The other problem with waiting is that the interest rates (which are currently at incredibly low levels) may move up....think about it a 10 percent market drop in prices is nullified by a 1% increase in interest rates on a 30 fixed loan...so waiting for another drop in prices and missing out on these fantastic rates may be something to consider.

Sean Ryan and Associates can help you target the best properties for your specific needs and then help you analyze the numbers to help you determine the " bottom range" and figure out the best plan to formulate and present an offer so you can take advantage of these historically low rates, and this incredible buyers market. Just call us at 843-842-4400 or visit us at www.LiveOnHHI.com.

I have repeated to friends, clients and associates, this "crazy" environment has lots of similarities to a time not that long ago......it was about two and half years ago when standing in line at the Coligny Bi-lo I overheard the checkout girl telling another associate she was buying an investment property.....I listened a bit more and found out she was buying into one of the apartment conversions where the developer was paying for the first year's condo fees....now looking back it is clear to see when everyone is talking about buying an "investment" property, that it was probably a good time to sell......now fast forward to October 10, 2008, everyone is talking about what they will have to sell to live.....I mean young and old together think it's the end of the world....the same level of "nuttiness" is showing itself at the opposite end of the spectrum......   now I'm not here to say the bell for the bottom is ringing, but I will be happy to bet anyone who reads this post a dinner  that in 15 months, the Hilton Head and Bluffton market will have recovered and be seeing some nice gains.... I know those who want instant gratification will think that's not soon enough, but like any other investment worth making, a long term perspective is what the smart money looks at.

Please feel free to call me, Sean Ryan, to take me up on the bet, or to find out more about some awesome opportunities. There are some fantastic deals, foreclosures, short sales, and just plain motivated sellers. Now more than ever it's important to have a Realtor who is looking out for your best interests, please let us work for you.

Definitely a period of adjustment, but an even greater period of opportunity. Prices in a number of different communities and sectors are back to 2005 levels......Of course a deal on a $3 million dollar oceanfront house may not be for everyone, but there are similar "deals" in nearly every category of property for sale, from homes to villas, from land to timeshares...some people have sadly gotten in over their heads, and they need to sell yesterday!

Sean Ryan and Associates continues to monitor the market and we constantly are updating our Hilton Head BEST BUY list ----just click on it to see some of the most motivated of sellers on the island.

Taking more of a real estate consulting position, we continue to help educate our buyer clients, so it's easy for them to see the best opportunities in the market based on their specific needs, budgets, and desires. We recently have helped clients purchase some of the best values in years in North Forest Beach, Windmill Harbour and Bluffton.

We've also been successful in representing sellers, by educating them to the current market conditions and working with them to price their properties appropriately, then promoting those well priced properties using the ultimate in marketing systems, and technological tools. In some instances we have represented 100 percent of the sales in the past 6 months in complexes like Ocean Breeze.

These are the best of times and the worst of times........anyone looking to buy or sell needs to choose agents wisely, find an agent who will represent your best interests whether you are fortunate enough to be a "liquid" buyer or a seller trying to move on from your current home.

If you are lucky, you will find the location of your dreams right away.  However many home buyers find themselves debating between several neighborhoods determining strengths and weaknesses for each. If on a budget or with children, it is often schools, commuting and finances that dictate location the most.

Here are some suggestions from the  Home Buying for Dummies Book.

1)  Prioritize your needs.
Buying a home on a budget means trade-offs.  For the neighborhood you dream of it may mean purchasing a smaller home.  You must decide what factors are most important to you!

2) Talk to people who live in the neighborhoods.      

People living, working and playing in the community will have the most insight into pros and cons.  Sean Ryan and Associates recommends taking a day or two to walk or at least drive around the neighborhood at a few different times of day.  See how far the closest beach access, gym, park, golf course and coffee shop is.

3) Get the Days-on-Market (DOM) statistics from our team.

DOM statistics show how long the average house takes to sell in an area.  (Ask a team member about this, if a property has been listed by two agents back to back it may only reflect the current listing's DOM.)  Quick sales often indicate strong buyer demand which should make you feel good about the neighborhood you are investing in.

4) Get help from a professional.

This is where we come in!  Home Buying for Dummies suggests speaking to a REALTOR, lender or appraiser to compare the upside potential of home values in each neighborhood.

