Dear Clients, Friends and Fellow Associates~

I once heard that one of the reasons a property may not sell is because “The seller is the highest bidder”.  Of course, sellers do control the pricing of their property and as their REALTOR we control the marketing for the property.  However, one of the services we provide every seller is value counseling throughout the listing.  This means if we see a trend up or down, we will suggest a value to a seller for consideration.  Most of the time our counsel is accepted, but there are times where we may wait literally months before a seller decides to go to that price.  Often however it is too late by then.  Here are two sellers, both of equal value homes.  One sold their home in 5 months, the other sold in 3 years. 

Seller One – Trusts the Expert on Hilton Head Island

I met Mr. and Mrs. “Geterdone” in a listing interview.  They had invited three agents that were known to sell in the neighborhood to sit down with them and make a presentation.  These sellers had purchased a new home that was being built and had several months before they needed to close.  As in every interview we went through the checklist of our double top secret marketing programs that produce results for our seller and reviewed our raving fans worksheet.

The seller hired us to sell his home.  In our conversations with the seller we explained our role and theirs.  We explained that our job was to get agents and buyers interested in his home by marketing, their job was to make the home accessible, presentable and decide on prices based on market facts.  We also explained that we would advise them on value changes in the market throughout the listing period and make suggestions for them based on the market.

We listed the home at a value chosen as competitive in the market.  Within 30 days after the first agent tour, we saw few showings and low general interest and we had completed several marketing programs that should have driven more buyers into the home.  I called the seller and told them that something was wrong and suggested they tweak the value to see if it was price.   The seller did not flinch and asked what I would suggest and I told home to adjust it 1%.  The seller immediately said “Let’s do it”

Unfortunately, we did not see an increase of activity.  This time we reviewed the market, the marketing, the accessibility, the condition and location and found nothing wrong.  We also determined that it was not the economy(because other properties were selling), the inventory or the current interest rates.  It had to be the value.  This time we suggested a much larger adjustment.  The seller immediately said “Whatever it will take, we trust you”.

The price change increased interest and showings but we went another two weeks without an offer. I called the seller and said we are close, but need to tweak the value again to cause the sale.  Without any hesitation they said “Go for it”.  Keep in mind we were still 4 months away from when they had to sell.  Within 1 week of this adjustment we received an offer that was within 2% of the asking price and only 9% off their original asking price.  Today they can honestly look back and say they saved money by trusting their agent.  

Seller Two – Is the Highest Bidder on Hilton Head

I met Mr. and Mrs. “Tinkaboutit” in a listing interview too!  They had invited two agents to review the market and help them sell their home.  This time we did not get the listing in the first go round, however we did get the call to list the home after it did not sell with the other agent.  We set our marketing into place and positioned this home in the tours.  We received very little traffic and we called the seller to review everything and determine what could be corrected.  This home was drop dead gorgeous in a great neighborhood and we should have had more interest than we had.

No activity took place in the first thirty days.  We called the seller and arranged a meeting to discuss the market, the marketing, the economy, and the sales we had had since we had listed it.  We suggested based on trends a value correction.  The seller said he would think about it.  I called several more times as we really were seeing little to no traffic and I explained that buyers remained stealth until they saw value on thier computer screens back home.  We were told that the home was worth what we were asking and it was simply a function of market.

Christmas came and the seller asked to take the home off the market through the holidays.  The problem I explained in doing this is that the Island gets busy during the holidays as owners and visitors travel to the warmer climate.  Sales take place and I did not want them to miss a single buyer.  They took it off the market anyway.

Spring came around we were contacted by this seller to  the re-list this home again.  This time we suggested a value that would sell this home in 30 days.  Needless to say the seller told us they would think about it and get back to us.  The seller chose a price 10% higher than our suggested sale price.  We moved from no chance to little chance and did not get a single offer for the rest of this entire year.

Christmas approached and the seller called and took the property off the market again!  We reminded them again about not missing a single buyer.  They did it anyway.

In the spring they contacted us to list the home and asked us what we thought the value should be.  The value we gave them was an additional 10% less than our previous suggested selling price.  This time however the seller said “Let’s do it!”  Long story cut short…we sold the home within 60 days only 2% off their new asking price.  In total this home sold for 27% less than the original asking price in just over 3 years.  This seller had chased the market thinking about their value corrections and not selling until they took action. 

In today’s rapidly changing real estate market, your real estate agent can counsel you on price trends and you should trust their recommendation.  If you would like for us to give you a valuation, please do not hesitate to call.  We have been designing selling strategies for sellers for now 24 years on Hilton Head Island and can help you.

