Keller Williams Columbia South Carolina Broker Needs Your Help

One of the goals of ThePattersonFiles and my website ( http://www.davidpatterson.net/ ) is to provide information that is important to my readers (YES…That would be you!)

There are many real estate websites that are not consumer-centric. I have never had a desire to be part of the crowd. I want to be different and one of your valued assets.

Hence, I need your help! Do you have a real estate question that needs an answer? Are you looking for more information on a real estate related topic? Do you have an interested in what it takes for a real estate agent to be successful?

What information would you like to find on my websites and blogs?

At this time, you can find……

1. Columbia SC Homes for Sale
2. The Value of your Current Home
3. South Carolina Real Estate Agency Laws – Your Real Estate Rights!
4. Foreclosure Listings
5. Advice for First Time Home Buyers
6. A Partial List of Neighborhoods with Restrictive Covenants
7. Home Selling Tips
8. Actual Home Buying Experiences
9. Mortgage Resources
10. Real Estate Tax Laws

Please help me with providing you with a great resource for your real estate needs!

CLICK HERE to share your ideas! Your help is greatly appreciated!!

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

For those of you that might not have accessed cable television over the last decade, House Hunters has arguably become one of the most popular shows on HGTV. The premise of this show is simple. Home buyers meet with a real estate agent and visit three homes with a commercial or two mixed through their shopping search.

By the time the cameras have returned from the last commercial, the home buyers have picked a home, made an offer, closed escrow on the purchase, moved and remodeled the home.

I’ve had people say to me……………That is so unrealistic! Do most home buyers know that House Hunters is a television show?

Yes. House Hunters is a television show!

However, it is possible to have a similar experience by taking the following steps:

1. Hire a real estate professional that can put the F.A.T. in your home buying experience.
2. With the help of your real estate professional, hire a reputable mortgage professional.
3. Spend time with your real estate professional to conduct a Home Buyer Interview.
4. Allow the real estate professional educate you about the Home Buying Process.

In my opinion, you should take these four steps BEFORE GETTING INTO THE CAR AND LOOKING AT HOMES.

These steps will save you time, frustration and $4 a gallon of wasted gasoline.

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.

Prequalification v. Preapproval: What's The Difference?

Guest Contribution from Michael Eastham, CPA
Certified Residential Mortgage Specialist &
Chief Executive Officer - Global Lending Group
Phone: 407-388-1036 (ext. 140) / meastham@glgi.net
140 N. Westmonte Dr #204 - Altamonte Springs, FL 32714

In the world of real estate transactions, professionals and purchasers sometimes use the words “prequalification” and “preapproval” interchangeably. The problem is they mean two totally different things. If you are using the wrong word in place of the correct word, you may find yourself in the throes of a very sticky situation.

Let me paint the picture for you: you are the potential buyer of a home, ready to make an offer on a house. Your realtor tells you that you need to get a “pre-qual” letter from your lender to submit with the contract. You receive the letter and give it to your realtor. The letter is then submitted with the contract and accepted by the seller. Great news! Or is it? The contract states that you must close within 30 days and you could not be more excited. Now, let’s fast-forward to day 28. Your lender calls you to let you know that your loan was declined.

How could something like that happen, you ask? You were pre-qualified! Well, this is one of those times when you must understand what the definition of “is” is. There are significant differences between being prequalified and being preapproved. Knowing what they are beforehand can determine whether you actually close on the transaction or not.

Having a pre-qualification simply means that you have had a conversation with a lender and based on the information you have submitted, (and assuming all of it is true and that you can document it) the lender believes that you will get the loan. This is a very simple thing to do. In a 10-minute conversation, I can determine a borrower’s debt-to-income ratio, credit score, amount of available assets, and what loan to value is needed for the borrower. However, one thing that is not included in this process is the documentation needed to support the loan request. Without this information, the lender runs the risk that any one of a hundred variables could shoot down the loan and it could be declined.

