Need a little help with the entire process? This is the complete guide to owning property in the Lowcountry:
If you would like a printable copy of this document, click here for a PDF.
THE PROCESS:
- The Financing: Take the time now to see what you qualify for. Even if you are completely solid, talk to a lender or a few and find out what possibilities you have. Feel comfortable with your payments, rates, and terms even before we begin. If nothing else, it’s free financial credit advice from a professional! Please see me if you do not have any in mind and I can provide you with a list of reputable banks, lenders, and mortgage brokers.
- Talk to your financial advisor: If you are pursuing an investment property or looking into getting a piece of this paradise and use it to build your portfolio or for tax relief’s, please consult your financial advisor or your accountant. Everyone has a different idea or outlook on what they can do on passive gains/losses, please find out from an expert!
- Find a Realtor: Hopefully you are using the best…uh; hum ME, if not, good luck! Just kidding, but do use a Realtor®, it costs you nothing and it can be the best move you make!!! You want to find a Realtor® and choose one and know that there is a difference between a Realtor and a real estate agent! Remember that it is state law to have the Realtor or Real Estate Agent DISCLOSE his or her relationship to you. You must read, understand, and sign the SC Disclosure form. The Realtor or real estate agent will represent the Seller and you as a customer. This changes if and when you decide to become represented by your Realtor or agent, meaning, you become a CLIENT and they become your Buyers Representative, still at no cost to you. If you become a client, we will sign a Buyer Agency agreement, outlining our agreement. So now you really get represented and they owe you Fiduciary duties:
- Obedience
- Disclosure
- Loyalty
- Accountability
- Confidentiality
- Reasonable Care and Diligence
It is also important to know if your Realtor or Real Estate agent represents both parties: Dual Agency. This means that the Realtor or agent represents you and the seller………..Could become a conflict of interest. We either represent the buyer or the seller, never both. If we sell our team listings, we still will only represent one party, the other could seek other representation or simply become a customer, not a client. If this sounds confusing, let me know and I can explain this process in more detail. Pick a Realtor and work with him or her, but choose ONE that you both feel comfortable with and that is representing your interests.
- The Search: Well, if I have given you this, we have probably started to find out what it is you are looking for: A primary residence, a second home, a vacation rental property, or some type of investment property, i.e. land. Here are some sample questions to ask yourself:
- What type of property are you looking for?
Primary Residence __________
Second Home or Villa __________
Rental Home or Villa __________
Investment Property __________ - What size property are you looking for?
Number of Bedrooms: __________
Number of Bathrooms: __________
Approximate Square Footage: __________ - What type/style of floor plan would you most like?
Single Story: __________
Multi-level: __________
Split Level: __________
Ranch: __________
Other (please specify): __________ - General Questions:
- How long have you been looking?
- How have you been looking?
- Are you currently working with anyone else?
- Do you have any signed agreements with other Realtors?
- Are you pre-qualified?
- What steps do you need to take to obtain financing?
- What price range are you looking in?
- What are you basing your price range on?
- Describe your dream house (that fits in your price range):
- What are some of the things you don’t want?
- Tell me five things you love about your present home:
- What type of property are you looking for?
- Take Your Time: One of the most important things is to take your time!!! Make sure we find what it is you are looking for. The Island and the Low Country have so much to offer, find what you want, get specific, then we can gradually narrow down our search. I can get you any and all of the information you need, that’s the easy part! Don’t think or let someone tell you: “You better buy now, it won’t be here" BLAH, BLAH, BLAH…you buy when you are ready, not when someone tells you to!!!
- Plan ahead: If at all possible, let me supply you with information way ahead of time, via internet or snail mail, it’s worth it! We can save a ton of time if you are somewhat familiar with the market values, taxes, costs, the areas, and maybe even some of the villa complexes. Again, if we have time, we will keep narrowing down each time we look at property or each time you come down here for a visit. If you find a complex or an area you like, but there are no availabilities, I will MONITOR the market constantly! If something comes on, I will find it, and most likely before anyone else does: Then get you some digital photos and all the information on the property fast! Believe me, if your dream home is not on the market now, in time it will be, so don’t get discouraged. It’s much more important to find what it is you want and not to settle for less!
