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Daily Real Estate News | December 28, 2009 

Misuse of Home Buyer Tax Credit Reported

A report earlier this month from the Treasury Inspector General for Tax Administration estimates that 73,799 taxpayers have incorrectly claimed the first-time home buyer tax credit. The report concludes: "The IRS is unable to verify eligibility for the majority of Recovery Act benefits at the time a tax return is processed."

The IRS didn't dispute the claim, but said it was studying the matter further. Some have suggested that this report and others will encourage Congress to put some safeguards in place before more claims result from the extension and expansion of the tax credit.

Source: The New Yo...

Although most analysts are crowing about the increase in sales and the early signals that the real estate market is turning around, there are a few items that may complicate matters and/or destabilize the market down the road (i.e. during the spring buying season):

• The Federal Reserve is expected to wind up a $1.25 trillion buyback program that has kept mortgage rates low. This "lack of demand" for mortgage-backed securities may trigger steep increases in mortgage interest rates.
• The FHA (Federal Housing Administration) has tightened underwriting standards and plans to further tighten these standards at the end of the first quarter. This could reduce demand by making it more difficult...

How to Get an Easy Mortgage Loan...

Many clients ask me the same question: How can I get better prepared to go smoothly through the loan approval process with a lender?

Great question! And one that merits consideration, given than an increasing percentage of real estate transactions are falling through because of financing problems (mostly at underwriting stage).

So, how can you get better prepared to avoid nasty suprises and unsavory delays?

Get Organized - lenders usually ask for the same documents that you will have to show over and over, update and verify:

• Last two years' federal tax returns. Include detail forms in addition to the 1040 if you are self-employed.
• If you are a s...

If You Don't Buy a House Now, You're Stupid or Broke

This is the title of this interesting article written by Marc Roth in Businessweek.The author explores the historic low in interest rates and predicts that those who wait to buy, may have to pay a much higher price in the end, given the trends in mortgage interest rates. Read the full article here...

IRS Sets New Rules for Tax Credit

The Daily Real Estate News reported that the Internal Revenue Service (IRS) has published new guidelines for eligibility for the home buyer credit when there are co-borrowers purchasing the home.

When a parent of an adult child co-signs for the mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount. The parent does not qualify for claiming the tax credit, however, if the child has not owned a home in the last three years and qualifies based on income, he or she can claim the whole $8,000 credit.

When an unmarried couple co-purchases a home and only one of them is el...

I read this article on Inman News today about how lender-owned properties (REOs) and short sales are not always the bargain that buyers set out to get, and many times no the ideal way to acquire well-priced properties. I agree with the author wholeheartedly!

Read the whole article:

"REOs, short sales aren't always bargains" by Bernice Ross

Top 10 Reasons Some People May Not Like Charleston, SC

1. It's a Small Town - let's face it! With a population close to 600,000, Charleston is not a large metropolis and cannot offer NFL franchises or major league baseball teams, big rock concerts or high profile international visitors like a large metropolis does. Charleston still feels provincial, although you can find people from all over the world. In comparison to cities like New York, Paris or London, Charleston's cultural, ideological and ethnic diversity is still limited. IMHO, Charleston was probably the "forgotten jewel" along the East Coast that only hit the international "radar screen" after the Internet became ubiquitous. Th...

Top 10 Reasons Many People Love Charleston

After working with dozens of out-of-town clients who have relocated to Charleston from different parts of the U.S. and overseas, areI wanted to share some of the pro's and con's that I have heard from them about Charleston. Charleston (deservedly so) has been consistently named one of the top 10 small cities to live and visit in the USA. Today I will write about the things people rave about, tomorrow I will share some of the not-so-good aspects of this "Holy City"...

1. The Weather is (mostly) Great!  In the Winter, when most of the country is under snow, ice and sleet, Charleston's mild climate allows for year-round golf and tennis, while stil...

LONELY PLANET, the travel book company, recently released their 5th Edition of "Best in Travel 2010", a collection of countries, regions and cities they recommend as destinations that offer memorable and inspiring experiences. Charleston, SC was the ONLY American city to make this elite list!

Here are Lonely Planet's top choices:

Countries: El Salvador, Germany, Greece, Malaysia, Morocco, Nepal, New Zealand, Portugal, Suriname, United States.

Regions: Alsace, France; Bali, Indonesia; Fernando de Noronha, Brazil; Goa, India; Koh Kong Conservation Corridor, Cambodia; Lake Baikal, Russia; Oaxaca, Mexico; Southern Africa; The Lake District, England; Southwest Western Australia.

Cities: ...

Charleston Magazine is sponsoring this "before-and-after" remodeling contest. Have you remodeled your home? Maybe you can win it and be featured in this magazine!

The Charleston Area real estate market has experienced an important change in sales momentum. Fueled by low mortgage interest rates, improved housing affordability (lower home prices), the $8,000 Tax Credit for first-time home buyers and the prospect of increased employment with the future Boeing plant being built near the Charleston International Airport, year-over-year monthly sales (i.e. October 2009/October 2008) have shown increases for the past four months, for the first time since October of 2006!