In the end, only you know what neighborhood will be best for your family.  There are no guarantees with "up-and-coming" neighborhoods, but the more you put into your community the more you will get out of it.  If you have plenty of time to scope out the area before you buy maybe take a Sunday drive through some different parts of the island and surrounding mainland.  You may be surprised the many secret great finds around town. 

With the Loonies, among other currencies, being very strong against the US Dollar, it seems everywhere I look there are Canadian license plates in parking lots and on the street and many different accents in pubs, and restaurants.

 In fact just this week I had two Canadian "snowbird"clients looking for investment real estate, and  I helped a Scottish couple purchase their first vacation golf home in Hilton Head Plantation.

It's just a reminder that while our economy here in the states remains in a bit of "ups and downs" this beautiful Island we call home remains a desired destination for folks from all over the world, some with a lot more buying power than in the recent past.

As I like to point out to my investor clients, nothing on Hilton Head has fundamentally changed, and doesn't appear likely that it will. We are drive to destination for not only a huge part of The US, but eastern Canada as well, the Savannah International airport is only an hour away and yet another reason the foreign contingent can get excited about the island.

Mark my words, the market will rebound and those who can look past the "doom and gloom" news and really see how our market is different and fundamentally strong will see the opportunities that are prevalent in the market today.

Real estate sales for the Hilton Head area the month of October  totaled 145, that was down from a total of 203 sales in September. So far the total sales for November will be just about the same for November. December is usually one of our slower months, so we'll all look forward to a better 2008!

There are some fantastic opportunities out there and you can easily check them out by clicking here "Hilton Head Real estate Best Buys" or visit our site at www.LiveOnHHI.com.

We here at Sean Ryan and Associates wish everyone Happy, and Healthy Holidays!

If you've been thinking about boosting your home's value or just making your living space more comfortable, the ideas below can help your prioritize your list. So before you start knocking out walls and renovating your roofline, consider these ways to make a difference...cost-effectively!

First Things First. Buyers often decide whether to look at your house before they even get out of the car. They look for “Curb Appeal.” Washing windows, repainting trim, planting flowers, and fixing screen doors can make a big difference. For even more impact, you may want to consider replacing your siding or even adding a patio or deck. The added value for these bigger projects won't yield as high of a return on investment, but may help your house stand out..

Come On In...Make Yourself at Home. Making a cozy first impression is critical. To make sure your entryway invites people to come in--not turn away--try adding a fresh coat of paint to your foyer or a wicker chair and table outside the door. For even more impact, replace those old light fixtures and add a small rug.

Spruce Up That Old Bathroom. Remodeling an old bathroom can make a big impact. For very little money, you can add a new faucet to your sink, a new medicine cabinet on the wall, and even new paint or wallpaper. For a little more, you can update the bathtub, add a double sink, or re-tile the floor.

Even Better: Add a Second Bathroom. Perhaps no improvement makes a bigger impact on your family's comfort and your house's appeal than adding a second bathroom. The number of bathrooms is always a big sticking point for potential buyers, especially families with two or three children. Although adding a bathroom costs more than simply fixing up your old one, it also increases the value of your house more. Plus, having that second bathroom may help you sell your house faster than if it only has one bathroom...an important point to consider in today's market.

Make it Hot in the Kitchen. Renovating an outdated kitchen is practically a sure thing...as long as you don't splurge on extravagant items like hand-painted Italian tile or built-in espresso machines. Instead, focus on the basics: installing new flooring, adding a backsplash and a new coat of paint, re-facing existing cabinets, installing new countertops, and possibly installing new appliances. These go a long way to making a new buyer feel at home.

Remember, start small, work your way up, and always plan ahead. You don't want to get halfway into a renovation only to find that you have to update your entire electrical system or that you forgot to apply for a permit. So, check your local zoning codes before starting any remodeling project. With a little planning and prioritizing, you can make your house more comfortable and valuable with very little time...and money. Keep in mind that the recent drop in rates has spurred both buying and selling activity so whether you are a buyer or seller, home improvements can benefit you!

Briefly, the Internal Revenue Code Section 1031 permits the deferral of capital gains taxes on the sale of property held for investment or productive use in a trade or business..