- YOU HAVE FOUND THE PERFECT PROPERTY: Now my job really begins: Make sure, before we make an offer the following is addressed: The expense information, the management fees (if there are any), the history of the complex/upcoming assessments, the assessments if any of the street/plantation. Our financing is set or we know where we stand on this. Do we have a closing date in mind and have we discussed what our next steps are going to be. It may sound confusing, but this is why you have me!!! Basically, we do not want any surprises! Once we are fine with everything, we can proceed!
- MAKING THE OFFER: Well we have made it this far and hopefully by now our research and hard work will pay off. Let’s make sure we discuss the following.
- Initial offer must be written. If you are thinking about presenting an offer and need to find out if it may be too low, or if there is an offer on this property, have your realtor call and get as much information before you actually write the offer.
- When writing the offer, we always use the SC association of Realtors standard contract, a legal real estate contract in South Carolina. Remember, to bring a checkbook when submitting an offer, we do not write offers without a check for earnest money.
- Points in the contract to discuss:
- Offering Price
- Finance contingency
- Date of finance contingency
- Earnest Money
- 2nd Earnest Money
- “AS IS"
- CL 100
- COUNTERS TO PREPARE FOR
- Inspection Report or Inspection Addendum
- Assessment Protection Clause
- Other Points of Interest or necessity that might be added that pertains to property.
- A closing date.
- Any questions you may have.
- Your Realtor will discuss all of these points in the contract, but please feel free to ask away on the questions. Without going over all of these or all of the possible different scenarios, here are a few that always warrant a few questions:
- Earnest Money: A lot of people are unsure what to put down for earnest money (Initial and second). You usually have an out of town owner and an out of town buyer, so a strong earnest money 5-10% is very normal and makes the most sense. The stronger the earnest $$$, the stronger the contract, plus you still have other contingencies to protect yourself, as long as you stay within your time frames within the contract.
- Inspection/Inspection Addendum: It is always important to get a home inspection; it’s the smartest move you can make! You want to know exactly what is wrong with the home or villa or what isn’t. The seller is responsible for the following: ALL Appliances, Heating/AC, Electrical, Plumbing, and/or Safety concerns shall be in good working order, subject to reasonable wear and tear. You are not always buying a new home, so remember that! Also, some homes will have Polybutulane piping, or lead paint, or other items not in code today that were in code when these homes were built. This does not mean that the seller has to provide all new piping or replace all of the walls. The most important reason to get a home inspected is for the Buyer to know exactly what he or she is getting!!! The purchaser can choose the inspector and is responsible for paying him/her as well.
“AS IS" is just what it says! - CL 100- Seller agrees to provide at its expense at closing an “Official South Carolina Wood Infestation Report (CL-100)” in which no infestation or damage is reported or if there is damage observed, that it is insufficient to recommend repair. Such report must be dated within 45 days of the Closing. If infestation or sufficient damage is observed, Seller shall cause same to be repaired prior to closing or permit Purchaser’s closing attorney to escrow funds from the sales proceeds at Closing in an amount equal to the costs of such repair.
- Again, you will write the offer and the check, payable to the seller’s Real Estate Companies ESCROW ACCOUNT. Please read and review the SC disclosure if you have not or have decided to change from a customer to a client. Sign and initial/date everywhere you need to and PLEASE make sure your Realtor or Real Estate agent makes you copies. Personally, I always hand deliver the contract, if possible, but a signed fax contract is also binding and usually the only applicable solution.
- REMEMBER: Sometimes you may not find out right away (Out of town seller), your Realtor will let you know the second they respond, they have to, make yourself available to or at least discuss a game plan! Sometimes I place an expiration date on the contract or may even add a “Time is of the Essence�? clause if we need to know ASAP! Generally a verbal counter is acceptable, usually a counter is expected in some form: Ex: Counters
- Price
- Closing Date
- Earnest Money
- Contingencies
- Terms or additions
Once both parties come to an agreement, this verbal or these verbal counters must be signed/dated/ and documented. A fax is fine for now; an original should also be obtained.
- YOU MUST CHOOSE: The buyer and seller have to choose a SC Attorney, your Realtor should have a list of them. You must also choose a Home Inspector, see what your time frames are, it’s usually ordered within 10 days of the signed contract.