As this chart shows, this "turn" in the market trend signals positive things to come for our real estate market. Higher monthly sales = accelerated inventory reduction = shorter time to ...

486 Mt. Royall, Longpoint Plantation, Mount Pleasant

This 3-bedroom, 2.5 bathroom home has been totally renovated! Kitchen with granite countertops, ceramic tile floor and stainless steel appliances; granite bathroom countertops; new roof shingles; new window.

Looking for a nice home in a great subdivision in Mount Pleasant? At $137 per square foot, this one is great value!

Comparing Residential Real Estate Investments Across Markets

New Investment Assessment Tool Rolling Out

I just read about this new company, SMARTZIP.com, who is now in beta testing but intends to go national next year.  They have come up with a system to rate residential property investments across different markets, just like any investor would rate a stock, bond or mutual fund.

I think this is a great tool! We'll be able to see each property's investment ranking for future capital appreciation, as well as for cash flow. For residential property investors, they will be able to compare an investment in Charleston, SC, with an investment in Wilmington, NC.

A word of caution: Nothing su...

James Island's 20th FESTIVAL OF LIGHTS opens this Friday on the James Island County Park. From November 13th to January 3rd, this Holiday Event is a tradition in the Lowcountry and provide a fun activity for all the family.

You can get a sneak preview tonight during the 2-mile fun run and walk from 6:30 to 8:30 pm. Entry fee is $10 per car with up to 15 guests. 8-foot holiday cards that were designed by local students will be on display. There all sorts of fun ancillary activities for kids and families such as the carousel, Santa's Village, gift and sweet shops, roast marshmallows and pictures with Santa. Don't miss it this year!

Latin American Business Expo presented by the Charleston Metro Chamber of Commerce

According to a recent report from the Immigration Policy Center, businesses owned by Latinos and Asians in the state of South Carolina had combined revenues of $2.8 billion and provided over 20,000 jobs throughout the state in 2008. The Center also reported that Latinos and Asians living in South Carolina had a combined purchasing power of $5.2 billion.

In 2007, immigrants make up 5.4% of the workforce in South Carolina. With this in mind, the Latin American Business Council (LABC) will host a Seminar and Expo on Thursday, December 10, that will educate attendees on the economic impact that Latin Americans ...

President Obama signed today into law the extension of the $8,000 Tax Credit for first-time homebuyers. To qualify, buyers must contract the sale by April 30th, and close by June 30th, 2010.

In addition, the law expanded the credit to provide a $6,500 Tax Credit for buyers who have owned a primary home for over five years and who want to buy a new home.

This official document shows the differences between the existing and the new Tax Credit laws.

How To Handle Multiple Offers?

And why on earth am I talking about this in a "buyers' market"?

Well, as it turns out, it is not so much a "buyers' market" in certain segments of our local real estate market. Specifically the lower priced home and short sale home segments in each area have seen a lot of activity in the last six months, the former due to the First Time Homebuyer Tax Credit, the latter to the incredible deals that short sale prices seem to offer. The availability of these kind of homes in good shape has dwindled accordingly. And with this reduction in inventory come (you guessed it!) multiple offers, as buyers compete for the few good homes available in their price range.....

Ten Affordable Home Upgrades

Since the market turned around in the last three years, buyers have become pickier and pickier. Today's "buyer's market" implies that we are in a de facto "beauty contest" combined with a price war.

Some homeowners believe they have to upgrade everything in their home before it can attract a buyer. While fixing all deferred maintenance issues is essential to achieve the maximum "market price" for your home, you don't necessarily need to spend tens of thousands of dollars in upgrades to get a buyer. Realtor Magazine published today a list of 10 affordable upgrades that you may consider:

1. Make rooms gender neutral. If any of your rooms have a definite skew ...

Belle Hall Plantation is one of the best known planned neighborhoods in Mt. Pleasant. Its convenient location, diversity of price ranges, community amenities and neighborly spirit make Belle Hall one of the favorite destinations for those who want to live in Mount Pleasant.This 3-bedroom, 2-bathroom ranch style home is listed at $245,000! I don't think it will last! Call me to schedule a showing today...

225 Mossy Oak Way - Click here for details...

Ready for the Oyster Roast Season?

Fall weather brings another delight of the Lowcountry: Oyster roasts! From early October until late April we'll experience frequent events, fundraisers and parties featuring plump, steamed oysters. Get your shucking knives ready!

Some of the well known oyster roast events in the area include:

- The Historic Charleston Foundation Oyster Roast (April 2)

- Lowcountry Oyster Festival at Boone Hall Plantation in Mt Pleasant (January 31st)

- Wagener Terrace Neighborhood Association Oyster Roast (November 1st)

- Friends of the Hunley Oyster Roast and Silent Auction (TONIGHT, Friday, Oct. 23!)

- Charleston Junior Woman's Club Pink Roast (this SUNDAY, Oct...