Myrtle Beach Market Conditions

What kind of buyer are you?

1. Must buy now.

Do you have a good credit rating? Don't know? Go get a pre-qualification letter (check the sources below). Do you have money to put down on a mortgage? There are still a few lenders who will loan 100% if you credit is good and all other information on you is good (job, debt to income ratio, etc...). You're in great shape. Why? Well for starters there are a great selection of properties available on the market. Secondly, the prices have come down to the level they were several years ago on most properties. Third, mortgage rates are incredibly low. Will the prices on these homes come down even further? Maybe. The properties also have a good chance of going off the market so you may never get to see them. Oh and by the way, the asking price is not necessarily the selling price. Most sellers will sell for a lower price in this buyers market. If you must buy now but you don't have that perfect credit (or anything perfect), talk to a lender anyway. They are experts at finding the right loan for you. If its out there, one of them will find it. Now go. Seriously, go now. People hate spending the money but are very happy just moments after the closing. Are you still here?

2. Would like to buy now but are concerned.

This is understandable. The media tells us that we are moving towards a recession, the candidates say they are going to stop the downward spiral of the economy, the jobless rate has climbed up to 5%, consumer confidence has lowered and the worst thing...my mothers cookie jar is empty. Let me put your fears to rest. I'm not an expert but... read number 1. above about the real estate market and where the loans are and property prices. If buyers would buy in this great market the housing problem would be reduced to where it is no longer significate. Until the jobless rate gets to 6% it hasn't been considered bad (in the past). Of course consumer confidence is down, the media says is should be enough that people eventually believe them. Here's a hint, stop believing what the media tells you. They get it wrong many times or don't include the whole truth. Lastly, my father should be baking soon so the cookie jars will be refilled (they always are). So what does this tell you concerned buyers. It tells you that consumers determine the direction of the market. Politicians and the Fed Chairman are just trying to push the economy in the right direction. Forget all these guys and go find the property that makes you happy.

3. Want to buy now but can't get the loan.

Hang in there. The Fed (the people who lower or raise interest rates to help banks and mortgagers sell loans) are trying to help you by lowering bank rates which will allow you to get loans. There is a cycle that the banking industry goes through that takes loans away from would-be buyers that have lower credit ratings but then later restores the loans because the market takes a downturn. That has happened and people are now working to improve the loan situation. A great idea would be to go see a mortgager for advice on improving your credit score. This could help you a lot. Don't be afraid of talking with a mortgager because just a doctor, the mortgager has probably seen it all before. So as I said, hang in there. Your time is coming.

What kind of seller are you?

1. Must sell now.

Buying another piece of property but must sell this one first? Moving away and can't be tied down trying to get this sold? Or maybe you are just trying to get away from the kids and plan to leave no forwarding address (Sorry, they will find you). You must understand that time on the market has several factors that must be considered. Location, condition and the big one, price. You can have a great location with the property being in great shape but without a good price the property will most likely go unsold. What does this tell you? It says that you must be right-priced. That is to say that for each property there is a price that is low enough that someone will buy it in a certain amount of time. The higher the price the longer you must be willing to wait for a sale. During this market (a strong buyers market) you should get a competitive market analysis to determine the price of like-properties that are selling around you. If you must sell now a good rule of thumb is to lower your price by 10%. This should speed things up (no gaurentees though). If that price is too low you may want to talk to your real estate agent on some low cost improvements that may help raise the value of your property in the buyers mind. Remember, its what the buyer thinks is valuable not the seller or the real estate agent. A good real estate agent should be able to guide you thorough this. Your agent is on your side. He wants to sell your property at the highest price in the best time he can get it. Trust him (or her) or get a new agent.

2. Want to sell but don't have to.

You are in a great position. You can wait til the market moves back up to you in many cases. If this takes a year then so-be-it. Here are a few things to remember. One, the real estate agent that you use may not want to spend a lot of money on advertisements if he knows that the property is priced too high for this market. Two, He may ask you to lower your price to be competitive with the rest of the market. He may ask you this several times. He is not being pushy, he is trying to get you to right-price your property so it will sell. Three, spending a lot of marketing money on a property that is not right-priced is a waist of money in most cases (you may real lucky). If you're not willing to be right-priced, the best advice is to wait (while continuing to talk to your real estate agent) until the market has come up to your selling price. If you are spending money on this property (HOA fees, electric, water, etc...), you may want to consider this and lower your asking price. Point is, talk to real estate agent.

Myrtle Beach Real Estate serving the Grand Strand since 1973

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