This is a tool anyone looking to sell their current  property, and wanting to move up, down, or simply to another area should know about

In a very simplified example. If Joe bought his Courtside Villa located in South Forest Beach for $200,000 cash, and sells it for $400,000, he'd be looking at paying Capital Gains taxes(anywhere from 15% to 35% depending) on the $200,000.  If Joe decided he wanted to sell his Villa and buy the Oceanfront Villa we have listed at 133 Shorewood  and used the 1031 exchange and reinvested the $400,000 into a "like kind" property he would defer the payment of the capital gains taxes until a later time. If Joe didn't take my advice and sold his villa first, then went and purchased the Oceanfront villa, he would owe the IRS capital gains tax. Simply using this tool he saves himself at a minimum 15%, but possibly much much more.

This is not just for investment properties, all you Baby Boomers out there pay attention, there are even ways to use proceeds from the sale of a primary home towards an investment property thus defferring the payment of capital gains over the allowed $500,000 cap set for couples who sell their current home..... Of course we are not accountants, and we advise all of our clients to consult with their financial advisors or CPA's before proceeding...but those that spend the time to check this out are way ahead of the Average Joe investors out there.

For a more detailed FREE report on the 1031 Tax Deffered Exchange please call 1-800-817-7751 ext 2014.. or Call us 1-800-711-5053 ext 227 to discuss your situation.

Can You Afford A Second Home?

By Vivian Marino
Published: July 15, 2007

Owning just one home isn't enough for a growing number of families. From rustic cabins to beachfront manses, second homes accounted for 36% of all residential property sold in the U.S. last year, according to the National Association of Realtors. 

Fueling the market are recreation-minded baby boomers, awash in savings or equity from their primary homes. Some are buying with an eye toward retirement or as an investment, while others want a vacation getaway to enjoy now and pass on to their children later.

Finding a suitable place, however, can be daunting given the myriad options. And while prices are retreating-which could mean better deals this year-you'll still need to consider your budget if you have your heart set on being near the water. The median vacation home price is $200,000, while shorefront properties typically sell at a 50% premium and water-view homes at a 25% premium, real estate experts say.  
 
Evaluate Your Finances
Can you handle the mortgage (if there will be one) or the property taxes and other expenses? Will you need to rent it out to offset these costs (and then hire a property manager)?

"Make sure you can handle the carrying costs," says John T. Reed, publisher of the Real Estate Investor's Monthly newsletter, who prefers renting vacation homes to owning one himself.

Christine H. Karpinski, the author of Profit From Your Vacation Home Dream, suggests buying in areas where renting your home for income is not restricted. Just in case your finances change, "I always recommend buying where you can have that as a fallback," says Karpinski.
 
Pinpoint an Area
Are you more partial to hilltops than seashores, or do you covet a pied-à-terre under the city lights? If you can't decide on a locale, you might opt for more than one through time-shares or fractional ownerships in condo-hotels. They offer amenities without the housekeeping and maintenance responsibilities.

Most buyers prefer to travel within 200 miles of their primary residences, says David Hehman, president of EscapeHomes.com, a Web site with vacation-home listings. Most also prefer a place that is accessible to their sports or hobbies, like skiing or antiquing.
 
Look for "Hidden Gems"
The best deals may be found in lesser-known places on the periphery of the so-called hot spots.

"A lot of places are brand names, but just because they're more expensive doesn't mean they're the best investment," says Andrew Schiller, president of Location Inc., which runs the search site NeighborhoodScout.com.

"People have heard of Hilton Head-it's very famous and expensive-but just a town away is Bluffton, S.C., where home prices are 20% to 25% less. You want to find places that are in the best position to run up in value and, of course, that you love."

Watch Supply and Demand
Another way to increase value, or at least maintain it, is to own something in short supply. Areas that restrict building or that have little land left for development will often command the highest home prices, experts say.

When Christine Karpinski bought her first condo in Destin, Fla., in 1997, she chose the largest unit she could afford. "The demand for a three-bedroom was high, but supply was pretty low," she says.
 
Work With a Good Broker
While Internet sites allow buyers to browse and compare regionally and nationally, local real estate agents can pinpoint specific properties based on desired home type, price range and amenities.

"You may not always know what you want, but a really good agent could extract that from you," says David Hehman, who also suggests talking to local home owners about an area and spending some time there yourself.
 
Shop Around For Loans
Local lenders might offer better deals than national institutions. Oftentimes, though, lenders will charge a higher interest rate or require a bigger down payment for a second home. "When you're not occupying it as your primary residence, lenders are going to be a bit more cautious," says Stuart Hoffman, chief economist at the PNC Financial Services Group in Pittsburgh.
Christine Karpinski warns buyers to be wary of adjustable-rate mortgages with low "teaser" rates. You may be able to afford the initial payments, but not after rates rise.

