Real Estate In Myrtle Beach

Myrtle Beach Condo Market – Third Quarter 2007 Report

Condo Area Activity for the past 3 months:

June 27 – September 27, 2007

Entire Grand Strand Area:

Total number of condos

currently available for sale:              9,290 units

Price Range of Available units:       $ 39,900 - $ 2,750,000

• $ 39,900  - 1 BR/1BA condo, under 600 sq. ft., located at Cedar Creek in Myrtle Beach
• $ 2,750,000 – 5BR/4.5BA oceanfront condo, over 3,000 sq. ft., located at the Grand Dunes in Myrtle Beach

Total number of condos

sold in the past 3 months:                 838 units

Price Range of Sold units:                $ 40,000 - $ 2,200,000

* Only 9% of the listings available have sold in the past 3 months.

Myrtle Beach:

Total number of condos

currently available for sale:              4,108

Price Range of Available units:       $ 39,900 – 2,750,000

Total number of condos

sold in the past 3 months:                 314

Price Range of Sold units:                $ 63,000 - $ 2,200,000

* Less than 8% of the listings available have sold in the past 3 months.

North Myrtle Beach:

Total number of condos

currently available for sale:              1,662

Price Range of Available units:       $ 46,000 - $ 2,499,000

Total number of condos

sold in the past 3 months:                 101

Price Range of Sold units:                $ 40,000 - $ 1,495,000

• $ 40,000 – an efficiency unit (a studio), under 450 sq. ft., located at North Myrtle Beach Golf & Tennis
• $ 1,495,000 – 7+ BR/6BA, over 3,000 sq. ft, oceanfront condo located at Ambassador Villas.

Only 6% of the listings available have sold in the past 3 months.

***Stay tuned for upcoming in depth reports on the condo market, as well as Homes & Land Reports.

Question: I am selling my home on my own and have a potential buyer who wants to purchase the home using a land contract. What are the advantages and disadvantages of this type of purchase for me, as the seller?

Answer: Land contracts of sale are probably the oldest property-transfer mechanisms. They were originally used for transactions where the buyer didn't have enough cash to come up with the full purchase price. Instead of giving the buyer a deed to the property, the seller gave a contract to purchase. When the buyer eventually came up with enough money, the sale was consummated, and a deed issued.

Today, some buyers use land contracts of sale to "flip" properties. That is, they tie up the seller with the contract, without having the expense or liability of getting new financing, then quickly find a "re-buyer" for more money. They then sell the property to the re-buyer, pocketing the profit; it's all handled in escrow.

Since you're selling on your own, my suggestion is that you get a comparative market analysis from a good Realtor immediately. This will show you how much properties similar to yours are selling for and allow you to be sure that your property is not underpriced. Only then, if you're happy with the price, should you proceed with the sale.

Since buyers with good credit can get financing for up to 97% of the purchase price in today's market, chances are that the reason your buyers want to use a land contract - assuming they're not flipping the property - is a poor credit rating. Get a credit check to see if you want to consider selling to them.

Finally, if they check out, you may want to use a lease-option instead of a land contract. It puts the buyers in the position of tenants until they actually exercise the option and buy the property. That means you will probably have an easier time getting them out if they don't pay.

We've only scratched the surface here on land contracts of sale. You'll want to get a good attorney to give you all of the pros and cons and draft a contract for you if you decide to use one.

North Myrtle Beach, SC, Homes sold during August, 2007

Price Range                        Number of Homes sold in that 

                                                        price range

$ 100,000 - $ 150,000                                     0

$ 150,000 - $ 200,000                                     1

$ 200,000 - $ 300,000                                     6

$ 300,000 - $ 400,000                                     4

$ 400,000 - $ 500,000                                     6

$ 500,000 - $ 600,000                                     3

$ 600,000 - $ 700,000                                     3

$ 700,000 - $ 800,000                                     0

$ 800,000 - $ 900,000                                     1

$ 900,000 - $ 1,000,000                                  0

$ 1,000,000 - $ 1,500,000                               0

$ 1,500,000 - $ 2,000,000                               1

$ 2,000,000 - $ 10,000,000                             0

Note: For the purpose of drawing exact data, upper numbers quoted were "up to" the amounts indicated.  For example the price range $ 150,000 - $ 200,000 only goes to $ 199,999.  If a home was sold for exactly $ 200,000, it would be included in the $ 200,000 - $ 300,000 range, not in the $ 150,000 - $ 200,000 range.

