First Time Home Buyers! Buying NOW Has Advantages!

Yes, Virginia! If you are ABLE, READY and WILLING.....

NOW....is a good time to make a SMART, GREAT purchase for your first home.

Don't be deceived by the NATIONAL MARKET! All real estate is LOCAL!

Would you believe that home values in metropolitan Columbia are STABLE?


Yes, Virginia! The real estate sky is not falling in our area. What does that mean?

If you wait for prices and interest rates to drop......THEY MIGHT NOT!



Higher Interest Rates+Higher Prices+Limited Financing=REDUCTION!

A reduction in your ability to afford your first home!

Plus, there are TWO additional tax benefits to purchasing a home.....NOW!


1. Do you remember the Tax Relief and Health Care Act of 2006?

This signed legislation will allow 2008 and 2009 homebuyers to deduct premiums paid for mortgage insurance - which typically is required when homebuyers purchase a home with less than a 20% down payment.

This new insurance premium deduction will only apply to mortgage insurance contracts issued in 2008 and 2009 and is only available to taxpayers whose adjusted gross income does not exceed $110,000 ($55,000 for married taxpayers filing separately).

For more information about H.R. 6111 (look in Act 419-Code 163-6050H) , contact your CPA or tax attorney.


2. Have you heard about Housing Stimulus Bill (H.R. 3221)?

As a first-time home buyer, this Congressional Act could give you a $7,500 tax credit for your residential purchase between NOW and June 30, 2009.

CLICK HERE for more information about H.R. 3221.

If you are ready for your FREE, NO OBLIGATION First-Time Home Buyer Assessment... please feel free to give David Patterson a call at (803) 772-5858 or email David at blogger@davidpatterson.net

Turtle Creek - Homes for Sale in Northeast Columbia SC

Turtle Creek is one of the few all-brick communities in Columbia real estate that is priced under $185,000. This community is within five minutes of the Village at Sandhill and Summit Parkway Middle School.




-- CLICK HERE TO SEARCH TURTLE CREEK HOMES FOR SALE --

Turtle Creek offers well landscaped sidewalks and walking trails with homes that sit on lots ranging from 1/4 to 3/4 acres.

This featured home has bamboo flooring, granite countertops and upgraded lighting. If you like homes that offer plenty of natural light and minimum maintenance, then Turtle Creek has your next home.

If you like reading this type of information, SUBSCRIBE to this blog.

Columbia SC Real Estate Agency Laws – Agency Relationships

This is Part One of a past series of posts that will attempt to perform one of my legal obligations to you. Today…let’s talk about real estate laws and how they impact you.

The South Carolina Real Estate License Law requires real estate licensees (agents) to provide you with a meaningful explanation of Agency Relationships offered by their Company.

When encountering any licensee (whether you meet them at an Open House or a New Construction site such as Lake Carolina) or before you begin to work with a real estate licensee, the licensee should give you an Agency Disclosure Brochure.

It is important for you to know the difference between a Broker-in-Charge and associated licensees. This brochure begins the process of providing a meaningful explanation of agency.

The Broker-in-Charge is the person in charge of a real estate Company. Associated licensees may work only through a Broker-in-Charge. In other words, when you choose to work with any real estate licensee, your business relationship is legally with the Company and not with the associated licensee.

A real estate Company and its associated licensees can provide buyers and sellers valuable real estate services, whether in the form of basic customer services, or through client-level agency representation.

THERE IS A DIFFERENCE BETWEEEN BEING A CUSTOMER & A CLIENT!

In Part Two of this series, I’ll discuss that difference and why you should establish your business relationship with a licensee EARLY in the process.

If you like reading this type of information, SUBSCRIBE to this blog.

Keller Williams Columbia Broker Advises First Time Home Buyers

I am in the final stages of completing an series of articles that will discuss the different phases of buying homes for sale in Columbia SC . This is an attempt to educate first time home buyers about the critical steps in a successful home buying experience. Topics include:

•1. The Chicken or The Egg - Who Should First Time Homebuyers Hire First?

•2. Prequalification v. Preapproval: What's The Difference?