From a market and Island that we know~~

We are respectfully,

Robbie Bunting & Jane Hyers

robbie@robbiebunting.com

800-932-3652

Dear Palmetto Hall Property Owners and Friends~
 
Linked below, is the Palmetto Hall Market Report Update.  This report shows the active listings, the current pendings and the sold properties.  Please note the average per square foot for the actives, pendings as this can help determine current market.  Please click below.

Dear Clients, Friends & Fellow Associates ~

As a Realtor on Hilton Head Island I am often asked about three things.  The weather, the market and my family.  In order to save some time, I have summarized all of these in one handy print out.  So now when I meet a buyer I can hand this to them as we jump in the car to find their paradise!

Smart Buyers will rush to buy real estate this winter.  Interest rates are forecasted to rise in spring of 2010 if the Federal Reserve stops purchasing the mortgage-backed securitiees.   We could see interest rates crossing 6% by the end of March 2010 if this occurs.   This would mean a loss of buying power up to $60,000 for a $350,000 loan.  The additional interest alone would be $108,000 more paid over the life of this loan. 

Hilton Head weather is simply better!   The Island is kept warmer in the winter and cooler in the summer by thermos or the ocean breezes over the warm sea(that is why you see people swimming in the ocean in January).  In fact, our moderate winter days are typically warmer than other inland southern cities.  As well winter months have less rain than the wetter summer months with sub tropical temperatures that are perfect for snowbirds or real estate shoppers looking for a warm weather escape.  The winter is the Island’s sports season, which is perfect for golf, long beach walks, biking, tennis and most other outdoor activities.

The real estate market is healing.  The market is healing from the bottom up and months of available inventory is decreasing in properties under $750,000.  As these markets heal, buyers with equity will be purchasing our larger properties that offer attractive pricing.  Homes will see a jump in all price points if the new housing credit passes later this week.  First-time home buyers would be eligible for $8,000, but purchasers don’t have to be first-time buyers. Anyone who has owned a home for at least five years could get a $6,500 credit on a new residence. 

My son’s are touring colleges.  Many of my clients have been buying and selling real estate with me before I had a family.  It is hard to believe for both of us that we are now looking at colleges.  My wife is a great planner and has made me realise it is important not to take a chance on time.  I pass this on to you as timing has never been better to buy real estate…please note time flies!

From Hilton Head Island with great winter weather, great prices and great families~

WE ARE~

Robbie Bunting and Jane Hyers

P.S. Baby Boomers are now turning 60 at the rate of 8,000 a day and represent 38% of our total population in this country.  The way I see it based on 2.5 million visitors per year to Hilton Head Island, we have over 950,000 of these Baby Boomers visiting the Island with about 50,000 of them turning 60 years old every year for the next 17 years.  Our recommendation is to be ahead of this herd!  We are just beginning to hear the rumble.

Three Course Early Dining – $15

Add a Glass of House Wine – 3.25

Early bird specials, everyday 4:30-5:30.

1513 Main Street • 843.842.8866
Open Daily 5pm • Friday 4pm

Happy Hour 5 – 7 • Friday 4 – 7
$10 of bottles of wine
$1 tokens on all drinks

First Course – Choose One

House Made Pimento Cheese Dip

 Tillamook Cheddar – Smoked Gouda – Fire Roasted Sweet Peppers – Mediterranean Olives – Panzanella Crackers

Roasted Eggplant Dip

Fire Roasted Sweet Peppers – Feta Crumbles – Seasoned Pita Chips

Smoked Salmon Spread

House Hickory Smoked Salmon – Panzanella Crackers – Caper Relish

Yukon Gold Potato Chips

Fresh Chives – Gorgonzola Cheese

Second Course – Choose One

Dinner Salad

 House Greens – Crisp Garden Vegetables – Choice of: Cranberry Balsamic, Creamy Avocado Caesar, or Sweet and Sour Honey Mustard Vinaigrette

“Not so Traditional” Caesar

 Crisp Romaine Lettuce – Creamy Avocado Caesar Dressing – Manchego Cheese – Crispy Polenta Croutons

Soup Du Jour

Fresh Soups Made with Love Daily 

Third Course – Choose One

BBQ Skewers

Pork Tenderloin and Vegetable Skewer – Sweet and Smoky Barbeque Glaze – Smoked Gouda Grits – Cole Slaw

