Listing Service and come with this disclaimer:  “The statistical data presented herein has not been verified by the Multiple Listing Service of Hilton Head Island Inc, Richard Kadesch or Go Gated Realty.   The publication of the information hereof is not a representaiton of any fact whatsoever.”  

The Number of Hilton Head Homes Sold

Sep 07 Oct   Nov   Dec  Jan 08  Feb   Mar   Apr     May   Jun    Jul    Aug   Sep

169      90     87    143   66     113   107   140     156   129   148    106    83

A Summary of Hilton Head Home Sales Data

Here is a summary of some 13-month statistics taken from the HIlton Head MLS: 

• The average sales prices of homes shows a gradual decline in the past 13 months (see the graph, above).  The average home sale in September 2007 was $600,496 vs the average home sold in September, 2008 of $535,719 shows a decline in average sales price of $64,777 or 10.8% year to year for September.  We will probably see some lower average sales prices in 2009 and we will have to monitor the data to see when we hit bottom. 
• The number of homes sold shows a gradual decline (see the graph, above).  169 homes sold in September 2007 vs 83 sold in September 2008. This is a decline of 50.9% for these  two months year to year.  Okay, so there are fewer buyers but to speculate about why is to ask if prices are still too high, credit is too tight and if buyers are waiting for the presidential election or some other event as a buying signal.  
• The dollar volume of Hilton Head homes sold declined from $101,483,835. in September 2007 to $44,464,691. in September 2008 ( see the graph, below). This is a decline of 56.2%.  This number, together with the number of homes sold data tells me that more homes are selling in the lower price range, at least in September, 2008.    
• The average days on the Market to sell is up from 125 in September 2007 to 149 in September 2008 (see the graph, below).  This is an increase of 24 days, or 19.2%.

 Hilton Head Home Sales in Millions of Dollars

Sep 07 Oct   Nov   Dec  Jan 08  Feb   Mar   Apr     May   Jun    Jul    Aug   Sep

101    55      44      86      38     45      61    70     81      69      67      54      44

 What Must Change For Prices to Recover

• The supply and factors must change.  Demand must increase more than the supply increases.  The supply must decrease.  We see this happening and many sellers do not renew listings and withdraw properties from the market.  In September of 2007 there were 2,904 Hilton Head homes for sale vs 2,842 homes for sale in September, 2008 – a reduction of 2%.  
• The rate of foreclosures must diminish.  While foreclosures are a small part of the sales inventory, they depress prices at the low end..
• Credit must be available for buyers and at attractive interest rates.   The government is not committed to this issue.
• Buyer confidence must improve.  Many buyers are waiting for the market to settle down and to me, this means that they expect to get lower prices by waiting or they must sell before buying.  Buyers also don’t like uncertainty in general and there is a lot of that right now.  We need to have the Presidential election to eliminate the uncertainly about who will be our next President.  We need more assurance that the national and world economy will improve. 

The Go Gated Blog will be monitor events and HIlton Head home prices.  The needed changes will happen slowly.  National experts see a housing recovery underway but that will take several years to complete.  Hilton Head is typically among the last places to feel a recession and among the first to recover.  This is in part because there are many affluent buyers of prime Hilton Head Island real estate.  It is also true that Beaufort County is among the fastest growing counties in the State of South Carolina.  There are many new jobs here and baby boomer demographics favor the Hilton Head retirement and second home housing market.  

 Some Good News for Hilton Head Home Sellers

• The gradual decline in prices gives sellers a reasonable expectation of what buyers will pay.     
• There are buyers in the marketplace. 
• We are probably at or near the bottom of home prices.
• Banks do have money to lend and interest rates are generally pretty good. 
• If you sell low now and will buy again, you will probably buy low too. 

Average Days on the Market to Sell

Sep 07 Oct   Nov   Dec  Jan 08  Feb   Mar   Apr     May   Jun    Jul    Aug   Sep

125   128    101    146   130    139   145    162    151   118   149   147   149

 What is a Hilton Head Home – Statistically?

All sales from the entire HIlton Head MLS area is used for the data in this article.  Yes, the Hilton Head statistial home is a combination of some trailers down the road, a few ocean front mansions and numerous other homes.  Please ask the Gated Communities Specialist ® about the sub-market of the neighborhood that interests you.  Recently a client who bought a house from me last year in Hilton Head Plantation called to find out how much he believed home prices must have fallen in his neighborhood.  The numbers told me that prices where he lives have not fallen at all.  He loves his home and has no regrets.  He could not have bought it now for the low price that he got even if it was for sale today.   