•3. First Time Home Buyer Interviews - Ricki Lake Would Be Proud

•4. MLS! - What Does Soccer Have to Do with Buying a Home?

•5. You Do Know That House Hunters is a Television Show... Don't You?

•6. You Found a House.......How Do You Make It Your Home?

•7. The Yogi Berra Saying That Offers Advice to First Time Home Buyers

If you would like for The Patterson Files to address any other home buying topic, please feel free to email the topic to thepattersonfiles@davidpatterson.net

The Most Common Question Asked by First Time Home Buyers

“What is the first step in the process of purchasing a home?” This is the most common question asked of me by first time home buyers. My answer is always the same. “You need to hire a team of professionals!”

Have you seen the commercial with a man sitting at his kitchen table while on the phone with his doctor? The doctor starts by saying………

"Hey Bob…… have you disinfected the area?...Good....Now make a three-inch incision between the fourth and fifth abdominal muscles." The worried-looking man on the other end of the phone stares at the knife and says………."Shouldn't you be doing this?"

"It's really straightforward. Listen, I gotta go. I'll talk to you later." The doctor hangs up the telephone and leaves this poor guy to his own devises. Most of you would say….this is an unrealistic commercial. No one would make an attempt to perform that act.

Literally, I would agree with that statement. However, let’s dig a little deeper into that state of mind.

If we had termites or some other serious infestation, wouldn't we hire a pest company to treat the home? If we had a plumbing leak behind our clothes washer that caused water to seep into the walls (personal experience), wouldn’t we hire a plumber?

Not only would we hire these professionals. We’d even agree to pay their fee.

Consider this. There are several first time homebuyers shopping for homes while sitting at their computer with a knife in their hands.

Purchasing a home without hiring a team of professionals could cost you thousands of dollars in repairs, mortgage interest, and home equity. There are several aspects to buying a home.

If you are a first time homebuyer, YOU SHOULD NOT BE WORKING ALONE!

If you like reading this type of information, SUBSCRIBE to this blog.

MLS! - What Does Soccer Have to Do with Buying a Home?

While doing some spring cleaning in my office for an upcoming event (that will prompt me to post a press release in the future…….stay tuned), I received an unexpected “walk-in” buyer.

“Mr. Patterson…I drove here from Boston and saw your ad in one of the local real estate magazines. To be closer to my family in Eastover, I am here to buy a home and 40 acres of land. Can you help?”

You all know my answer to that question!

I lead the New Englander to my conference room and began the Buyer Interview.
After some initial chit-chat, I asked……..What is your goal in this real estate transaction?

“I’d like to buy a big home with little money!”

“Well…’Mr. New Englander’, let’s scan the MLS database for homes that meet your criteria.”

“Mr. Patterson…..MLS! What Does Soccer Have to Do with Buying a Home?

“Mr. New Englander”……..I don’t understand.

“We have a soccer team in New England called The Revolution. They play in the MLS!”

No. No. No………MLS stands for the Multiple Listing Service.

Multiple Listing Service (MLS) is a database which allows real estate brokers representing sellers to share information about properties with other real estate brokers who may represent potential buyers.

By conducting an initial buyer interview with MLS at my fingertips, I bring more efficiency in the home searches of first time home buyers or those relocating to Columbia and Irmo, SC.

When meeting with a Buyer Agent for the first time, you should already have answers to these Top 10 Basic Questions that will be asked during a search of the MLS database………..

1. Have you been pre-approved for a mortgage? What is your desired monthly payment?

2. What area of metropolitan Columbia, SC interests you? (Northeast Columbia, Irmo, West Columbia, Lexington, Blythewood, etc.)

3. Are school districts important to you? Do you have a preferred school district?

4. Are you against being in a neighborhood with restrictive covenants?
5. Do you have a preference between an older home and a newer home?

6. How many bedrooms and bathrooms?
7. Do you prefer a ranch-style or two-story home?
8. Do you require a fireplace, garage or hardwood floors?
9. Do you have a preference between brick or vinyl exterior?
10. Do you have a preference between homes on crawl spaces or slab foundations?

