Midlands Electircal

Your Heating and Air System (HVAC) is one of the most significant components of your property, whether it is a residential or commercial property.  The last thing you want is to buy or rent a property and the HVAC need to be replaced.  The same is true if you already own a home.  Wise homeowners will have a service agreement with a trusted Heating and Air Company to provide preventive maintenance throughout the year.  It is a proven fact that preventive maintenance is much cheaper than corrective maintenance.  Periodic maintenance on the HVAC system will allow your system operate much more economically as well as last much longer.  Just as one needs to change the oil in your car, your HVAC must have scheduled maintenance as well.

Every competent Real Estate Agent will highly recommend a HVAC inspection prior to purchasing a home.  This inspection can be completed for less than $200 in most cases and provide the information needed by the buyer to make an informed decision.  In years past, most lenders would require a letter from the HVAC Company stating that the system and air ducts are in good operating condition.  Very few lenders require this inspection today resulting in many homebuyers deciding to forgo the inspection.  This can be a very expensive gamble should the system need replacement shortly after moving into your new home.

If you will be leasing commercial property, make sure you know what the tenant is responsible for in case something should break.  Many commercial leases today have verbiage requiring the tenant to repair anything that breaks and if it cannot be repaired, the tenant must replace it.  Obviously, you do not want to buy a new Heating and Air System that will not even belong to you!  Commercial tenants should most certainly have a trusted HVAC Company come out and inspect the unit.  A reputable technician can usually give you an estimated life expectancy for the unit.  The cost of this inspection could save you thousands of dollars during the lease term!

If you are in the Midlands of South Carolina and in need of a highly trusted and respected Heating and Air Company, call Midlands Electrical Heating and Cooling.  Brent Neuberg has been providing maintenance and saving customers thousands of dollars when it comes to Heating and Cooling Systems (HVAC).  Brent will conduct maintenance services on the system as well as inspect the air ducts to ensure they are properly insulated and air is flowing properly throughout your property.  Give Brent Neuberg, with Midland Electric, a call at 803-528-1555.  You will be glad you did!!

If you are interested in getting your South Carolina Real Estate License, we would love to have attend our Real Estate School For Success.  We will train you to not only pass the state exam, but also teach you how to build a lucrative career in the Real Estate Industry.  We also offer many other licensing courses such as Property Manager, Appraiser, Home Inspector, etc.  The Real Estate School For Success is an approved MyCAA provider, which allows for many military spouses to take all classes at no charge.  Give us a call for details.  You can also receive a 10% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.

Discount/Promo Code is:  HVAC

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Today was the inauguration of the Success In Real Estate Radio Show on Carolina 92.1 FM and what a great show it was!  The first objective in buying or selling real estate is Financing.  Most South Carolina Real Estate transactions require approved financing and the one person you need to talk to is Erica West, with New American Mortgage.  Erica can have the underwriting complete and ready to close within seven days of a property going under contract!   You may call Erica West at 803-528-5019

We discussed in great detail many different types of financing available today.  Erica West can have a buyer approved and ready to close within one week of the property going under contract.  I know that sound to good to be true, but it is true!  It is so important to have someone who knows the right questions to ask to ensure you not only get approved for a loan, but a loan that would be in your best interest depending on your goals and objectives.

We also talked about the 2012 Palmetto Heroes Program.  Under this program, Palmetto Heroes can get a loan with a fixed rate of 3.75% and $5000 to go towards your down payment.  Palmetto Heroes include; Law Enforcement Officers, Correctional Officers, Teachers, Fire Fighters, Nurses, Veterans, and EMS Personnel.

Erica explained how homebuyers could purchase homes that need repairs at incredibly low prices and include the money needed to make all repairs in the financing.  This is called the FHA 203-k loan.  This is a government loan, used when purchasing an owner occupied property, which includes required funds to make necessary repairs that may be required.  The end result is that the homebuyer now owns a home with substantial equity in the home after repairs are made.  The homeowner or purchaser cannot complete any of this work; only licensed contractors can complete the work.  We also discussed USDA loans for homes in Rural areas. 