When you get preapproved, it means that your lender has not only reviewed your loan information as in the prequalification stage, but has also taken that loan through several other steps to insure loan commitment. All of the pertinent documentation to support the loan request has been collected and reviewed by the lender. This is called the credit underwriting stage, and it is critical to make sure that the borrower is credit approved. W-2’s, pay stubs and tax returns are reviewed in order to verify income. Employment is verified. Funds necessary for closing and post closing reserves are sourced using bank statements, investment statements, and retirement assets. The credit report is carefully reviewed and prior mortgage history is verified. All compensating factors are considered as the underwriter assures the lender that the documentation supports the loan request in accordance with the guidelines for the requested loan program.

Once the credit underwriting is completed, we are able to issue the “preapproval” letter that states the loan is approved, based on the credit worthiness of the borrower. The only unknown factors are those relating to the property. That is why this credit approval will always be subject to the borrower providing a fully executed contract and a satisfactory appraisal for the subject property. This is a significant point, because when buyers have been preapproved, they are for all intents and purposes, the equivalent of a cash buyer. They are typically in a much better negotiating position, and are much more likely to have their contract accepted by the seller.

If you are serious about getting the house you want, you must understand the difference between these two terms. It is important to have that “preapproval” when you submit the contract. That way you can submit your offer with confidence, knowing that the loan is ready to go as soon as you get the contract and the appraisal. Of course this takes a little more time, but that is where a little planning comes in. If you get started just a few weeks before you plan to go house hunting, I guarantee it will save an enormous amount of time, pressure, and anxiety on everybody’s part when you do find that “home of your dreams.”

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

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

If you visit the online resource provided by Merriam-Webster, you will find the following...

chicken–and–egg (adj.): of, relating to, or being a cause-and-effect dilemma

Etymology: from the proverbial question “which came first, the chicken or the egg?”

Date: 1959


You've decided to buy a home! Congratulations!

Let me guess......You have a question.

What is the correct first step in purchasing a home?
Actually...this question is probably one of the first questions asked by most home buyers.

Should you call a bank or mortgage company and obtain a preapproval or should you call a REALTOR® and discuss current market conditions? The answer to this "chicken or egg" argument will set the stage for a smooth or rocky home buying experience.

In my opinion, your first hire should be the professional that can put the F.A.T. in your home buying experience. What's F.A.T.? You are full of good questions.

F.A.T. is an acronym that represents the key qualities of a real estate sales professional. A real estate sales professional should be a great Facilitator, Advocate and Taskmaster.


If you do not hire a REALTOR® with these traits early in the process, you might be on the road to wasting scores of hours, gallons of gasoline and thousands of unnecessary dollars during the home buying process.

Why do you need a facilitator? Purchasing a home requires involvement from several professionals from different industries. You will encounter home inspectors, termite and heating & air specialists, attorneys, homeowners and other real estate agents. All of these parties have a hand in a real estate transaction. You need to find someone that can facilitate the involvement of these aforementioned professionals. Most mortgage loan officers do not have this in their job description.

However, being a facilitator is not enough. While facilitating these professionals, you want someone to work on your behalf.......An Advocate!

South Carolina Agency Law and the REALTOR® Code of Ethics charges REALTORS® to put your interests ahead of others at all times!

Reputable lenders will follow those principles. However, how do you know that home inspectors and other real estate agents are putting your interest ahead of theirs? That's right! You don't!

To guarantee having an advocate that has a fiduciary duty to work in your best interest, you should enter into a SIGNED AGENCY AGREEMENT with a REALTOR®.

Thirdly....You must have a Taskmaster that has years of experience in working as a facilitator and an advocate.

While doing some research, I came across a Marvel Universe fictional character named Taskmaster. Taskmaster possessed an arsenal of weapons and was a trainer of super villain henchmen. He has the ability to masterfully mimic the physical movements of anyone he witnesses.





Even though Taskmaster was a villain in the Marvel Universe, a good REALTOR® should possess and use their powers to slay the pitfalls (villain) that can challenge your home buying process. Without those traits, you home buying experiences could be full of frustration and disappointment.


In conclusion, an egg mostly brings forth only ONE CHICKEN. However, a chicken can look over many eggs. Do you want to start the process with someone that can represent only one egg in the home buying process or should you start with the person that oversees all the eggs?

The choice is yours! However, my advice would be to hire a chicken with super powers that can put the F.A.T. into your home buying experience.