The Gaillard Group

Just Get It Over With!

2011-05-12T08:16:00.000-07:00

Our great state of South Carolina just "stayed" the foreclosure process in the state. http://www.heraldonline.com/2011/05/03/3037103/sc-chief-justice-again-halts-states.html In the infinite wisdom of our elected officials, they have decided that homeowners in distress have not been given enough time to go through the myriad of opportunities available to them for "working out" their mortgage woes. While this is all in good, I have to admit, I just want things to get back to normal. Am I wrong to say that?

There are two camps we are dealing with here in our market - both are categorized as distressed. There is the group that have left their home because they have either a) been told by the bank to get out in preparation of the inevitable, or b) knew the inevitable would happen and found a secure place to live. Either way, the home sits vacant pending something happening. It most likely is listed for sale with a short sale contingency. It more than likely has not been professionally cleaned, landscaped or in away approached by a human touch in over 3 months. It sits like an open wound with all the other homes on the same street, in the same neighborhood, festering the same inevitable result. It is neglected and unprotected - in limbo land - while the state decides lets give these people more time to try to work it out.

Then there is the other group who, facing the same result, remains in the home, maintains their home and is truly doing everything they can to save their home. They want to stay in their home. Sure, they both lost their jobs and are living on a part-time income because the job market is in the double digits and its tough to find a job while the job they had with the same company for over 10 years had to cut-back their workforce. While the sincere desire is there, and it breaks my heart to say it, the numbers still don't add up. Is the bank to forgive a years worth of payments, or more? Is the bank the bad guy here when the home owner has the sincerest desire to make their payments but they just can't? It's a tough situation, truly it is. However, is giving the home owner more time really going to avoid the inevitable?

I hate saying it. I really do. But, I'm the kind of gal that rips the band-aide off rather than soaking it in baby oil and gently tugging it off. Quick is not always pain free - its just quick. Slow is not without its downfalls. Its excruciating! The anticipation, the stress, the heartache can be even more devastating. I truly believe it would be better to just get the inevitable over with - just foreclose or turn in that deed in lieu. The sooner we get this sick and festering inventory off the market the sooner America as a whole can recover.

Now I'm not saying a person should not have their due process. By all means, each and every homeowner in distress should, of course, have the time available to them to seek out and apply for each and every opportunity for them to try to salvage and save their home. I'm just saying if the writing is on the wall - read it with clear vision. And I know, the banks are as much at fault here too by not accepting the homeowners who have read the writing on the wall and offered a deed in lieu. Likewise, the short sale inventory is hefty and it takes time to gain interest in a short sale. If a homeowner has listed their home, there should be time allowed to attempt to sell it.

Call me impatient. I miss my neighborhood with 1 or two signs on the streets. I miss the days of manicured lawns and well cared for homes. I miss seeing homes that are loved. If its going to head to foreclosure, just foreclose it and lets get it sold and move on.

In my humble opinion,

Deanna Kastner, REALTOR, CNS

Specializing in REO & Short Sales; Founder of Fannie Stay program assisting distressed homeowners.

The Gaillard Group of ERA Tides Realty, 327 Folly Rd, Charleston SC 29412

843.300.1162 (O) 843.224.4531 (M) info@gaillardgroup.com

www.GaillardGroup.com

Professional REALTORS serving the entire Tri-County Area (Charleston, Berkeley & Dorchester Counties)

Hot Summer = Hot Deals?

2010-06-29T07:10:00.000-07:00

Traditionally, the summer months result in lazy days and a slow down in the real estate market. In today's market, a "slow down" defines the market as a whole and investors and professionals alike don't want to even think about even more of a slow down!

Good news?

This is probably the oddest real estate year ever. Well, at least the oddest I have seen since I have been in the business of real estate. And that oddity could prove to be a bonus to the real estate market as a whole.

Over the past few weeks there has been an influx of properties going under contract. Properties that have been on the market for over 100 days as well as those that have just hit the market are being picked up at a maddening pace. What's the rush? Upon a closer look of the Charleston, SC market, the houses going under contract are both bank owned as well as privately owned. One cannot conclude that the increase in activity is just the loosening of the bank owned property. Additionally, the list price/sale price percentage is well above 85%. Some properties are actually fetching 100% of their list price indicating the market and demand are finally reaching a meeting of the mind. An increase in price reductions also indicates a more realistic seller which in turn leads to contracted sales. However, all this we knew already. So, what really is happening?