If you are interested in getting your South Carolina Real Estate License, we would love to have you attend our Real Estate School For Success.  We will train you to not only pass the state exam, but teach you how to build a lucrative career in the Real Estate Industry.  We also offer many other licensing courses such as Property Manager, Appraiser, Home Inspector, etc.  The Real Estate School For Success is an approved MyCAA provider, which allows for many military spouses to take all classes at no charge.  Give us a call for details.  You can also receive a 10% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.

Discount/Promo Code is:  Finance

 Click below to listen to the Success In Real Estate Radio show  

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The Real Estate Contract of Sale used most often in the Midlands of South Carolina, provides for the buyer to have ten business days to exercise their due diligence to ensure the home is in the condition they hope it will be in.  This includes in number of inspections such as a Home Inspection, Termite Inspection (CL-100 Letter), Lead Paint Inspection, etc.  Another very important inspection is the HVAC (Heating and Air) Inspection.  It is extremely important to ensure your HVAC system is in very good working condition. 

If the HVAC system goes out and needs to be replaced, it will be very expensive to replace the unit.  This is the last thing a buyer needs right after buying their new home!  Not only do I highly recommend getting a Heating and Air letter (Inspection), I suggest you have your HVAC Company come out a day or two prior to closing to re-inspect to make sure there will be no surprises after you close.  Make sure you choose a highly reputable Company, such as Brent Neuberg with Midlands Electrical Heating and Cooling.  You can contact Brent by calling him at (803) 528-1555.

Andy Aun, with Aun and McKay Law Firm, will be holding his monthly Tudor and Tour Seminar on HVAC issues when purchasing a home in South Carolina.  The seminar will be held Thursday, April 26^th from 5:30pm till 7:00pm at 2819 Heyward Street, Columbia.  This Seminar is open to all and will include Food and Drinks.  Please RSVP if you plan to attend the seminar so we know how much food and drinks to bring.  Directions and additional information can be found in the attached flyer below.

If you are considering a Real Estate License to start a new career or even to make some money part time in Real Estate, we would love to help you become a Successful Real Estate Agent at the Real Estate School for Success.  We have classes for any type of license you would be interested in to include, a SC Real Estate License, SC Appraisers License, SC Property Managers License or SC Home Inspectors License.  Military Spouses may be able to take all classes at no cost.  Call the Real Estate School for Success for additional information.

You can also receive a 10% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.

Discount/Promo Code is:  HVAC

 andy aun.bmp (2.22 mb)  Tudor and Tour Seminar Flyer

   Click Here to listen to this weeks Success in Real Estate Radio Show.

CL - 100 Termite Inspection Letter

When purchasing a home, it is critical to ensure all parties know and understand the terms in the Contract of Sale.  One provision in the contract of sale used in the midlands of South Carolina deals with the purchases ten day due diligence period.  This period is from the day the property goes under contract, the purchaser has ten business days to have any inspection they desire to ensure the property is in the condition the purchaser believes it to be.  One inspection purchaser’s need is the CL- 100 inspection or some call a termite inspection. 

The CL – 100 Letter/Inspection will let you know if there is any present or previous termite infestation.  It will also let you know if there are any moisture or water problems/damages in or under the property.  There is an old saying in South Carolina that the question is not if you will have termites, but when?  Termites thrive in the south due to the warm moist weather we experience.  Although this CL-100 letter is “optional” for the purchaser, it may be required depending on the type of financing you will use.  FHA and VA loans will probably require the letter prior to funding the loan.  It is always HIGHLY recommended to have the inspection whether the lender requires it or not.

Once you purchase a home, it is also recommended to have a termite bond.  This is your insurance in case termites cause damage to your home.  The company issuing the bond should provide treatment and make all repairs due to termite infestation. Be careful in choosing the company you purchase a bond from.  Some companies will only treat for the termites but not make any repairs if they cause any damage.  The company and person I know will treat you fairly and do exactly what he says he will do is Bobby Baine, owner of Baine Termite and Pest Control.  If you have any questions or problems with termites or any other pests, give Bobby Baine a call and he will come out and answer all questions and concerns you may have.  You can reach Bobby by calling (803) 550-1921.

