It's A Great Time to Buy Charleston Real Estate!!! (short sales, foreclosures)

[rubber_factory]

fair market value definition | Dictionary.com

I agree, and I would add that it isn't a matter of opinion.

I saw a sign near my house the other day that said, "SELLING WAY UNDER MARKET VALUE!"

I wonder if they don't understand what "Market Value" means, or if they do understand and are trying to trick someone?

[Maryjane55us]

just to give some perspective from the homebuilding side of things...the houses that we used to sell for 210k are now priced at 175/180k. we are literally building them for sport right now, there is virtually no profit and most companies are doing just this to weather the storm and once the opportunity presents itself slowly push margins back up they will do so. .... you can actually buy a pretty nice 4 br home for say 175k

I'm glad to hear from someone in the building industry participating here on the forum also. We do need your input. So here's my questions:

You say there are houses that used to sell for 210K?? And there is a brand new 4 BR house for 175k in the Charleston area ?! You've got to be kidding.. I must be looking in the wrong MLS because all I see under 200k have been condos or old fixer-uppers. Please.. send me a link to these new construction properties, because I'm dying of curiosity.

We'd like to build a 3br 2000sf for 350k, but can either afford the house or the land, not both. Maybe I'm too picky.

We have yet to find decent land under 100K.. or even in the mid 100's! I'd simply like a few nice shade trees (stick pines trees don't count) and to not have to look into someone's backyard. Country would be much nicer than crowded subdivisions.

As far as construction materials not dropping, I keep reading that lumber prices have fallen. And according to the Lowes flyers in the paper, lots of building materials are "on sale" 15-30% off. And you would think with all the unemployment in the building industry, labor would be very negotiable.

Someone mentioned that the actual housing prices weren't falling, but the land was. Builders must have some good connections that us lookers don't.

[The CMR]

"Someone mentioned that the actual housing prices weren't falling, but the land was."

That was me. I was referring mainly to new homes. Actually if the builders are cutting down their labor costs to zero margin and bldg material prices are dropping then the cost per square foot and land may be dropping at the same time. Every home may be different.

When you appraise an older home you typically have to depreciate the home a certain % due to wear and tear. This is done on the cost approach of an appraisal. The cost approach should fall in line with sales comparison approach on an appraisal in order to determine "estimated market value."

HOWEVER, at the end of the day the market (Buyer and Seller) always determine the actual price like someone cleverly stated in a previous post.

[jesposito]

Originally Posted by Maryjane55us

I'm glad to hear from someone in the building industry participating here on the forum also. We do need your input. So here's my questions:

You say there are houses that used to sell for 210K?? And there is a brand new 4 BR house for 175k in the Charleston area ?! You've got to be kidding.. I must be looking in the wrong MLS because all I see under 200k have been condos or old fixer-uppers. Please.. send me a link to these new construction properties, because I'm dying of curiosity.

We'd like to build a 3br 2000sf for 350k, but can either afford the house or the land, not both. Maybe I'm too picky.

We have yet to find decent land under 100K.. or even in the mid 100's! I'd simply like a few nice shade trees (stick pines trees don't count) and to not have to look into someone's backyard. Country would be much nicer than crowded subdivisions.

As far as construction materials not dropping, I keep reading that lumber prices have fallen. And according to the Lowes flyers in the paper, lots of building materials are "on sale" 15-30% off. And you would think with all the unemployment in the building industry, labor would be very negotiable.

Someone mentioned that the actual housing prices weren't falling, but the land was. Builders must have some good connections that us lookers don't.