By answering these questions before accessing MLS, you could save yourself $3.20+/gallon in gasoline costs and possibly put yourself on the fast track to finding your next home.

Looking for Lake Carolina Homes for Sale? - Visit This Site!!

CLICK HERE TO SEARCH HOMES FOR SALE IN LAKE CAROLINA!!

If you are looking for a home priced in the $180,000 - $265,000 range, Berkeley Hall in Lake Carolina could be worth a look. Berkeley Hall is within walking distance of Lake Carolina Elementary, Kelly Mill Middle School and the NEW Northeast YMCA.

Here is one of the Berkeley Hall homes that's listed by my office.............


Our Featured Listing is Four Bedrooms, 2.5 Bathrooms and 2725 Square Feet (priced at $251,200). This home is located on a Cul-de-Sac lot with hardwoods on the lower interior.


The Master Suite has a Trey Ceiling and Sitting Area. The home has fresh interior paint, a screened porch, an automatic sprinkler system and a finished garage.

Identifying the perfect Lake Carolina Home is like looking for a needle in a haystack. If you'd
like help with searching for "the needle", call the HAY line at (803) HAY-9010.


If you like reading this type of information, SUBSCRIBE to this blog.

The Second Most Common Question of First Time Home Buyers

“Is the current market idea for purchasing a home?”

In the current climate of daily foreclosure stories and “experts” using words and phrases like “recession” and “bursting bubbles”, I am going to answer this question and issue my perception of the current real estate market in Northeast Columbia, South Carolina.

We all have goals and dreams for our lives. Some of the items on my “Bucket List” or “Goddard’s List” include visiting all 50 states in The Union, competing on a game show and becoming one of the most trusted real estate professionals in South Carolina.

In my opinion...Anytime is a great time to realize your dream!

If you are looking to own a home and experience the “American Dream” of home ownership, REMEMBER…….Anytime is a great time to realize your dream!

Would you like some facts that support my answer?

In Northeast Columbia during 2007, the number of HOMES SOLD did decrease by about 10% in comparison to 2006 numbers. HOWEVER………….

While those numbers decreased, the average sales price INCREASED by about 4.69%. What does that mean to you?

If you were thinking about buying a home in 2007 and decided that the “television and news experts” were right about your waiting to purchase a home, you LOSS about $8400 in equity through natural appreciation.

Do you need some more convincing? Nibble on these numbers…….

These are the raw Consolidated MLS numbers for Northeast Columbia Zip Codes:
(Zip Codes: 29223 -- 29229 -- 29016)

Year----------Closed Sales----------Average Sales Price
2007__________ 2700_______________ $192,714
2006__________ 3091_______________ $184,072
2005__________ 2929_______________ $168,566
2004__________ 2517_______________ $169,245
2003__________ 2129_______________ $163,100

What do these numbers say?

If you had bought your home in 2003, you could have gained about $30,000 in home equity. Here’s a question for you?

How hard would it be for you to save $30,000 within four years?

In summary, if you are buying a HOME (and not primarily for investment purposes) and you are working with a team of real estate professionals…. Anytime is a great time to realize your dream!

For the most common first time home buyer question, visit my Most Common Question post.

If you like reading this type of information, SUBSCRIBE to this blog.

First Time Home Buyers Share Their Home Buying Experience

Rebecca Levinson is a Corporate Blogger and Community Leader with Connect2Agent in Lake Geneva, Wisconsin. She has been nice enough to honor me with being a Guest Contributor of The Patterson Files.

Earlier this week, Rebecca sent me an email to announce the launch of Tales from the Connect2Agent Crib. “Tales” will be a monthly feature that showcases feedback from Connect2Agent employees on relevant real estate topics.

Quoting Rebecca… ”Homeownership is one of the most important goals in life for many people. Even though a home purchase is a business purchase, it is also a very personal decision.”

Rebecca asked some employees of Connect2Agent to tell her about their first time home buyer experience. The responses were enlightening. Here's just a sample......