If you are considering a Real Estate License to start a new career or even to make some money part time in Real Estate, we would love to help you become a Successful Real Estate Agent at the Real Estate School for Success.  We have classes for any type of license you would be interested in to include, a SC Real Estate License, SC Appraisers License, SC Property Managers License or SC Home Inspectors License.   

You can also receive a 10% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.

Discount/Promo Code is:  termites

   CLICK HERE to listen to this weeks Success in Real Estate Radio Show!

Talk to any potential buyer or seller of real estate in South Carolina, you can expect the subject of property taxes to come up very quickly.  It’s a big issue for many reasons and rightfully so. 

Now is a great time to buy real estate in South Carolina, and for the first time in several years, the potential of selling is now looking good as well.  Inventories are at lowest numbers in five years, the average sales price is up nearly $10,000 from this time last year, and the interest rates are still very low.  South Carolina property taxes are near the lowest in the country for residential homes IF it will be owner occupied.

However, commercial real estate that includes non-owner occupied residential property (investment/rental property) is among the highest taxes in the country.  Investment property is taxed at the 6% assessment rate whereas owner occupied property is taxed at the 4% assessment rate.  After all, the math is calculated, the 6% rate results in about twice the taxes owed than the 4% rate.  Effective January 1, 2013, many real estate sales will have an additional 3.8% tax charged to the seller of real estate.  The 3.8% real estate tax is part of the Health Care bill to help pay for the cost of health care.

South Carolina Real Estate Licensees must understand how the property taxes will affect real estate transactions so they explain it properly to potential buyers and sellers of real estate.  Andy Aun, Attorney with Aun and McKay Law Firm, will be holding this months tutor and tour seminar on Thursday, March 29^th, at Cobblestone Farms in Lexington, SC.  This seminar is open to the everyone at no charge.  Some of the topics to be discussed include:

·        Issues to consider when advising clients in real estate transactions

·        Options which allow for the 4% assessment rate on investment properties

·        3.8% real estate tax under the Health Care law

·        Changes in law relating to SC tax assessments

If you would like to attend this free seminar, contact Angela, with Aun and McKay Law Firm. to RSVP.  The RSVP is required to make sure we have enough food and drinks for everyone.  You can find all the information about this seminar in the flyer attached below.

If you are considering a Real Estate License to start a new career or even to make some money part time in Real Estate, we would love to help you become a Successful Real Estate Agent at the Real Estate School for Success.  We have classes for any type of license you would be interested in to include, a SC Real Estate License, SC Appraisers License, SC Property Managers License or SC Home Inspectors License.  

You can also receive a 10% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.

Discount/Promo Code is:  tax

 Taxation without Rationalization Seminar1.pdf (141.20 kb)

  Click Here to listen to Succes in Real Estate Show.

Steel Piers to correct Foundation Issues

The most important and critical part of any home is the foundation.  If you have a good and strong foundation, the home will likely last for a hundred years or more.  However, if the foundation begins to develop problems, it can result in your home crumbling around you over time.  Although home buyers will likely have homes inspected prior to closing, I would recommend buyers have a foundation expert check out the foundation to ensure you will not have problems after you purchase the home.

The expert in foundation repairs in the southeast and specifically South Carolina is Terratec, Inc, soil and foundation stabilization specialist.  Terratec uses steel piering to push consecutive three foot long sections of high-strength steel tubing into the ground to refusal or load-bearing strata.  Structures are stabilized and/or lifted once all pier sections are installed to the proper depth at each of the required pier locations.  After stabilization or lifting is achieved, the steel piers are permanently attached to heavy duty steel brackets that have been previously mounted to the structure’s foundation footing.

As a buyer, when looking at homes for sale, there are several things you should look for when it comes to potential foundation issues.  A few signs of problems would include:

• Uneven or sloping floors
• Cracks in the brick foundation
• Cracks in walls
• Doors and windows will not open properly
• Space between wall and ceiling or floor

If you are considering selling your home, sellers should also check for these signs.  We all know bad news does not get better with time, so lets make sure we know prior to negotiating a contract with a buyer, if there are any issues with the foundation.  If you see any of the above signs of potential foundation issues, call Dwayne Blanton, with Terratec, Inc., and he will come out at no charge to pin point potential problems.  Dwayne will also provide a free estimate to have your foundation repaired.