Grilled Lamb Chops

Savory Herb and Garlic Marinade – Mashed Potatoes – Grilled Asparagus

Cedar Plank Roasted Salmon

Sweet Bourbon Soy Glaze – Mashed Potatoes – Grilled Asparagus

Hawaiian Flank Steak

Teriyaki Glaze – Mashed Potatoes – Cole Slaw

Shrimp or Chicken Pasta

Angel Hair Pasta – Choice of Alfredo Sauce, Tomato Basil, or Tomato Cream Sauce

Cripsy Fish Tacos

Fresh Grilled Mahi Mahi – Roasted Corn Salsa – Cilantro Lime Crème Fraiche – Grits

Fried Seafood and Chips

Fried Shrimp – Scallops – Mahi Mahi – Cole Slaw – Homemade Potato Chips

Margherita Pizzetta

Tomato Basil Sauce – Fresh Mozzarella – House Made Basil Pesto

Dear Friends, Clients and Fellow Associates~

I love the old qoute from President Kennedy…”ask not what your country can do for you; ask what you can do for your country”.  You and I must do our part.  Face it, real estate is bigger than the auto industry, bigger than banking and we can turn it around by working together.  If you are a client, seller, buyer or fellow agent there are a few things we can do for our Country and Hilton Head Island!

For my clients on Hilton Head(and everywhere):  

You hold one of the keys to recovery.  You can help turn this economy around simply by cutting and pasting the next two paragraphs and e-mailing them to 100 names in your contact list.  By adding more buyers into our market, things will move faster.  We need for you to push this along and send them this message. 

Act now….Buy Hilton Head Real Estate!

“This is the very best of times to buy real estate in Hilton Head. There is literally NO REASON to hold off anymore. Neither the pricing or the rates are going to improve. The thing that will improve is attitudes, and when they do, the pricing will be gone! The rates(and inventory) are good for another 6 months or so, and then they will be gone too when inflation starts to hit. So if you are hesitant……let me tell you firmly  that it doesn’t get any better!!     You need to move now and contact my finance and real estate guy on Hilton Head Island.”  said David Crowell of Mortgage Network(a guru of financial strategy)

To get started send Robbie Bunting(My Realtor) an email at robbie@robbiebunting.com .  He will send you a package on all the wonderful real estate opportunities offered on Hilton Head Island.   Simply fill out the Pre Strategy Session worksheet(which can save you thousands in negotiation and fax it back to 1-866-680-1137.)  

For my sellers on Hilton Head Island: 

Stand your ground.  You either want to sell or you want to stay…you cannot do both.  Right now there are buyers that are actively seeking properties, but they will not buy an overpriced listing.  If you are not serious in selling, take your property off the market. 

If you are serious in selling.  My suggestions to sellers includes:

• Adjust the value(you may need to adjust 5-10% before you see showings or an offer)  BUYERS INTEREST IN AVAILABLE LISTINGS
• Offer a $5,000 closing allowance for the next 30 days.
• Spend $5,000 in improvements(call your agent and have them do a walk through with you.  Only “sharp properties are selling”

Doing something is better than taking no action at all.  Do something, better yet do all three!

For my buyers on Hilton Head Island: 

Don’t miss the bottom.  The last 4 recessions were officially announced an average of 522 days (17 months) after they were over.  How are you going to get the best property at the best price?  By making an offer today.

Have you called your realtor recently?  If not, pick up the phone and encourge your REALTOR.  Hearing from you will motivate them and start the process that will help turn this economy around. 

For my Fellow Agents on Hilton Head Island: 

Our country needs you to sell.  Don’t let the economy bring you down.  We need you right now to work harder than you ever have.  You can help turn this economy around.  Your job right now is very important.  So let’s all start encouraging buyers, sellers and fellow agents to take action.  Don’t forget to build the value of  Hilton Head with your buyers…and call your sellers and tell them they are in denial if they have no showings or offers at this time of year.  As salespeople we need to take charge, encourage, use good news, communicate and push harder.

In summary:

Our country and Hilton Head Island need you to get off the fence.  Nothing else can turn this economy around.  You can do it!  We will help.  Thank you.

Live life fully on an Island!

Robbie Bunting & Jane Hyers

 P.S. The last 4 recessions were officially announced an average of 522 days (17 months) after they were over.

Dear Friends, Clients and Fellow Associates~

I asked my good friend and financial strategist, David Crowell to put together some rates and thoughts of the market for your review.  This guy is really the Guru of Finance and Strategy. 

If you are even thinking of buying, refinancing or are simply researching real estate, fill out the Free Strategy Session Questionnaire and we will set up a free financial strategy meeting with David Crowell.  His office will schedule a phone or in office appointment with you.  You can fax this easy questionnaire back to 1-866-680-1137.  If you plan on owning someday or own right now, you have everything to gain.  (Be sure to ask him about his free refinance for life program for his clients when you meet!)