"One thing I would have done differently is NOT used a family friend as our buyer's agent. I didn't feel like I could voice my concerns or displeasure at all, so as to not "rock the boat" with my parents' friendship with this person

Thanks Rebecca for sharing these experiences with my readers. You are one of the best!

Click Here for more of the Featured Responses

Click Here for Part Two

Click Here for Part 3 (The responses couldn't fit into one installment....ENJOY!)

First Time Home Buyers Should Know Their Buying Power

One of the biggest frustrations for both parties (buyers and sellers) in a real estate transaction occurs when home buyers are not properly approved and thoroughly educated about their mortgage.

For example, a buyer made a full price offer on a $160,000 home that was accepted by the seller. The lender had pre-approved the buyer for the loan. However, the lender had not communicated the monthly payment on a $160,000 mortgage to the buyer.

When receiving that piece of information about three weeks after entering into the contract, the buyer was floored and nervous about making the purchase.

Needless to say, the buyer did not complete the purchase. Understandably, the seller was less than ecstatic about this turn of events.

Before making an offer on a home, always obtain a copy of the Good Faith Estimate that is required to be given to you by your lender within three days after completing a mortgage application.

What did you say? "You don’t have a lender."

"You haven't applied for a home mortgage by completing a Uniform Residential Loan Application (Fannie Mae Form 1003)."

"You didn’t receive a Good Faith Estimate before shopping for a home."

Do any of the previous statements read like Greek to you (and you don’t speak Greek)?

If any of these statements are true for your situation, you are not properly prepared to purchase a home. You might want to hire a team of professionals that will properly educate and guide you successfully through the process.

If you like reading this type of information,

SUBSCRIBE to this blog.

Click Here for the HOMEPAGE.

Here's A Great Television Show for First Time Home Buyers

First time home buyers are always looking for help in understanding the home buying process. Wouldn't be nice to have a television show that represents the real estate transaction in a realistic light? Well....TLC could have another hit show on their hands.

My First Home brings the lives of first time home buyers to the television screen. Unlike some shows that depict the real estate process as seeing only three homes, making an offer on one and getting it to closing without issue, My First Home offers a more detailed, realistic perspective of the first time home buying experience by filming first time home buyer disappointments, anxieties and successes.

From previewing homes to picking out the perfect house, to waiting through escrow, to the final exchange of keys, My First Home cameras will follow real estate novices through the highs and lows of buying a first home.

Please visit my blog and make comments after watching an episode of My First Home on TLC. I am really interested in hearing your comments

Click Here for Upcoming Episodes!

First Time Home Buyers Should Know About Agency Agreements

This is the final installment in my series on Columbia SC real estate agency laws.

Here's a summary of the past articles.......

Part One - Discussing agency relationships with real estate licensees (agents) and defining your business relationship with said agents.

Part Two - What's the difference between being a Customer and a Client?

Part Three - Why should all home buyers should hire a professional real estate agent?

Part Four - My fiduciary duties to you as a real estate consumer.

Part Five -What are the legal types of agency relationships in South Carolina?

Let's close this series by discussing agency agreements and summarizing your real estate representation choices.

When you choose client-level service, your written Agency Agreement or your agent should answer these questions:

• Can you work with other real estate Companies during the time of the Agreement?
• What will happen if you buy or sell on your own without the agent?
• When will your Agency Agreement expire?
• How will the real estate Company be paid for its services?
• Does the real estate Company represent both buyers and sellers as clients?
• What are the choices if two clients become involved in one transaction?
• What duties will the real estate Company continue to provide me after the transaction is completed?

If you plan to become a client of a real estate licensee (agent) and their real estate Company, the licensee should explain the agreement to you fully and should answer questions you may have about the agreement.

Remember, however, that until you enter into a representation agreement with the Company, you are considered a customer and the Company cannot be your advocate, cannot advise you on price or terms, and cannot keep your confidences.

IT'S YOUR CHOICE!!!

As a real estate consumer in South Carolina, it is your choice as to the type and nature of services you receive.

• You can choose to remain a customer and represent yourself while the Company represents the other party.
• You can choose to hire an agent and real estate Company for representation through a written agreement.
• If represented by the Company, you can decide whether to go forward under the shared services of dual agency or designated agency or to remain in single agency.