- This is where you find out how good your REALTOR really is. The work really begins now and follow up to the tee is absolutely crucial……………I am the best here and my follow up is always documented, with copies to all parties and all attorney’s involved……….Paper trail! I will stay on top of the lender (Get the finance letter), stay on top of the inspection process, document what we will have done, copy the attorney’s, make sure follow up has been done and repairs are being made, handle any issues that may arise, and the main thing is KEEP YOU INVOLVED AND KEEP COMMUNICATION LINES OPEN!!! Remember, we will not close until I do a FINAL WALK THROUGH on your property, the day before and/or the day of closing. Making sure that everything has been completed and the home is in order. Please feel free to contact me with any questions.
- YOUR ATTORNEY will send you a letter explaining what you need to expect during the closing process. Remember your closing costs will be approximately 3% of your purchase price. They handle the transition with electric company and water/sewer. You need to be responsible for phone and cable, if in a home: pest control, trash pick up, and termite bond, etc. Any questions I cannot answer, our attorney will know, or I will find out!
- INSURANCE: You will need to choose insurance: Home owners, Flood, and wind/hail, to name a few. It’s always good to check with a few companies, compare rates and/or programs. Please let me know and I will provide you with some names, if you do not already have some.
- MOVING CHECK LIST: Things you may need to do before you move!!!
SERVICES:- GAS
- Lawn Service
- Cell Phone
- Electric
- Newspaper/Magazine
- Mail Service
- Phone
- Security
- Cable/Satellite
- Laundry
- Garbage Collection
- Fuel -Maid Service
- Water/Sewer
- Septic
- Pool Service
ACCOUNTS:
- Bank
- Investments
- Brokerage
- Home/Life/Health/Auto/Misc. Insurance
- Financial Advisor
- Charge Accounts/Credit Cards
- Retirement Accounts
- Gym
- Department Stores
AGENCIES:
- DMV
- Vehicle Registrars
- Schools
- Post Office
- Social Security
- Library
- Daycare
- Clubs and Associations
- IRS -Veteran’s Association
PROFESSIONS:
- Doctors
- Lawyers
- Dentists
- Accountants
- Chiropractor
- Broker
- Medical Records
- PT Records
- Other Doctors or Professionals
- THE ACTUAL CLOSE: It is not necessary for you to be at close. You have the option of doing a mail in close, signing prior to closing, doing a “Power of Attorney�?, or coming to the close. The attorney can still go through all of the paper work with you by phone or you can attend the actual close. Either way, I will not give the go ahead for the attorney to close until the property has been thoroughly inspected on the day of the close! Usually the attorney will let you know an exact amount (Closing Costs), a day or 2 before close. In some cases, it is necessary to wire the attorney money; you cannot use a personal check at close, only wired funds or a certified check. The attorney’s will go over this process completely with you prior to close.
- HOME WARRANTY’S Sometimes a home or villa will come with have a home warranty that is included in the sale of the home or villa. Other times, you may want to purchase a home warranty, most insurance companies will have information on these warranties, please ask me, if they do not.
- FURNITURE: Since we are in a vacation-oriented community, you may need to furnish your property right away or upgrade the furnishings currently in your new home. I have lists of companies and lists of what a typical rental ready property really means! Just let me know and I can get you all of this information.
- VENDORS AND CONTACTS: You will need to make a checklist depending on what kind of property you are purchasing and what it will be used for to determine what vendors you will need. I have lists of reputable people from Locksmiths (Changing the locks) to Dog Walkers, just ask me!!! This is the kind of FULL SERVICE you can expect from me…even years beyond the sale.
- YOUR NEW HOME: Now you are officially a homeowner on Hilton Head Island, SC USA. Congratulations!!! You did it! Make a checklist of all of the things you need to do or of the people you need to see for a service (Bug people, contractors, lawn care, etc.). Again, I have a list on everyone, just ask me………anytime!
It’s always nice to have measurements taken, furniture possibilities arranged, or estimate from contractors taken before you close, it will save you time and money to do this ahead of time, especially if time becomes an issue of great importance. I can help you even if you are not in town; it’s what I do!!! Also, please let me know if you would like me to arrange rental or management companies to view your home or villa, to give you an idea on what to expect or simply to find out who you would like to use!