Consider Taxes
You usually can deduct the interest and taxes on a second home. If you use the home for less than 15 days a year and rent it out the rest of the time, you must report all income, though you also may claim deductions for advertising, maintenance, depreciation and other expenses. In some cases, you even can claim a loss. But there are restrictions: If, for example, you live in the home part of the time, vacation there yourself or allow friends or relatives to use it at a bargain price, different rules apply to reporting rental income, and deductions usually are limited.

The word “correction” is a misnomer applied all too frequently in a misleading way. What homeowners and homebuyers are monitoring is principally where home prices have been and where they are headed. Nationally, the median home price rose 1 percent last year – that on top of the 53 percent rise during the five-year boom from 2000 to 2005. This year, the national median price is expected to fall 1 percent. By any standards, it is an extreme stretch to call it a correction when a particular asset price rises better than 50 percent and then retreats one percent. Even a relatively large price decline of 12 percent in Sarasota cannot reasonably be considered as a correction when its local market had a 150 percent price increase during the boom. Let’s see, that is 150 steps forward and 12 steps backwards.

Each Market is Unique
Yet, consumers are exposed to constant pounding of correction, implosion, recession, and other negative words when discussions of the housing market arise. Against all that doomsaying, naturally consumers would pause and step away from buying a home. Even in places like Columbus, Ohio – a market where prices have only modestly risen and what no sane economists would characterize as being in a bubble -- buyers have pulled back due to constant negative messaging from the media. Many REALTORS^® have relayed stories of a buyer prospect who decided to not purchase because of a headline of a housing market collapse in a national newspaper. This is irrational -- there is no bubble in Columbus Ohio! Or in Kansas City or in Houston. The latest median local prices in these markets were around $150,000. Anyone with a good credit history and a middle class job should have the means to purchase a home (though perhaps not the dream home).

Think also of the buyers who got priced out when mortgage rates were rising, yet refused to re-enter the market when mortgage rates were falling. Consider, mortgage rates averaged 5.8 percent at the very peak of sales activity in August 2005. Sales subsequently declined as rates moved up to 6.8 percent one year later. This is understandable. Higher rates mean fewer buyers can qualify. However, mortgage rates since that time have fallen - to 6.2 percent in the first quarter of 2007. But the falling rates have not attracted buyers back into the market. All the while, over the past year-and-a-half the economy added 3.5 million net new workers with wages having risen by 6 percent. So we have plentiful more jobs at a higher pay and similarly favorable mortgage rates, yet home sales are down by 15 percent from the peak. Buyer confidence has simply disappeared!

Sales Volume -- NOT Prices
The correction is occurring not in home prices but in sales volume and new home construction. Yes, home sales are down -- perhaps worthy of the word correction or recession. Yes, new single-family home construction fell more than 35 percent from peak to trough. And yes, construction jobs have been slashed and REALTOR income has fallen. And yes, profits are falling for homebuilders and mortgage lenders. So from an economic impact and income generation, there is clearly a housing market adjustment. Workers and companies in the industry are being impacted.

Stock market transaction volumes are not that critical to stock market investors. Falling sales volume in New York Stock Exchange does not imply a stock market correction. Investors, rather, focus intently on the stock price. Housing wealth accumulation prospects should and would be the focus for homebuyers, too. Unfortunately though, today’s homebuyers are instead bombarded with the negative sound bites of RECESSION, CORRECTION, and IMPLOSION when the matter of housing shows up on the media without the distinction whether one is talking of home price (which has been either positive or minimally negative depending upon local markets) or of sales volume change or homebuilder’s profits (which has been falling but not of importance from consumer’s point of view).

For the Record
There is indeed a recession in terms of construction activity, construction jobs, and falling sales. But there is really no HOME PRICE recession/correction/implosion. REALTORS should set that record straight. REALTORS^® should also discuss the one consistent proven way to accumulate wealth over a long-period -- the one through homeownership. The net worth for a typical homeowner is $184,000. The net worth for a typical renter is about $4,000. That is a something that all REALTORS^® should be discussing with their buyer prospects.

Courtesy of:

Eleanor Lightsey O'Key, EVP

Inventory is still above average, and there are some great values out there in every segment of the market from first time home buyers to vacation and investor properties. Sean Ryan and Associates are representing a number of these great opportunities check them out, or call us 843-842-0927 for our free Best Buys report.