Enjoy this great fall weather…

Robbie Bunting & Jane Hyers

A note from David Crowell:

Dear Robbie,

I am taking a minute to give you my assessment of the real estate market. Obviously, as the largest lender in the area, we see lots of people, and we see lots of transactions. So this gives us a different perspective.

First,  Market Values. Because a number of properties on the market are selling as a result of foreclosure and “short sale”, apparent values can seem extremely low. For example if someone in a $600,000 neighborhood is foreclosed, and the bank sells at $250,000, this causes enormous heart-burn. It does not however mean that everyone else’s home is now worth $250,000! It means that there is downward price pressure, but not a call to 911. Conclusion: A sensible buyer needs to be happy for the current bargain prices, but not be seduced into thinking that everything is a “steal”.

Second,  Interest Rates. This is simple and often over-looked in this market. Rates are at ALL TIME LOWS . the government’s effort to push them down HAS WORKED. Property is roughly 25% less expensive to own due to rates alone than it was 3 years ago. Add that to pricing discounts of 20% across the board…..and you have a discount to the cost of ownership of 45%. This is truly amazing and not sufficiently emphasized.

Third,   Availability of Financing. We have money coming out of our ears! We have jumbo loans up to $3 million! We have FHA financing for 1^sttime homebuyers up to 96.5%, which coupled with the $8000 rebate is 100% financing.

There simply is NOT an availability issue. What is different? Pretty much the sole significant difference is that down payments for most homes (not first homebuyers)  now need to be 20%. We find that there is virtually no borrower who cannot find the necessary down payment somehow or other.

Last, Over-all Assessment. We are busy as can be. Much of our time is spent helping folks who are heavily invested and need to lighten the load. But for anyone who is in the position to be a Buyer…..this is the very best of times. There is literally NO REASON for a potential Buyer to hold off at this time. Neither the pricing or the rates are going to improve. The thing that will improve is attitudes, and when they do, the pricing will be gone! The rates are good for another 6 months or so, and then they will be gone too when inflation starts to hit. So if you have anyone who is hesitant……let me tell them firmly  that it doesn’t get any better!!

Anyway, hope this sums up my state of mind on a Monday morning! Best to all, David.

David Crowell

Senior Loan Officer

Mortgage Network, Inc.

1000 William Hilton Parkway

Suite 205

Hilton Head Island, SC 29928

Office: 843-842-4004

P.S.  ~ We have attached a FREE FINANCIAL strategy session with the guru of financial strategy.  Simply print it out by clicking a Free Strategy Session Questionnaire, please fill it out and fax it back to 1-866-680-1137.  David’s office will call and schedule your session either in person or in office.  Thank you.

A note from Bob Arundell:

The SC State Legislature determines to what owners property taxes apply.  During the due and cry when voters were clamoring for property tax relief(Remember California’s Proposition 13?), the SC State Legislature granted resident homeowners an exemption from paying school operations taxes. To replace those funds, the State Legislature added a 1% sales tax that goes directly to fund school operations.

One problem is that the sales tax did not bring in as much money as the property tax relief granted to resident homeowners took away. The local school board looked into imposing what is called an “impact fee” on all new construction to divert some of the cost of building new schools; however, as it turns out, the State Legislature also prohibits school districts from imposing impact fees. The local district also does not have the authority to alter the sales tax rate. Finally, in an effort to send more funds to the poorest school districts in the state, the SC Legislature passed a law that allocated the state’sgeneral public education funds based on the relative “wealth” of each county.  A county’s “wealth” is determined by looking at its total property tax base (i.e. the fair market value of all real estate in the county.) By virtue of its resort, beach oriented nature, Beaufort County was ranked as the”wealthiest” county. As a result, the local school district’s allocation of the state’s general public education funds went from a high of about $35 million to zero last year.

The bottom line is this: The Beaufort County School District is charged with educating about 20,000 students. The only source it has to increase revenues for operations is to raise the tax mill on commercial and non-resident property owners. The good news is that for the coming year, the school district has set the commercial and non-resident property owners at a level that is 10.2% LOWER than the year before! Because property values were re-assessed for the coming tax bills, the school district believes that those whose property values increased by no more than the county average (11.4%) will not have a tax increase for the coming year.

As there are far more “poorer” counties than there are “wealthy” ones, there are not enough votes to change the laws right now. Out of state owners should complain to the U.S. Congressman or Senator about how they are being discriminated for being an out-of-state property owner.

Hope this answers the question.

Bob Arundell

Tax Attorney and CPA

843-785-8040