If you are considering a Real Estate License to start a new career or even to make some money part time in Real Estate, we would love to help you become a Successful Real Estate Agent at the Real Estate School for Success.  We have classes for any type of license you would be interested in to include, a SC Real Estate License, SC Appraisers License, SC Property Managers License or SC Home Inspectors License.  We have a Home Inspection class staring on March 15^th, 2012 for only $450.  That is nearly half price when compared to other providers.  If you or someone you know would like to be a Home Inspector, register for this class on line or call the Real Estate School for Success. 

You can also receive a 10% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.

Discount/Promo Code is:  foundation

  Click here to listen to Saturdays Success in Real Estate Show.

Government Loans

The two Government Loans we will discuss in this blog is the FHA and VA loans.  The FHA loan is Government Insured and the VA loan is Government Guaranteed.  Government loans will typically have more conditions to be met than conventional loans, but the one condition that makes these loans so common today is the down payment requirement.  VA loans require zero down payment while the FHA loan requires 3 ½ % down as compared to the conventional loan which would require anywhere from 5 % to 20% down.

As the Seller of a home where the buyer is seeking a Government loan, it is important to understand what closing costs will be involved with the transaction.  Although it is very common in the market today for sellers to agree to pay for the buyers closing costs, the seller must pay some of the buyer costs.  These costs are called non-allowable costs.  Non-allowable costs are those costs that the government will not allow the buyer to pay.  Either the seller will have to pay such costs or the lender will have to pay these costs.  If the lender agrees to pay the costs, it will most likely cause the interest rate to go up to offset the perceived loss to the lender.  As the seller of the property, make sure your agent explains what the non-allowable costs will are and the purpose for the costs.  It will affect you bottom line (Net Return).

Government loans also require addendums to the contract, such as the FHA addendum.  This addendum must be signed by the buyer and the seller, which simply states that the property must appraise for the purchase price or more or the financing will not be approved.  This is a common contingency in the contract already, but this addendum must be included with the contract when submitted to underwriting.  If you are using the VA loan, the Government will require a Certificate of Reasonable Value (CRV), which is the Governments equivalent of an appraisal.  If the CRV is less than the sales price, the buyer must pay the difference of the two amounts out of pocket.  The Government will not loan more than the CRV amount.  If monies are paid out of pocket, it cannot be borrowed or given to the borrower.  The money must be in the buyers bank account and it must be seasoned for at least sixty days.

Andy Aun with Aun and McKay Law Firm will be conducting a seminar to educate real estate agents, as well as buyers and sellers, on the requirements of Government financing.  There are many issues that must be considered at the time a contract is ratified in order to avoid default by either party to the contract.  This seminar is FREE to all and will include food and drinks.  Please see the flyer with all the information you need for this seminar at the bottom of this blog.  This seminar will be Thursday, Feb 23^rd in Lexington, SC.  Hope to see you there!

When discussing finance or re-finance with a loan officer, you will do well by including Erica West, with New American Mortgage, as one of those you speak to.  Erica West is an expert in financing as well as down payment assistance programs.  Erica may be able to get the down payment you need at no cost to you.  Give Erica West a call at (803) 528-5019.

If you are considering a Real Estate License to start a new career or even to make some money part time in Real Estate, we would love to help you become a Successful Real Estate Agent at the Real Estate School for Success.  We have classes for any type of license you would be interested in to include, a SC Real Estate License, SC Appraisers License, SC Property Managers License or SC Home Inspectors License.  You can also receive a 15% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.

Discount/Promo Code is:  government

 flyer.bmp (2.47 mb)  Flyer for Aun and McKay seminar on Government Loans.

  Click here to listen to Saturdays Success in Real Estate Radio show!

Loan to Value (LTV) Ratio?

