Charleston SC Metro Real Estate: October 2009

Most people who are not involved in real estate day in and day out often get confused with the industry terminology that Realtors routinely use.  It can be a confusing barrage of lingo that frustrates buyers and sellers.  One of these terms is Earnest Money.

What is Earnest Money?  - Earnest money in real estate is "good faith money," or as I like to call it serious money.  This is the money that a buyer usually puts up to show the seller that he/she is serious about buying a house.  This is often necessary in the mind of the seller because buying a house usually takes about 30 days (depending on the situation) from the time the buyer and seller ratify a contract until the time of the closing.  The earnest money from the buyer is put is an escrow account and held by one of the involved real estate brokerages until the closing.  If all goes according to plan and the buyer buys the house from the seller, then the earnest money is credited to the buyer at closing.  But, in the event that the buyer backs out of the contract, without proper cause within the contract, the earnest money goes to the seller and the seller must then put the house/property back on the market in hopes of finding another buyer.

How Much Earnest Money? - It is important to note that in South Carolina there is no law requiring earnest money nor is there a law determining how much money should be put in escrow for any given price range.  But, most sellers will not consider an offer without the earnest money being part of the offer.  Why?  Because the seller is taking a risk.  You see once the seller accepts an offer on their home, the home is taken off of the "active" listings on the market. The seller usually secures a new place to live and begins the process of moving his/her household goods into another home or storage. The earnest money ensures that if the buyer backs out (apart from what is allowed in the contract) the seller is compensated for the risk of any potential buyers that were lost as well as their time and trouble involved.

So how much is required?  I know many places around the country have an unwritten rule of 3%-5%.  The only time you will see that around Charleston is with some new construction builders and with some bank owned properties.  In the Charleston SC market, anything under 125K usually calls for an earnest money deposit between $500-$1000 (unless otherwise specified from the seller).  Anything from 125K-250K usually calls for an earnest money deposit of $1000-$1500.  Anything from 250K-500K usually calls for earnest money between the amounts of $1500 and $2500.  Anything above that is usually specified by the seller.  Just like anything else in real estate, earnest money is usually negotiable.

The key thing to remember about earnest money is that is should be used to strenghthen  the offer of the buyer.  A solid offer, a preapproval letter, and a reasonable sum of earnest money can go a long way in convincing the seller to accept the offer of a buyer.

Do you like books?  I do!  That's why I love going to the annual Charleston County library book sale.  It is a great time to go through some used books and get a great deal on them.  Don't miss this year's event going on this weekend at the Gailliard Auditorium.  It is going on today Saturday, 10 Oct 2009, from 9am-7pm, and on Sunday, 11 Oct 09 from 10am-3pm.  Go check it out. 

Click here for more information

Goose Creek South Carolina, a suburb of Charleston SC, has a real estate market that continues to sell amidst the market decline.  The number of homes sold are not what they were a year ago but Goose Creek real estate remains steady nonetheless.  In September of 2009 50 homes sold in Goose Creek.  There are currently just over 400 homes on the market in Goose Creek.

The following is a graph of the top selling neighborhoods in Goose Creek in September.  Note that what is mostly selling in Brickhope Plantation and Brickhope Greens is new construction.

 

 

In the overall market of the Charleston SC Metro, Goose Creek ranked number five on the list of cities with the most homes sold in September as demonstrated in the graph below.

 

 

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Charleston SC - A City of Firsts

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ENERGY STAR is a joint program of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy that promotes energy-efficient products and practices. 

On October 3, 2008, President Bush signed into law the "Emergency Economic Stabilization Act of 2008."  The bill extended tax credits for energy efficient home improvements to include windows, doors, roofs, insulation, HVAC, and non-solar water heaters).  The residential tax credit is available for the aforementioned improvements made and placed in service in 2009 & 2010.  

According to the government website, tax credits are available at 30% of the cost up to $1500 for existing homes only (new construction does not qualify).  The website goes on to explain the rules:

Tax credits are now available for home improvements:

• must be "placed in service" from January 1, 2009 through December 31, 2010
• must be for taxpayer's principal residence, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, and small wind energy systems (where second homes qualify)
• $1,500 is the maximum total amount that can be claimed for all products placed in service in 2009 & 2010 for most home improvements, EXCEPT for geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems which are not subject to this cap, and are in effect through 2016
• must have a Manufacturer Certification Statement to qualify
• for record keeping, save your receipts and the Manufacturer Certification Statement
• improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) — use IRS Tax Form 5695 (2009 version) — it will be available late 2009 or early 2010
• If you are building a new home, you can qualify for the tax credit for geothermal heat pumps, photovoltaics, solar water heaters, small wind energy systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters. More.

 

Recent Blogs

Tanner Plantation

Real Estate in Charleston SC

Charleston SC - A City of Firsts

5 Things to Consider When Buying New Construction

Tanner Plantation is a newer subdivision located in Hanahan SC, just north of the Goose Creek reservoir. 

Tanner Plantation includes the subsections of Tanner Hall, Mossy Creek, The Gardens, Amberglen, Sweetgrass, Ibis Glade. Eagle Bluff, The Commons, South Cove, and Edgewood Trace.

View Tanner Plantation in a larger map

The following is a numerical breakdown of homes sold and currently on the market per subsection with additional information on each:

Tanner Hall - Tanner Hall is the priciest of the homes and all the homes are custom built.  Three homes have sold thus far this year and seven are currently on the market with prices ranging from 486K to nearly 1.5 million dollars.

 

 

Mossy Creek - This subsection currently only has two homes built in it, one of which is for sale.  The lots are being sold separately with the expectatation of a custom built home being place on the lot. 

 

 

 

 

The Gardens - The Gardens has sold 4 homes this year thus far.  Current home prices range from 167K to 210K.  Most of the homes for sale are new construction built by KB Homes.

 

 

 

 

 

Amberglen - Amberglen has sold only one home this year and currently has three on the market with prices ranging from 229K to 255K.

 

 

 

 

 

 

Sweetgrass - Sweetgrass sold 10 thus far in 2009.  There are currently six homes on the market with prices ranging from 170K-229K.

 

 

 

 

Ibis Glade - Ibis Glade has been selling like hotcakes this year and is probably one of the most popular neighborhoods in the subdivision.  To date this year, 21 homes have been sold and seven are currently on the market with prices ranging from 167K - 268K.  There are both brand new homes still being built by Beazer Homes as well as resale homes.

 

 

 

 

Eagle Bluff - Eagle Bluff is a small subsection and has sold two homes this year.  There are currently two on the market ranging from  240K - 253K.

 

 

 

 

 

 

 

Edgewood Trace - Edgewood Trace sits on the edge of Tanner Plantation and has sold six homes this year.  There are three on the market ranging from 224K - 259K.

 

 

 

 

 

South Cove - South Cove is the newest of the neighborhoods and pershaps also its most unique.  Old style Charleston homes are built in this neighborhood.  Nine have been sold this year.  Seven homes are currently on the market with prices ranging from 154K-199K.

 

 

 

 

The Commons - a duplex style neighborhood that offers the convenience of a home as well as that of not having to worry about yard maintenance.  An additional regime fee is required.  Three homes have been sold this year and two are currently on the market at 130K each.