Charleston SC Metro Real Estate: May 2008

All buyers have one thing in common - they all want to get the best deal possible, especially in this market!  Many are turning to foreclosures and short sales in hopes of getting that great deal!  If one is equipped with time, energy, and patience, the short sale option might be right for you.  But beware, there are many pitfalls when going this route. 

Short Sales:  A short sale is not quite a foreclosure and not quite a regular sale.  It is the step that many home owners utilze before the bank puts the home in foreclosure.  A short sale is when the lender will accept less than the full amount due on a mortgage.  The biggest problem with short sales is that the contract to purchase the home is contingent upon 3rd party bank approval.  That means that the wonderful price that you think that you have gotten for the house, may not meet the banks expectation of what they are willing to take for the house. 

Quite often, the short sale price that is advertised is considerably less than what the seller owes to the bank.  For example the seller may owe 200K on the house but advertises it for sale at 175K.  Sounds like a great deal right....except now the bank has to be convinced that they should take 25K less than what is still owed to them.  Most short sale contracts will stipulate that once the contract is ratified by the seller and buyer, the bank has upwards of 60 days (depending on the bank policy) to give you thier decision.  Best case scenerio is after the banks alloted timeframe it will accept the offer and you get to close on a great deal on a house.  The most common scenerio is that the bank will take the entire time alloted and then decide that they will not accept the price for the house.  You then have the choice of paying the full price owed to the bank or moving on to another house.  Note:  the bank takes its time replying intentionally because they want to wait for other offers. 

Why would someone use the short sale process you might ask?  It most often occurs in declining markets!  I see it mostly in new construction neighborhoods.  The price that was paid for a given house 2 or 3 years ago is considerably more than what the builder is offering to build the same house now.  The seller has to sell because he/she needs to relocate.  Thus the seller must reduce his/her price to be competitive.  This is only one of many scenerios for short sales.

Banks are not interested in being in the real estate business, other than offering a loan for the purchase therein!  They tend to leave the process of buying and selling to the Realtor professionals.  With that in mind it is also not in their best interest to loose money.  Quite often, banks would rather the property fall into foreclosure, pay a few thousand dollars to get the property up to where it should be, and recoup the money they would have lost by allowing a short sale.  There are real estate professionals that base their entire business plan upon working with banks to do just that.

For more information about short sales, contact Michael Johnson at 843-817-5299 or visit my website at www.providingthelight.com 

Today I went to a growth forum for the north area of the Charleston Metro.  The panel consisted of Jim Hill (MeadWestvaco), Larry Hargett (Dorchester County Council), Michael Heietzler (Mayor of Goose Creek), and Rick Vale (Daniel Island Development).  Each got an opportunity to speak and answer questions.  The following is a summary of their presentations that indicate the direction of growth in the Charleston Metro over the next 10-20 years.

Jim Hill - MeadWestvaco

• company owns over 400K acres of land is SC (it was 2.5 million acres in 2001)
• they have sold a lot of land since 2001 because improvements in technology have decreased the need for large amounts of forested land and it has become impractical to manage large amounts of forested land.  The sale of this land has lead to increase commercial and residential development.

Larry Hargett - Dorchester County Council

• Dorchester County is the fastest growing county in SC
• Summerville has a population of 40K
• Dorchester County is about 42 miles long and it is expected to grow north and west in population around St. George and Harlyville.
• Dorchester  county has had problems in the past with poor planning with regards to infrastructure but county has made legislative steps to remedy that to include the 1 cent sales tax for roads. 
  
• Dorchester County's biggest draw is the school system.

Michael Heitzler - Goose Creek Mayor

• Goose Creek is a vastly diverse population with 42 ethnic groups
• The demographics of age were shifting up and also shift from blue collar to white collar.
• Population of Goose Creek in 2000 was nearly 30K; it is expected to increase dramatically in the next 10 to 20 years.
• Current major developments in Goose Creek include Liberty Hall Plantation, Longleaf, Brickhope Gardens, and Canes Crossroads.
• Expected to spend 15 millon dollars over the next 10 years to develop downtown and beautify it while preserving the history.

Rick Vale (Daniel Island Development)

• Daniel Island Development is overseeing the development of Carnes Crossroads (to be located near the intersection of HWY 17A and HWY 176.
• Carnes will be referenced for resedential and Carnes Crossroads will be referenced for Commercial.
• The development will consist of about 2000 acres.
• They plan to start building in early fall 2008 and the first homeowners are expected to move in the spring of 2009.  Price points will start at mid 200K 
• 15000 people will make up the community of Carnes.
• There will be 300 acres of lakes, much of which will be recreational; there will also be biking and walking trails.
• Carnes Crossroads will have a marketplace with specialty shops and restaurants.
• Roper/St Francis Hospital has purchased 66 acres in the area and will be the only Hospital in Berkeley County within the Charleston Metro.

The city of Goose Creek SC is conveniently located about 20 minutes from downtown Charleston  and about 30 minutes from the major beaches.  The city has over 30,000 residents.  Most residents call it home because of its beauty and small town feel as well as the standing rule in Charleston area real estate:  "The further you get from downtown and the beaches, the more you will get for your money."  Another attractive feature that residents benefit from is the fact that most of Goose Creek is not in a flood zone and thus rarely experiences floods, unlike its neighboring towns and sea islands closer to the beach.   Below are this year's housing statistics for Goose Creek South Carolina.

If you have any questions about real estate in Goose Creek or if you would like to see a home here or anywhere in the Charleston Metro, please contact Michael Johnson at Carolina One Real Estate:  843-817-5299 or visit www.providingthelight.com