As a Realtor®, it is so important to know and understand the type of loan your homebuyer will be using.  Otherwise, the contract of sale will likely not be drafted in such a manner to protect your homebuyer’s best interests.  It is simply not enough to receive a pre-approval letter from the lender.  Exercise your due diligence and make sure you know the type of loan and terms associated with the loan or you may be wasting your buyers (and your own) time.

One example I use in my classroom is concerning a young man that came to see me about purchasing a home.  As always, I asked him if he had already applied for a loan.  Much to my surprise, he said he did and had a pre-approval letter in his hands for $150,000.  I then asked if he knew the terms of the loan and he replied that he had been told he could buy any house up to $150,000.  I called his lender and learned that he was pre-approved up to $150,000 with a 90% Loan to Value (LTV) ratio.  After hanging up with the lender, I asked the buyer how much money he had to put down on his new home.  He said if he had to put money down, he felt comfortable putting $5,000 down on the home.  I told him the most he could buy a house for is $50,000, which was very confusing to the buyer.  You see, the LTV ratio is critical in knowing what one can buy.  With a 90% LTV ratio, that means the bank will loan 90% of the purchase price and the buyer will have to put 10% as a down payment.  What a huge waste of time this would have been to all involved if we had made an offer based solely on the pre-approval letter.

Down payments can be one of the biggest concerns for homebuyers today.  Therefore, the type of loan program will typically be decided by the amount of money available for down payment as well as credit report/history.  There are four common loans a homebuyer can choose from today with varying degrees of LTV ratio’s. 

1.  Conventional Loans have a 95% LTV ratio.  However, if a buyer only makes a down payment of 5%, they will likely have to pay Private Mortgage Insurance (PMI).  PMI will be paid until the buyer has accumulated 20% equity in the property.

2.  FHA loans have a 96.5% LTV ratio, which requires 3.5% down payment.  Since these are Government Insured loans, you will likely have to pay Mortgage Insurance Premiums (MIP).

3.  VA loans have a 100% LTV which requires no down payment.  This is a Government Guaranteed Loan.  The government will guarantee the first 25% of the loan amount, up to $104, 250.  Lenders will typically be willing to loan up to four times the guarantee, or $417,000, since they basically get 25% equity in the property with the Governments Guarantee.  The Government Guarantee eliminates the need for PMI or MIP.

4.  USDA loans also have a 100% LTV.  However, one can only get this loan for the purchase of a home in a rural area.  You will have to check with your lender to determine if the home you are considering is listed as a rural property.  Although you will have to pay PMI with this loan, it is very cheap as compared to Conventional loans.  One can expect to pay around $12 per month for every $50,000 in loan amount.

It is vitally important for homebuyers to use a Realtor® that understands the types of financing and which loan type will best suite the buyers circumstances as well as having a very knowledgeable loan officer.  I always suggest talking to two or three loan officers to see which one can get you the best deal.  I also suggest you use a local lender that you can actually go see and talk to.  Most on-line lenders are out of state and often times very difficult to get answers or help from in a timely manner.  When discussing finance or re-finance with a loan officer, you will do well by including Erica West, with New American Mortgage, as one of those you speak to.  Erica West is an expert in financing as well as down payment assistance programs.  Erica may be able to get the down payment you need at no cost to you.  Give Erica West a call at (803) 528-5019.

If you are considering a Real Estate License to start a new career or even to make some money part time in Real Estate, we would love to help you become a Successful Real Estate Agent at the Real Estate School for Success.  We have classes for any type of license you would be interested in to include, a SC Real Estate License, SC Appraisers License, SC Property Managers License or SC Home Inspectors License.  You can also receive a 15% discount on any class by entering the promo code below when you register on line at the Real Estate School for Success.

Discount/Promo Code is:  loans

 Click below to hear this weeks Success in Real Estate Radio Show!

What is a Reverse Annuity Mortgage (RAM)?

A reverse mortgage is a type of home equity loan that allows you to convert some of the equity in your home into cash while you retain home ownership. RAMs works much like traditional mortgages, only in reverse. Rather than making a payment to your lender each month, the lender pays you. Unlike conventional home equity loans, most RAMs do not require any repayment of principal, interest, or servicing fees for as long as you live in your home. Funds obtained from an RM may be used for any purpose, including meeting housing expenses such as taxes, insurance, fuel, and maintenance costs.