what can make all the difference in the world when building a home is the finish details (cabinets, flooring, bathroom fixtures, tops, trim levels, etc.). All in all the same guys that frame houses in Ion frame houses for tract builders in Goose Creek and Summerville...the electricians are the same, the drywall contractors are the same, the HVAC guys are the same. When you custom build the contactors bid that one specific job and there is naturally more cost associated with a bid on one house vs a builder who bids the house and says "I plan to build 8 of these this year in each of the 6 communities we have going". Now the subcontractor has the ability to cut his margin because he he knows that once his guys have done a couple of the same house they will know exactly how the house comes together and he can save time, labor, and material doing it over and over again as well as make up lost margin w/volume. Builders who are going to deliver 150 houses a year naturally have a little more negotiating power than the guys that do 5. in regards to locations, yes a 4 br 175k home will certainly be in a community but don't most people like being in a community anyways? maybe that's not your deal. There are some builders that should certainly be able to deliver you a home at 115/sq ft for the home, and you could spend 100k on a lot somewhere...again the big question is what are your specifics? do you want Viking appliances or can you do GE? do you want granite in the bathrooms or can you do a cultered marble?...I'm floored that you can't find a lot that you like for 100-120k...where are you looking?

[OleTomCat]

She isn't looking for a lot, she wants some acreage. For horses...

I recommended Awendaw, but I think that is either to high or to far.

[Maryjane55us]

what can make all the difference in the world when building a home is the finish details (cabinets, flooring, bathroom fixtures, tops, trim levels, etc.). All in all the same guys that frame houses in Ion frame houses for tract builders in Goose Creek and Summerville...the electricians are the same, the drywall contractors are the same, the HVAC guys are the same. When you custom build the contactors bid that one specific job and there is naturally more cost associated with a bid on one house vs a builder who bids the house and says "I plan to build 8 of these this year in each of the 6 communities we have going". Now the subcontractor has the ability to cut his margin because he he knows that once his guys have done a couple of the same house they will know exactly how the house comes together and he can save time, labor, and material doing it over and over again as well as make up lost margin w/volume. Builders who are going to deliver 150 houses a year naturally have a little more negotiating power than the guys that do 5. in regards to locations, yes a 4 br 175k home will certainly be in a community but don't most people like being in a community anyways? maybe that's not your deal. There are some builders that should certainly be able to deliver you a home at 115/sq ft for the home, and you could spend 100k on a lot somewhere...again the big question is what are your specifics? do you want Viking appliances or can you do GE? do you want granite in the bathrooms or can you do a cultered marble?...I'm floored that you can't find a lot that you like for 100-120k...where are you looking?

Thanks, Jesposito. That is very helpful and very educating. It explains why one of a kind houses cost more even if you go with GE and mid level finishes. Last I'd heard, the average cost was $150 -200.. pricing the house at least 300k.

And, Ole Tom Cat, I'm not the one who has horses, altho I do live in an equestrian neighborhood on wooded acreage.. something like Pepper Plantation but much cheaper. P/P would be ideal if they had less expensive smaller acreage lots. Private, shady, quiet.. for sedate old folks who like to rock on the porch and listen to hoot owls.

Btw.. the house/land of my dreams is that newly built one in Rockville with the huge oak trees.. priced at 750K.

But I agree that most people, esp with children prefer a community with lots of activity. My ideal would be if P/P was taken over by Del Webb and offered 3/4 acre lots, and instead of horse barns and riding rings, had a social center.. with duplicate bridge games. I'd always hoped to marry to a developer..

Too picky, huh?

[OleTomCat]

Oh ok, thought you wanted acerage, most have been someone else...

[Xdeth]

I am excited to be moving to Charleston soon based mostly on the home values I have been finding. I'm looking for something modest in the 300's and there is a lot for your money compared to the Northeast meglasubdivision I thouhgt I was going to just a few weeks ago.

Is all of Mt Pleasant a flood zone? I am leaning towards Summerville or a bit North to avoid having to worry about flooding potential.

[DJShymansky]

Yes, all of Mt. Pleasant and the rest of Charleston is in one type of flood zone or another. Many areas though don't require flood insurance, based on the home's location/elevation, especially as you move farther inland towards Summerville.

[The CMR]

Originally Posted by Xdeth

I am excited to be moving to Charleston soon based mostly on the home values I have been finding. I'm looking for something modest in the 300's and there is a lot for your money compared to the Northeast meglasubdivision I thouhgt I was going to just a few weeks ago.

Is all of Mt Pleasant a flood zone? I am leaning towards Summerville or a bit North to avoid having to worry about flooding potential.

You should be excited. Charleston is the SHIZZLE!!!