As I see it:
- Banks are working with homeowners now creating a decline in foreclosures. The magistrate auctions are down to 3 pages instead of 6!
- Banks are developing more stringent lending requirements. No more buying a home without a job Mr. Joe Public.
- Banks REO pipeline is open flowing now. No more waiting 3-6 months to close on an REO property.
- Banks REO pricing is aggressive; in some cases pricing is below market in order to create a bidding war which in turn equates to a higher sales price for the bank.
- Average Seller, seeing their neighbors property going under contract, are listing and selling their properties at a more realistic price.
- Buyers are fiscally aware of what they are purchasing and the value of that purchase. Markets change and a low buy now is a tool for increased equity in the future.
- Consumers as a whole have more confidence in our economy and realize that real estate remains a viable source of investment for the future.

Do you see what I see? The predominate economic factors effecting the market are controlled by (can it be?) the "ones" that created this whole mess in the first place? *sigh*

It is true, the loosening of the REO market has increased sales. However, all indications point to a confident Buyer and Seller alike. With unemployment at an all time high, banks still digging out of their red tape horror and old long standing businesses closing their doors, it is hard to believe there is consumer confidence but, there it is. While investors are still fighting for their share of the market within the lending institutions it is the Buyers who are finding their way through the process. Sort of like a reorganization of the factors that drive the market. Real estate will always be at the beck and call of the Buyer. It would appear that now the Bank also is part of the key system that makes real estate flow. Such is the time we are in.

So whether you are a seller, buyer or an investor, look to your nearest REO to see what your property is worth and/or how much you should pay for one. The summer of 2010 will prove to be definitely a time for some hot deals and now is the time to strike while the fire is hot.

1484 Coopers Hawk Dr, Hanahan, SC | Powered by Postlets

2010-06-08T07:52:00.000-07:00

1484 Coopers Hawk Dr, Hanahan, SC | Powered by Postlets

118 Spring Street, Charleston, SC | Powered by Postlets

2010-06-08T07:51:00.000-07:00

118 Spring Street, Charleston, SC | Powered by Postlets

Buying Properties "On the Fringe"

2010-06-01T04:27:00.000-07:00

Successful Real Estate investing requires a keen sense of upward appreciating trends. Research is key to any investment property.

I have always advised NOT to purchase in brand new neighborhoods at the first phase level. Why? It is unproven ground. New neighborhoods popped up everywhere in the past few years and all it took was a real estate slowdown to catch those investors with a sparkling new home and no one to rent it much less buy it! Construction slow downs (and in some cases builders completely pulled out of communities) left the newly constructed neighborhoods vulnerable and bare. It will be years before these properties begin to realize the upward appreciation the initial investment should have incurred. Much longer than the 2-5 years most investors want to have their money encumbered.

Where is the next quick fix in today's real estate market? Where it always has been. On the fringes of urban areas; areas that still show a level of acceptable growth. Look for locations that have stabilizing businesses such as a finance district or colleges or markets that continue to grow. As the consumer tries to pinch pennies, fuel costs becomes a high consideration to purchasing a home. Urban home purchases are an answer to high fuel costs with the ability to walk or ride to work without having to pay for gas or parking. Investors need to know what the consumer is looking for. Researching the 2-5 year trend and what home buyers will be looking for in a future home purchase, today's market allows some great low hanging fruit to be harvested on the fringes.

On the fringe investing is not for the weak at heart! It requires vision and patience. It is very rare to purchase an on the fringe property without having to invest some rehabilitation money. This is where the deal gets even sweeter! Many urban areas have grants to enhance investment dollars as any rehab in the community helps the community prosper. Studies have shown that it takes just 2-3 rehab homes on any city block to not only increase values in the neighborhood as a whole, but also instills a sense of pride in the community which then lends to a decrease in crime. Studies further show that those initial 2-3 rehabs are the costliest in both materials as well as replacement materials due to theft. Rentals on the initial renovations will still be along the lower end however the initial investment can be close to $100K less than those afterwards. As the community begins to revitalize, the secondary rehabs are the sweetest fruits of all! Sure the initial investment may be a little higher, but the footprint has already been stamped and the rents obtained are higher as well as the confidence of the future home buyer.

On the fringe investing is an exciting investment tool that can bring about not only rewards to the investor's pocket, but more importantly, there are rewards in the community as well. Now that's a win-win investment plan.

The Gaillard Group

2010-05-19T14:09:00.000-07:00

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