To qualify for an RAM, you must own your home. The RAM funds may be paid to you in a lump sum, in monthly advances, through a line-of-credit, or in a combination of the three, depending on the type of RAM and the lender. The amount you are eligible to borrow generally is based on your age, the equity in your home, and the interest rate the lender is charging.

Because you retain title to your home with an RAM, you also remain responsible for taxes, repairs, and maintenance. Depending on the plan you select, your RAM becomes due with interest either when you permanently move, sell your home, die, or reach the end of the pre-selected loan term. The lender does not take title to your home when you die, but your heirs must pay off the loan. The debt is usually repaid by refinancing the loan into a forward mortgage (if the heirs are eligible) or by using the proceeds from the sale of your home.

If you would like to know more details about RAM’s, Andy Aun, with Aun and McKay Law Firm will be discussing RAM’s in this months Tudor and Tour Seminar.  All seminars are FREE and everyone is welcome.  There will also be food and beverages so please come out and enjoy meeting and talking with each other.  Please find the flyer below to obtain information such as time and location as well as RSVP requests.  If you would like additional information about RAMs or any other type of financing, you need to call Erica West, with New American Mortgage at (803) 528-5019 or visit her Face Book Page at “Mortgage Go To Gal”.

If you are interested in getting your Real Estate License, Appraisal License, Property Management License or Home Inspector License, give us a call at the Real Estate School for Success, (803) 807-9152 or you can register online.  You can receive a 15% discount on those classes by entering the PROMO CODE below when registering on line.

DISCOUNT PROMO CODE IS:  Reverse

January Reverse Mortgage Flyer.jpg (290.78 kb)  Andy Aun Tudor and Tour Seminar Flyer

Click below to listen to Saturdays Success in Real Estate Radio Show 

One of the top reasons for disciplinary actions against Real Estate Agents is due to failure to disclose.  Although there are many required disclosures for South Carolina Real Estate Agents, the one we discuss today is the requirement to disclose known material defects with a property.  To be clear, Real Estate Agents are not responsible for finding defects, only to disclose them when they become aware of them. 

Real Estate Agents should always practice Risk Reduction when involved with a Real Estate Transaction.  Having a home inspection conducted by a licensed Home Inspector prior to putting the home on the market is a great idea for several reasons.  Often times Real Estate Agents will list a home, spend money marketing the home only to finally get the property under contract and find out from the buyer after their home inspection that problems exists with the home that the seller is not willing or able to fix.  Now we have a listing that we have spent money to market and cannot sell.

Smart Real Estate Agents are learning that the cost of a home inspection to determine if any material defects exist is much cheaper than spending hours of time and money to market and get the house under contract only to learn later, you cannot close.  The inspection report can also be used to show potential buyers.  Buyers feel much better about a home they are interested in if they can see the results a recent inspection.  Property Condition is always a major concern for buyers.  In other words, the home inspection may be the very best marketing tool you can get!

Selecting a good Home Inspector is the next important decision.  We are very fortunate in the Midlands of South Carolina to have several very good home inspectors.  Home Inspectors are not required to take any additional training to further their knowledge after being licensed as a Home Inspector.  The good inspectors take training to stay on top and make it their business to know everything about Home Inspections.  Another question to ask a Home Inspector is if they are members of the Association of Home Inspectors (ASHI).  Members of ASHI are required to attend training and held to a higher standard.  One of the best Home Inspectors in South Carolina is David Dubose with Dubose Home Inspections.  David is a past president of the SC Home Inspectors Association and current instructor at the Real Estate School for Success.

If you would like to get your Home Inspection License, the Real Estate School for Success will be offering this four day class starting January 26^th (Thurs – Sun).  We are offering a huge discount in price.  This class will cost only $450.00!!  Give us a call if you would like to register for this class or you can register online at the Real Estate School for Success.  If you are interested in getting a SC Real Estate License, you can receive a 15% discount on those classes by entering the PROMO CODE below when registering on line.

DISCOUTN PROMO CODE IS:  Inspection

 Click to listen to this weeks Success in Real Estate Show.