Little River, SC, sales activity in single family homes during the month of August, 2007:

Sales price                                           Number of homes sold

$ 100,000 - $ 150,000                         0         

$ 150,000 - $ 200,000                         17       

$ 200,000 - $ 300,000                         14

$ 300,000 - $ 400,000                         3

$ 400,000 - $ 500,000                         1

$ 500,000 - $ 10,000,000                    0         

The Sun News, our local newspaper, served us a dosage of reality recently by pulling the curtain on our "hush-hush" Real Estate situation here in Myrtle Beach.   "Oceanfront prices have dropped to 2004 levels", the article proclaimed, backed by graphs and statistics and the whole nine yards... 

Having been on the front lines, I know only too well how accurate that information is.  In 2005 I got accused of raising the bar on oceanfront real estate.  Yes, some agents actually believed that I had something to do with the price surge...  I was very flattered, of course, having flipped quite a few properties for many happy investors, and having beat many agents at this very competitive game, which I was a natural at. 

For quite some time now, I have been submitting very low bids on oceanfront properties.  I love statistics; they speak to me.  In 2006 there was definite stress visible to all those who saw a clear picture by delving into the numbers.  For much of 2006, entire sectors froze up.  Large, oceanfront condo projects went from 64 transactions per year in 2005, to only 3 transactions in 2006.  STAGNATION...  PARALYSIS...  PRICE RESISTANCE...  I recongnised that pattern and started calling my investors, the very same ones I advised to stop buying at the height of the craze, when all you had to do to sell an oceanfront unit was put it on the market and wait for the offers to start pouring in.   

At first, many agents thought I was joking, or crazy.  I diligently presented my case and made my point, and for every uncooperative agent, I found another one who did work with me.  It was hard giving them and their sellers an education, but, to my defense, I did not make this situation; I was only adept at reading it correctly.  Consequently my buyers garnered oceanfront units at correct market prices.  Some examples:  an oceanfront 2BR/2BA in a new concrete & steel structure, which sold for $ 540,000 in 2005, now went to my buyer clients for a mere $ 315,000 !!!   A 1BR/1BA oceanfront unit in the same building, which only two years prior was fetching a $ 289,000 price, now went to my buyer client for only $ 179,900 !!! 

A lot of my buyer clients absolutely love me, especially when they receive their appraisals and they make $ 30,000- $ 150,000 on paper.   My seller clients get the bad news from the get go.  I am not in the business of stroking their egos and telling them what they want to hear.  I think other agents are either too timid, or not interested enough in conveying the truth, judging by the high prices that are still deluging the market. 

If you tell a seller that you can sell their property for $ 540,000, when you know very well that another unit just like it sold for $ 315,000 recently, how does that benefit the seller, who is in a financial pinch, because their mortgage has just adjusted, doubling the monthly payment?  Even with a gold commode, their unit will still garner $ 225,000 less than the ill advised price. 

I have lost sellers because I did not tell them what they wanted to hear.  Some other agent agreed with them, took the listing and put it on the market along with the rest of the 13,500 listings.  A year later, the sellers often come to me again, only this time I could no longer obtain the originally quoted price, because the market had fallen even further.  Case in point:  In 2006 I was representing the sellers of a 1BR/1BA oceanfront condo in a top notch project priced at $ 299,900.  We received an offer of $ 269,900.  I strongly recommended they take that offer.  They refused.  A few months later they gave the listing to another agent, and then another.  In 2007 they came back to me again, but this time, their unit was only worth right around $ 200,000.   They were still stubborn and insisted that I market it at $ 229,900.  An agent brought us an offer at $ 195,000, and this time I told them that if they did not take that offer, the next one they'd get would be $ 20,000 lower, because I had just sold another unit like theirs to my buyer clients for only $ 179,900, and once that closing took place it would set the bar that much lower.  They conceded, and they were very appreciative for garnering $ 20,000 more than if they had been as stubborn as they were in the past.  I was still upset, because I knew that if I had just been able to persuade them to take the original offer,  I could have made them $ 75,000 more !!! 

It is very frustrating for me to work with clients who don't follow my advice.  When you go to the dentist, you don't tell him: "I want you to do the onlay instead of the crown".   When you go to a professional, you need to follow their advice.  I don't work for commission.  I work for personal fulfillment.  If you want me to help you make a stupid decision with your money, I won't!  It's that simple.  I would rather fire the client than help them lose money.   I have advised clients not to buy, and I have refused to write offers.  I have told clients to have someone else write it up if they still wanted to go forward and make a mistake.   My clients' financial health is extremely important to me.  I take their money very personally, and I am very proud of my performance and the financial health of my clients who do listen!