The choice of services belongs to you - the South Carolina real estate consumer.

If you ever have questions about Agency Relationships in Real Estate, please feel free to email me at blogger@davidpatterson.net

First Time Home Buyers Should Know About Agency Types

This is Part Five in my series on Columbia SC real estate agency laws.


In Part One, I expressed the importance of discussing agency relationships with real estate licensees (agents) and agreeing on your business relationship.

In Part Two, I wrote about the difference between being a Customer and a Client.

Part Three discussed the importance of some sellers and all home buyers becoming Clients.

Part Four stated my fiduciary duties to you as a real estate consumer.


This installment will discuss three types of Agency Relationships in South Carolina and how they impact you during the real estate sales process.


First, Let's discuss Single Agency. When a real estate Company and its associate licensee represents only one client in the same transaction (the seller or the buyer), the relationship between the Company and the seller/buyer is called Single Agency. Approximately 93% of my clients have entered into a Single Agency relationship with me. After reading the remaining portions of this post, you will understand the importance of that statement in reaching your real estate goals.



Let's turn our attention to the second type of agency.



Designated Agency came on the South Carolina real estate scene on January 1, 2005. In designated agency, a broker-in-charge (which is the personification of a real estate Company) may designate an individual associated licensee to act solely on behalf of each client. These designated agents have a duty to promote the best interest of their clients, including negotiating a price.


The broker-in-charge remains a disclosed dual agent (which will be address shortly) for both clients, and ensures the assigned agents fulfill their duties to their respective clients.



At the time you sign an agency agreement, you may be asked to acknowledge whether you would consider giving written consent allowing the Company to designate a representative for you and one for the other client in a designated agency.





For example....If I am representing you on the purchase of a home that is listed by my office colleague Lisa Davey, Lisa and I would be designated agents in that transaction and our broker-in-charge Margaret-Ann Ashburn would be a disclosed dual agent.

Disclosed Dual Agency exists when the real estate Company has two clients in one transaction – a seller client and a buyer client. At the time you sign an agency agreement, you may be asked to acknowledge whether you would consider giving written consent allowing the Company to represent both you and the other client in a disclosed dual agency relationship.

In a disclosed dual agency, the Company's representation duties are limited because a buyer and seller have recognized conflicts of interest. Both clients' interests are represented by the Company.



If I became a disclosed dual agent in any real estate transaction, I could not advocate on behalf of one client over the other, and cannot disclose confidential client information concerning the price negotiations, terms or factors motivating the buyer/client to buy or the seller/client to sell.



Hence....about 93% of my clients enter into Single or Desigated Agency agreement with me. It is important for my clients to have an advocate throughout the entire real estate sales process that is committed to your best interests.



In the final installment of this series, we'll discuss what to expect in an agency agreement.

First Time Home Buyers Need a Reputable Mortgage Officer

After reading a post from my Guest Contributor Jorge Merlos, I had an epiphany. I hadn’t given you a real life example of a reputable loan officer in the Columbia area. Hence….this post is dedicated to correcting my faux pas.

There is a lady that is unique in several ways and brings her artistic creativity to the world of mortgage lending.

Let me introduce you to Leah Avery with Bank of America. She can be reached at (803) 255-7759 or you can email her at LEAH.AVERY@BANKOFAMERICA.COM


Patterson Group has teamed with Leah and her fellow loan officers to market a full range of banking products and real estate services to Columbia, South Carolina real estate home buyers.

Leah is a Columbia native and a Graduate of The University of South Carolina. Yes…Clemson Fans. Leah will still get you a great mortgage for your home.

Leah will meet to discuss your financial needs and analyze your credit and financial information in preparation to obtain the best mortgage option for your purchase while minimizing closing costs.

Leah sends this list of items to post. These are some items needed to assist her efforts to help you.



*2 years W-2s...Most loan programs will require that the borrower provide only the previous year’s W-2 statement. However, some government programs will want to review two years. If you are self employed, you’ll need to bring your entire return for the previous 2 years.

