Overprice Your Charleston Area Home: Why Not?

A major home-selling decision arrives right at the start: setting your home’s price. It’s a step that can be decisive for good or for ill.

But what is the “right” price? We know what it probably isn’t—it’s not the first number that pops into your head, nor is it likely to be The-Price-of-Your-Next-House-Plus-the Cost-of-a-Family-Vacation-in-Tahiti-Plus-the-New-Sportscar-You’ve-Always-Wanted-to-Own. It’s also not a price that will ‘test the market’ (to make sure there hasn’t been an upward spike in demand since the last comparable neighborhood home sold).

Setting a home’s price in the right ballpark can be easier than many people assume. You can get there by a number of different routes, most of them tied to recent neighborhood history:

BUYER APPEAL

Setting a home’s price doesn’t take place in a vacuum: first come the buyers you need to attract. If your property is priced significantly above the market, your ‘market test’ will tell you that only uninformed prospects—or no prospects—are interested in pursuing your offer. An out-of-whack asking price can also be taken as evidence that the seller (you) aren’t really interested in making a deal happen, which will make professionals less likely to present it to qualified buyers.

AIDING THE COMPETITION

By setting your home’s price significantly above the competition, you do everyone else in the neighborhood a terrific marketing favor. Even prospective buyers who appreciate your home’s innate qualities may be unable to resist what suddenly looks like a real bargain-basement buy just down the street!

APPRAISAL REALITY CHECK.

Even if you do interest a willing buyer, unless he or she belongs to Warren Buffett’s country club, a likely next step will involve a mortgage lender’s appraisal. Setting a home’s price above any neighborhood comparable can mean an appraisal that comes in below the agreed-upon purchase price. Even if that doesn’t kill the sale through a loan denial, the buyer is likely to be penalized through a higher down payment or interest rate— either of which can play taps for your sale.

IT’S ONLY MONEY

Another (and perhaps the most persuasive) reason to right-price your home is monetary. History shows that overpricing generally yields proceeds that are significantly below those set more aggressively right from the start. It’s human nature: successive price reductions look like desperation—which invites low-ball offers.

If you are actively debating how to make the best of this spring’s Charleston selling season, give me a call. Together we can map out a strategy that works!  

Interested in selling your Charleston area home? Visit: www.jeffcookrealestate.com

Interested in buying a Charleston area home? Visit: www.discovercharlestonareahomes.com

-Jeff Cook

Jeff Cook Real Estate

Charleston, SC

For the Self-Employed, Getting a Loan Takes Planning

 You don’t have to tell anyone who is self-employed that there are extra costs that go with the benefits. In addition to the long hours and weight of responsibility that come with the job description, getting a home loan has always added special challenges. Now that we are into the new Dodd-Frank era of federal oversight, some of the changes warrant an early heads-up. 

The 2010 legislation that went into effect on January 10 created the Consumer Financial Protection Bureau, with the function of tightening the rules lenders follow in order to discourage the issuing of mortgages that borrowers can’t be reasonably expected to be able to repay. To deliver on that worthy purpose, more proof and more paperwork will be required to support the income claimed on loan applications (here you might well be hearing an imaginary smacking sound from self-employed persons reading this and whacking their foreheads—paperwork is the bane of the self-employed).

If you are your own boss and getting a loan in Charleston, SC is on your horizon, take heart! Just because it may be more difficult to apply for home loan doesn’t mean it’s impossible.

The new lending rules describe eight specific factors lenders should verify and document before advancing home loans. They includes the borrower’s assets, credit history, employment status and other debt obligations. The penalty for lenders who fail to do so adequately is that they may be legally liable if a borrower proves unable to repay.

For the self-employed, the extra burden can come with the requirement that borrowers be able to show consistent income (hear that forehead-smacking sound again?) The general rule is that borrowers be able to provide at least two years’ worth of personal tax returns. Since self-employed people getting a loan in Charleston,SC often have perfectly valid reasons for fluctuating annual incomes, it’s vital to talk with a broker and lender as early as possible to establish the taxable income level needed to qualify for a loan.

That talk should cover other areas. For instance, self-employed people have greater flexibility than most when it comes to reporting deductible expenses on their income tax forms. Since those same deductions result in lower net incomes, that can be problematical when it comes to getting a loan. One way to counter that problem is to demonstrate that the expenses incurred were used to buy things that will improve their business in the long term. Another approach is demonstrate that similar expenses are not likely to re-occur (particularly apt when a business is just starting up).

If you are among the self-employed—and plan on getting a loan—planning is key.  Get your ducks in a row now so the loan process doesn’t derail you later. It’s never too early to call me as an early resource before we get to move on to the fun stuff—your home search! 

Interested in selling your Charleston area home? Visit: www.jeffcookrealestate.com

Interested in buying a Charleston area home? Visit: www.discovercharlestonareahomes.com

-Jeff Cook

Jeff Cook Real Estate

Charleston, SC

Charleston Home Design Trends Focus on the Kitchen

Keeping your Charleston, SC kitchen looking up-to-date doesn’t have to be difficult or expensive. Contemporary home design in our neck of the woods is all about knowing what the latest trends are and which to choose when regular maintenance calls for a change in appliances or décor.

This year, eco-friendly appliances are definitely ‘in’—as are the pops of bright color meant to create a vivid and welcoming kitchen. And as convenience features continue to evolve, those are increasingly prominent factors influencing design choices. Especially if you are planning to sell your Charleston home in the near future, there are a few home design directions that are most likely to impress prospective buyers who’ve been exploring the latest kitchen trends:

Going green is a pronounced trend, not just in home design. Using renewable, Earth-friendly materials can be a way to update a kitchen while minimizing environmental impact. A sample idea would be a sustainable bamboo parquet butcher block to grace the kitchen counter or table. They come in beautiful, rich wood tones, and when large enough to cover a substantial counter area, can warm the feel of the entire room.

Another (almost diametrically opposed) current direction is to deck the kitchen out with a few of the latest high-tech gadgets. Even if you resist an ultra-modern look, a few chic techie touches can add a dash of luxury to your home. One example: Siemens makes a multimedia ventilation hood that has a 17-inch LCD screen with options for listening to music or watching TV.  It’s a creative way to make cooking more entertaining—and one that would certainly help make your Charleston listing stand out!

Bright colors have not always been popular in kitchens, but lately, appliance manufacturers have been less shy about offering exuberant finishes. You can find dishwashers, blenders, toasters, microwaves and refrigerators in bright blues, pinks, yellows, greens and oranges. It can be an inexpensive way to add a splash of color to your kitchen…although if you are planning on selling soon, in many instances I’d recommend caution: perhaps confining the color pops to bright accent pillows or colorful floral arrangements.

Copper is also an increasingly popular trend in kitchen design this year. Its natural antibacterial properties make it a practical home design element, and that cool, rustic hue looks great in warm, gold-toned kitchens. Copper sinks and faucets are both practical and stylish (although keeping them bright and shiny can be another story!).

If you are thinking of selling soon, consider incorporating one or two current Charleston, SC home design ideas if your kitchen could use a decor infusion.  Looking for more ideas?  Contact me today to discuss what is making today’s homes S-E-L-L!

Interested in selling your Charleston area home? Visit: www.jeffcookrealestate.com

Interested in buying a Charleston area home? Visit: www.discovercharlestonareahomes.com

-Jeff Cook

Jeff Cook Real Estate

Charleston, SC