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 Clients, Friends & Fellow Associates ~

This week we met several Islanders that offer great services on the Island.  Of course if you are looking for great properties please visit www.robbiebunting.com.  Please feel free to contact the following direct or email us if you have any suggestions.

Montgomery Law Firm 

Hunter Montgomery has helped my wife and I with several of our purchases through the years and started his own practice.  He is a very personable guy and a great real estate attorney.  Attorney fees that Hunter charges are $475 for purchasers and $400.00 for sellers and refinances.  Contact Hunter Montgomery located at 200 Main Street, Suite 201-J by calling (843) 301-5267 / (843) 681-5583 (fax)  or email wahm@mindspring.com

Ocean Tides Spa

Sandy Norris at the Ocean Tides Spa is highly recommended.  With a special $75 treatment which can include A Calming Currents Massage, The Tides Stone Massage, or The Dive Deep into the Tissue Massage.  Call Sandy Norris at (843)341-8056 and make an appointment with her.  You will love heading  down to the Oceanfront Hilton in Palmetto Dunes and can even pretend you are on vacation for awhile before and after your massage.  The Hilton has a great beach, wonderful wine bar and a calming presence.  Enjoy.

ForeShore, Property Management and Marketing

If you are thinking of Rental by Owner Services for your Hilton Head Property, contact Brian Tierney (a local)and he will send a welcome package or meet you at your property(or the property you are considering).  His fee is 22% for marketing and cleaning which is very competitive and he starts at 15% if he only promotes the property.  He will get you up and running on VRBO and other internet websites and does a great job.  Brian Tierney can be reached at 843.564.5538 or on his cell at 843.304.9192.  Email him at brian@foreshorerentals.com

Gentle Spray

Ted Brammer did a great job powerwashing my home.  In fact, I now do this every year.  The benefits include looking new again, getting the north side mildew off the home and cleaning up my service yards and driveway.  The fee is reasonable and beats renting or borrowing the equipment and doing it myself(I tried and this and will never do it again!).  Call Ted Brammer at (843)671-2929 or email him at gentlespray@hargray.com

Full Service Accounting

Janett Morris has done my book keeping for years now and I must say that it has not only saved me money as she reviews my billings, it has also saved me time.  I have taken this time to sell more.  She has 30 years of experience and picks up and delivers payroll and bills.  Call Janett at (843)422-4298 or email her at Janett_Morris@yahoo.com

We hope that these contacts serve you well.  Please be sure to mention to that you found their contact information on our blog!  Thank you.

From a great Island with great People~

WE ARE~

Robbie Bunting and Jane Hyers

robbie@robbiebunting.com

Dear Clients, Friends and Fellow Associates~

The other day a client that was considering a villa purchase and heard that insurance was expensive in this area.  He was from an area that offered lower insurance rates, but higher taxes(Long Island).  As we compared our rates and taxes to his taxes and rates we found that ours were lower.  However when we compared lifestyles and temperatures on Hilton Head Island to Long Island we come out way ahead. 

A Newbies guide to Insurance coverage on Hilton Head Island:

Insurance for Villas on Hilton Head

When you purchase a villa or condo the Insurance for the structure is typically billed by the regime fee.  The regime fee usually covers part of the insurance costs for the year and as insurance is billed annually, the regime will bill the owner for any shortfalls.  A policy every owner should get on their condo or villa is for contents and liability.  These policies are typically under $1,000 per year.

The three parts of Insuring a home in the Low Country. 

1. The first part is your homeowners coverage.  Your Homeowners Policy will cover your home for losses due to fire, lightning, water pipe leaks, as well as liability, in case someone is hurt on your property.
2. The second part of the Insurance is the wind coverage. This is issued through the SC Wind & Hail Association. Typically we see homes listed with a 3% deductible. To explain what that means – if you have damage caused by a regular wind storm, the deductible is 1% of the home value. If you have damage done by a “named storm” or hurricane the deductible is 3%.
3. The third part of the Insurance is flood coverage. This  will be offered through the Federal Flood Program. The maximum coverage is 250,000 on the dwelling and 100,000 contents. This is a Preferred Flood Program and those are the set limits.

If you have any questions regarding insurance or wish to shop your current programs we have listed three agents and the companies they work for:

Insurance agents on the Hilton Head Island

Jeff Althoff, Agent
Beaufort County Farm Bureau
PO Box 4488
Beaufort, SC 29903
Ph:   843-522-0031 Ext. 234
Cell: 843-812-2921
Fax: 843-522-0785
jeffalthoff@scfbins.com

Teena Farrell, CISR
Agent/Broker
Seacoast Insurance
843-341-1676
tfarrell@seacoastinsurance.com

Don Earnhart
Kinghorn Insurance
1160 Fording Island Road (Hwy 278)
Bluffton, SC, 29910
843-837-8000
Dearnhardt@kinghorninsurance.com

If you need a home or villa, right now the pickings have never been better.  If you cannot find it in this market you will never find it.  Please visit www.robbiebunting.com for home, villas, lots and visual tours!

Happy insuring…

Robbie Bunting & Jane Hyers

800-932-3652

robbie@robbiebunting.com

Dear Clients, Friends and Fellow Associates~

Real estate is like hockey.  I started thinking about this the other day when I was watching my son play ice hockey in Charleston. My son’s coaches tell the players to “keep their heads up” as they skate with the puck down the ice.  Hockey players keep their heads up or become easy targets by the other team members!  As I thought about this advice, I realized that this was smart advice for hockey or in business.  By keeping our heads up our attitudes are better and we are less likely to get knocked down as we head towards our goal.

You cannot play hockey or real estate sitting on your butt. 

My dad told me this when I first started my career in real estate.  Realtors and Hockey players may get knocked down from time to time if they are in pursuit of achieving their goals.  It is that simple.  If you have not been knocked on your butt it means you are not in the game.  The key is to get off your butt and skate or sell.

Real Estate and Hockey both require contact. 

My mom taught me that real estate is a contact sport.  As in hockey, real estate agents need to be shoulder to shoulder with their client in order to close a sale.   In fact, my mom had a buyer and seller in a stalemate and rather than trying to fight it out, she invited both of them to breakfast together.  She believes in contact and she closed the deal. 

Real Estate agents and Hockey players must stay focused on the goal. 

As you head towards your goal it is very likely you will have outside pressures that can take you further from achieving them.  The key is to stay focused and never give up.  As a realtor or hockey player it is important to know what your goals are and work towards achieving them.

Real Estate agents and Hockey players need coaches. 

A good coach helps agents and hockey players achieve and see things differently.  My coach has pulled me forward in business strategy.   Not only does he make me focus on my daily game, he is alway improving my skills and planning the next game.  Hockey coaches work the same way, the only difference is as an agent I appreciate not having to do suicides after losing my last sale.

So if you are a hockey player(like my son) or a real estate agent(like me) the key to making a goal or making a sale is to keep your head up, listen to your coach, focus on the goal and don’t ever give up.  I look forward to working with you in the future as we head towards our goals together.

From an Island without Ice,

 
Robbie Bunting & Jane Hyers

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 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