*Bank Statements...Lenders require a 60 day history of all active bank accounts. It is with these documents that funds to close are verified, etc.

*Current pay stub...Pay stub(s) will assist the lender in verifying monthly gross income, as well as what the borrower has earned year to date. Most loan programs will require only one pay stub, while several government programs request pay stubs for the previous 30 days.

*Driver’s License...Your lender will verify your name, address, etc. with your driver’s license. Please be sure to take your license to closing as the attorney may also verify your information.

*Other Income...If your qualification is based on other forms of income including child support payments, bring documentation (cancelled checks, etc.) to prove verification of such income.

The process of applying for a mortgage can be the source of much anxiety.

If you plan to meet with any lender in the near future, these aforementioned documents should be with you upon arriving at the lender’s office. This will contribute to expediting approval of your mortgage application.



If you like reading this type of information, SUBSCRIBE to this blog.

Buying a New Home? Consider Its Future Resell Value NOW!

Guest Contribution from Darleen McCullen, Broker
Keller Williams Realty - Raleigh, North Carolina
Phone: 919.454.8864 / darleen@darleenmc.com




I was out for my morning walk earlier this week, and for the first time really "looked" at a set of new town homes near my residence. They're nice homes, but they back up to a busy street!
I thought to myself:





What were these people thinking when they purchased these town homes??





"Were they so anxious to live the American Dream that they weren't thinking about the location of the home?"

"Did the Builder give them incentives to purchase these homes that they didn't carefully consider the location - and the noise they'd hear inside the home at various times of the day?


DID THEY HAVE A REALTOR® to advise them?

WHAT COULD IT BE THAT WOULD CAUSE SOMEONE TO MAKE SUCH A POOR DECISION WHEN PURCHASING THEIR HOME?

When I am working with Buyers, especially first-time home buyers, I always advise... "Buy with the end in mind."

Buyers sometimes purchase what they consider to be the "perfect" home for them - without considering that they may wish to resell it in the future. The next buyer may not appreciate the fact that the home backs up to a busy street.

If trying to resell such a property, it may be necessary to cut the price to get rid of it. Home sellers, of course, want to protect their equity. So buying right in the first place will certainly help!

Yes, I believe there will eventually be a buyer for every property. But the question is "At what price will the buyer come?"

Fiduciary Duties are Important to First Time Home Buyers

This is Part 4 in my series on Columbia SC real estate agency laws.

In Part One, I expressed the importance of discussing agency relationships with real estate licensees (agents) and agreeing on your business relationship. In Part Two, I wrote about the difference between being a Customer and a Client. Part Three discussed the importance of some sellers and all home buyers becoming Clients.

This installment will discuss your expectations of a real estate agent and their fiduciary duties to you.

If you enter into a written agency agreement, as a Client, you can expect the real estate agent and her/his real estate Company to provide the following client-level services:

1. OBEDIENCE - If, and only if, you have SIGNED an agency agreement with an agent and/or real estate company, the agent is obligated to promptly and efficiently obey all of your LEGAL instructions. HOWEVER, you MUST HAVE a signed agreement to receive this level of client services.


2. LOYALTY - This fiduciary duty obligates a real estate agent to operate and negotiate in your best interest. Unless you have a SIGNED agency agreement with an agent or real estate company, the agent/real estate company is not required to be loyal to you. Therefore, when you walk on that new construction site and begin to sign documentation, remember this................

If you do not have representation with you, the on-site agent is not required to work for your best interest!


3. DISCLOSURE - An agent must disclose all known relevant and material information. For example, your agent should educate you about any factor that might affect the value or desirability of the home being considered for purchase.

By the way, NEVER ENTER INTO A CONTRACT without reviewing the Sellers Property Condition Disclosure Statement. If you are looking at new construction, this property will not be available to you for obvious reasons.

(NOTE -- Not all homes are required to have this document. For a list of exemptions, please feel free to email me at blogger@davidpatterson.net)


4. CONFIDENTIALITY - Unless you give consent, an agent is obligated to safeguard your personal information and your ability/willingness to pay more for a home than your offer price. However, if you do not have a signed agency agreement with a real estate agent or company.....