Remember, this data describes homes - not villas or lots.  That data will be presented in separate blog posts ASAP.  Most sales of the Hilton Head Multiple Listing Service occur on Hilton Head Island or in Bluffton, South Carolina.   Other areas that are part of the Hilton Head MLS include Ridgeland and Hardeeville, both in Jasper County.  Also included are homes in Barnwell, Hampton, and Orangeburg counties.

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

Foreclosures can mean low purchase prices and good profits on resales.  That’s something to get excited about!  There are some Hilton Head foreclosures right now but how do you find them?   There are foreclosure services that charge a fee to display foreclosures in your area of interest (not necessarily an up to date list) and also provide the e-mail addresses of the agents who have the foreclosures.  This can be helpful but it is not necessary.  It is definitely not the best way to buy real estate.  In my opinion, the best way to buy real estate, including foreclosures, preforeclosures and distressed  properties is to search the Hilton Head Multiple Listing Service for the property you want and work with a Buyer’s Agent.  All of these properties and more are listed with the Hilton Head Multiple Listing Service.  You can search all available MLS listings at any time or you can ask your Agent to do it for you.  True, the MLS does not categorize listings as  foreclosures, preforeclosures or distressed, but this information is given in every listing.       

I have owned Hilton Head foreclosures that have been great deals but I can assure you that that just because a property is a foreclosure, it is not automatically your best buy.  Price is important but so are location, quality and use.  I’ll come back to this, but first let’s define the kinds of properties that can be bargains:         

• Distressed properties have owners who must sell for a variety of reasons.  This does not mean that the property itself is ‘run down’ but it could be.  The properties are listed in the Hilton Head Multiple Listing Service and priced as low as possible for a quick sale.        
• Preforeclosures have owners who have missed some bank payments.  Many owners who bought at the ‘top’ and saw their adjustable payments increase also saw market prices fall.  It’s a real problem when an owner cannot afford their payments but cannot take a loss.  Preforeclosures are an urgent selling situation and they are always listed with the Hilton Head Multiple Listing Service at the lowest  possible price to optimize a fast sale.  The sale of a preforeclosure is often be accompanied by a negotiation with the lender to restructure or forgive the seller’s debt that exceeds the purchase price and closing costs. 
• Foreclosures are properties owned by banks after they have have bought them on the courthouse steps.  This is because the owner defaulted on their loan and the bank has bought the property to protect their investment.  Banks list their properties (called REOs for real estate owned) with agents of the Hilton Head Multiple Listing Service.  A foreclosure is typically listed among the lowest prices on the market but not always.  It depends on the mortgage balance the the willingness of the bank to take a loss.  
• Properties with eager sellers are worth noting even though they may not be distressed at all but some sellers can beat the market if they want and still make a good profit.   I have been to auctions where some of the properties sold for more than listed properties with the MLS.  Had the buyers checked out the listings they could have bought for less and with better terms.   

Here are some reasons why foreclosures and distressed properties may not be your best deal: 

1) Foreclosures and distressed properties don’t always have the lowest prices.  The price is dependent on the sellers ability and willingness to take a loss and this includes banks.  When a bank tries to recover a high mortgage balance, attorney fees and other closing costs, whey may not offer the lowest price on the market.   

2)  The location of the property may not be the best for your intended use.  Compare the location of similar properties to see if what you really want is worth the premium.     

3) The condition of the property may be a problem.  The owners of distressed properties often don’t have the money to maintain or improve their properties.  Even when they sell their properties, they may not be able to pay for needed repairs as part of the sale.  Foreclosures are always sold ‘as is’.  This means that you must purchase with the right of inspection and even then, you will be paying cash for the repairs unless your lender will finance them with the purchase.

4) Other concessions you want may be refused.  In a standard purchase, many concessions are negotiable.  With foreclosures and distressed properties, a buyer may be refused concessions that include repairs but also they can include improvements, closing costs, assessments, regime fees and taxes as negotiated and allowed by the lender.  

5) Taxes go with the property so you want to make sure that they are paid at closing and that you are not buying a property and also a tax debt or some other lien that must be satisfied on sale.   

For any property you  want, you are wise to have an experienced Buyer’s Agent represent you.  Keep in mind that the listing agent of foreclosures and distressed properties represents the seller, just like with any other property.  You will benefit from an experienced agent’s opinion about the suitability of the property for your needs.  Your agent can compare the subject property to similar properties on the market and others that have sold.  Good agents earn their commissions with their skills and knowledge that save your time and money.  They are paid at closing by a commission that is already in the price of every listed property.  All things considered, it’s a no-brainer to have a good Buyer’s Agent working for you.       

To search and purchase any Island property, please call on me.  Remember, foreclosures are not the only good deals out there.  Nobody should overpay but sometimes quality and location are worth a premium.  This is a great time for a buyer to be in the Hilton Head real estate market.  Foreclosures and distressed properties are among today’s opportunities.         

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