"ANYTHING YOU SAY CAN BE USED AGAINST YOU........" (Know Your Rights!)


5. ACCOUNTING - An agent and their real estate company is obligated to account for all money, deeds, documents and/or any other property given to them by you. For example, I have a client from Virginia that is moving to our area. In an effort for me to work on her behalf, she entrust me and Russell & Jeffcoat with $1250. This money is to be held in earnest and for payment of required inspections.

When hiring an agent, you must hire someone trustworthy! $1250 is not a trivial amount to being handing over to any Tom, Teresa, Dick, Denise, Harry or Harriet!


6. Reasonable Care and Skill - This is the most ignored duty by first time home buyers! Just because you have a friend or acquaintance that has their real estate license, that does not equate to possessing the skill necessary to fulfill this and the aforementioned fiduciary duties.

An agent is obligated to use reasonable care and diligence when representing you. You should expect a standard of care that only a COMPETENT real estate PROFESSIONAL can exhibit.

You should hire someone with superior skill and knowledge of the real estate market. No agent can possess superior skill AND knowledge by having closed only 1-4 transactions in their career.

You need to hire professionals such as an Accredited Buyer Representative, a Certified Residential Specialist or a real estate professional that has closed at least 25 transactions.

In my opinion, I would not want to be in the courtroom with an attorney that has never represented someone on trial for their freedom. That same mindset should be used in hiring a real estate agent.

In Part Five of this series, we will discuss Columbia SC Real Estate Types of Agency.

First Time Home Buyers Should Be Clients

This is Part 3 in my series on Columbia South Carolina real estate agency laws.

In Part One, I expressed the importance of discussing agency relationships with real estate licensees (agents) and agreeing on your business relationship. In Part Two, I wrote about the difference between being a Customer and a Client.

This installment will discuss the importance of some sellers and all home buyers becoming Clients. Clients receive more services from real estate licensees than customers.

If you are a first time home buyer, I STRONGLY ENCOURAGE YOU to hire an Accredited Buyer Representative (ABR). There are ABR's that will work with you for FREE*! How can you beat that?

A seller becomes a client of a real estate company by signing a formal listing agreement with the Company. For a seller to become a client, this agreement must be in writing and must clearly establish the terms of the agreement and the obligations of both the seller and the Company which becomes the agent for the seller.

A buyer becomes a client of a real estate Company by signing a formal buyer agency agreement with the Company. For a buyer to become a client, this agreement must be in writing and must clearly establish the terms of the agreement and the obligations of both the buyer and the Company which becomes the agent for the buyer.

Let me take a moment and place emphasis on the previous paragraph. If you do not have a signed agreement from a real estate company or associated licensee, they are not required to work in your best interests!

For example, if you visit a new construction site and meet the on-site agent, they are talking to you with the best interest of the builder/seller in mind. Why do I know this? It's their Fiduciary Responsibility to represent the best interests of the builder/seller.

If you give that on-site agent information about yourself without representation, that agent has a legal duty to share it with the builder/seller. What you don't know about how they use your information could hurt you!

There are several examples of current homeowners that would never buy a new home again without the help of an Accredited Buyer Representative or Certified Residential Specialist. The ABR and CRS Designee is trained on representing and negotiating for your best interests!

Let me say this again...............If you are looking to buy a home, GET REPRESENTATION! Bad things can happen to you that could take years and thousands of dollars to correct.


In Part Four, we will discuss the fiduciary services that Clients should receive from their licensee (agent) and the real estate Company.



If you like reading this type of information, SUBSCRIBE to this blog.

Attention 2007 Home Buyers! - Remember Your Tax Deduction

As the sun rises on this morning, I am reminded of the 2007 Federal Income Tax Filing Deadline that is three months from today.

One of my annual January mailings that keep me in touch with my clients is their HUD-1 Settlement Statment from the previous year. If my clients purchased a home in 2007, they will be receiving this mailing.

Later in this month, I will be including a little extra note in the annual mailing. Do you remember the Tax Relief and Health Care Act of 2006?

This signed legislation will allow 2007 homebuyers to deduct premiums paid for mortgage insurance - which typically is required when homebuyers purchase a home with less than a 20% down payment.

This new insurance premium deduction will only apply to mortgage insurance contracts issued in 2007 and is only available to taxpayers whose adjusted gross income does not exceed $110,000 ($55,000 for married taxpayers filing separately).

What did you say? ---- You didn't purchase a home in 2007. ---- NO PROBLEM!

Legislation has been passed extending the tax deduction for private mortgage insurance through 2010.

For more information about H.R. 6111 (look in Act 419-Code 163-6050H) , contact your CPA or tax attorney.

If you like reading this type of information, SUBSCRIBE to this blog.

Click Here for the HOMEPAGE.

You Are A Customer - Columbia SC Real Estate Agency Laws

This is Part Two in my series on Columbia South Carolina real estate agency laws.

In Part One, I expressed the importance of discussing agency relationships with real estate licensees (agents) and agreeing on your business relationship.

Unless you have signed an Agency Agreement with a real estate licensee, you are a Customer.

South Carolina license law defines customers as buyers or sellers who choose NOT to establish an agency relationship. The law requires real estate licensees to perform the following basic duties when dealing with any real estate buyer or seller as Customers:

• Present all offers in a timely manner
• Account for money or other property received on your behalf
• Provide an explanation of the scope of services to be provided
• Be fair and honest and provide accurate information
• Disclose "adverse material facts" about the property or the transaction which are within the licensee's knowledge

Unless or until you enter into a written agreement with a real estate Company for agency representation, you are considered a "Customer" and a real estate Company or a licensee will not act as your agent!

As a Customer, you should NOT expect the Company or its licensees to promote your best interest, or to keep your bargaining information confidential.

In Part Three of this series, I'll discuss the importance of establishing a client relationship with a licensee EARLY in the process.




If you like reading this type of information, SUBSCRIBE to this blog.

How to Determine Whether Your Loan Officer is Reputable

Guest Contribution from Jorge Merlos
Integrity Home Finance-Rancho Cucamonga, CA
Phone: 909.945.8621 / jmerlos@ihfinance.com



In slower markets, some loan officers may feel pressured to close deals that aren't in the homeowner's best interest. In order to avoid getting into difficult and financially compromised positions with their mortgages, borrowers are well advised to be acutely aware of the signs of a responsible loan officer when selecting a mortgage professional.



First, look for a Mortgage Planner whose values are focused on helping individuals to achieve their financial goals in both the fastest and the safest way possible. A reputable Mortgage Planner will show you the numbers associated with the proposed loan and provide you with concrete information that backs up his or her claims. Review all of the numbers. If they don't add up, ask for clarification. If your loan officer can't or won't answer your questions, move on--without the loan.


Secondly, a responsible Mortgage Planner will present you with financial information that goes beyond the point of the transaction, and will illustrate the total cost of the loan over time. If your loan officer is focusing only on rates and fees, you may be working with someone who's looking out for his or her own best interests, not yours.



Responsible Mortgage Planners will also tailor their strategies to fit your unique situation. In other words, they always take your personal financial goals into account. No one should try to place you into a loan without knowing the intricacies of your personal financial situation.


Finally, if your loan officer is advising you on issues other than mortgages, you could be working with someone who is compromising your best interests. Issues like investment rates of return and real estate appreciation aren't the areas of expertise for the vast majority of mortgage professionals and should be left to the professionals who have training and direct experience in those areas.


When seeking a loan officer, look for someone who specializes in mortgage planning, which is the process of evaluating a borrower's unique financial situation and advising the borrower on a loan that best suits his or her individual needs and goals. If your loan officer is trying to put you into a loan without evaluating how that loan will effect your entire financial situation--including debt management, tax benefits, investment goals and net worth--it's quite possible that you're only getting half of the picture.

The bottom line is that your mortgage representative should always be looking out for your best interests, regardless of market conditions.

David's Footnote: For more information on Columbia, South Carolina loan officers, CLICK HERE.

If you like reading this type of information, SUBSCRIBE to this blog.