Please Don't Run...I Said INTERVAL, Not TIMESHARE!

Pawleys Island and the Grand Strand in general are vacation destinations. People come here for the beaches, the golf, and the get-away. I would estimate over half of our real estate to be second home or income property. One effective way to own real estate in paradise is what we call INTERVAL OWNERSHIP.  

In my office, we deal with interval ownership of condos as well as single family homes. When I first joined Litchfield Real Estate, I was not all that familiar with intervals (also known as FRACTIONAL). I thought they were the same thing as TIMESHARES, which, for some, bring to mind images of a creepy, pushy salesman luring unsuspecting tourists into a hotel room with a free watch. If you take a few minutes to do a bit of research, you will find the differences between timeshares and interval ownership are substantial.

Luckily, I did the research for you....:-)

Timeshares versus Interval Ownership

• Timeshares allow a person or persons the right to use a property, there is no claim of ownership on the property.
• Interval Ownership means actually purchasing real estate, the weeks or months are actual DEEDED property.
• Timeshares are generally controlled and owned by a company, who sells the right to use under a contracted period of time. At the end of that agreed time period, usage returns to the company or owner.
• Interval property is divided equally amongst the owners (usually from 4-8 owners), and the interval is secured for their use.
• The value of a timeshare generally depreciates; generally will sell for 25% of original value.
• Property owned in intervals can appreciate in value (depending on the economy!), as property values follow the current market.
• Only those named in the purchase of a timeshare may use the property.
• Interval Owners may rent their property during the interval they own, if the property HOA allows. Family and friends may also use the property during the owner’s interval if the owner allows.
• Timeshares do not allow the transfer of ownership.
• Intervals can be inherited.
• Timeshare useage may be compromised if the company that owns or manages the property defaults or claims bankruptcy.
• Intervals can be claimed as an alternative residence and my be eligible for tax benefits (ask your accountant!).
• Fraud has been noted in the timeshare industry. Cases have been cited in which companies sold properties that did not exist, or misrepresented the actual location (i.e. property marketed as oceanfront ended up being far from the beach).
• Interval Owners are responsible for property taxes, condo fees, and maintenance.
• Intervals are difficult to finance. Most buyers bring cash.

I hope I do not sound like I am slamming on timeshares. I am sure there are folks out there who have had great experiences with purchasing vacation time through a timeshare company.

However, I am in the real estate business. I want buyers to know that interval ownership is a GREAT option for buyers searching for more affordable property in resort areas that may match the individual’s actual time usage.

My local association, the Coastal Carolinas Association of REALTORS, has just voted in the option to enter intervals into the MLS. This is a big deal to us down here, providing more exposure and reliable comparable property history. Yippee!!!

Check out the intervals offered by my office HERE. Call me and ask me about interval ownership!

Happy House Hunting!

Parking on Pawleys

Memorial Day weekend is second only to Fourth of July for quantity of people heading to the beach on Pawleys Island. It is kind of a madhouse!! One of the most major issues for locals and tourists alike is where to park. Unless you are staying on the island in one of the beach or creek houses, you get to fight over parking like the rest of us.

Pawleys Island has very limited public parking. That statement might make some locals chuckle. There are 6 spots for beach access with established parking on the island. The most extensive is the South End parking lot which has a fair amount of parking spots and even portable toilets for public use. There are 2 more public parking accesses on the South side of Pawleys, and 3 on the North side, the most popular being "Beach Access" at the pier. Oversized SUVs and vehicles longer than 19 feet are not allowed to use public beach access parking. The law was established to keep larger vehicles from blocking other cars in and out of beach access.

Other than the limited beach access parking, you have to find parking on the street. Be sure to watch for "No Parking Here to Corner" and other signs limiting parking. Disobeying these indicators will result in a ticket. These signs were installed for safety in improving sight lines for traffic and pedestrians.

If you don't see a sign, and you are not blocking a beach house driveway, you may park on the street as long as your wheels are ALL THE WAY OFF THE ROAD.  Get those wheels on the outside of the solid line, or you will most likely end up with a ticket.

At the time of the photo, this car did not have a ticket (yet...),  but he was sure pushing his luck with those wheels being on the road. Better safe than sorry I say!

Trouble is, especially on holidays, everyone wants to be at the beach where their friends are...on Pawleys Island. If you live in Hagley Estates, Ricefields, Allston Plantation, or other neighborhoods on the Pawleys Island Mainland (and are NOT associated with Litchfield By The Sea), chances are you will be out hunting for parking with a great deal of competition. The deal is to relax, be patient, and fall in with the Pawleys Island way of life: Easy Does It! Go around the block a couple of times...someone is bound to be leaving soon...

You may have better luck finding parking at one of the North Litchfield beach access parking areas, or the large parking area across from the Litchfield Inn on South Litchfield. A great option is to rent an oceanfront or off-ocean house on Litchfield or Pawleys. Call Litchfield Real Estate today!

Have a great summer...enjoy! Happy Hunting...for parking!!

GROWING seeds...

Hi Everyone,

I was just looking back over my first handful of blogs, searching for an appropriate post to include in the June edition of the Pawleys Island Rag, our very own "Pawleys Island ONLY Real Estate Book." I saw my very first post entitled "Sowing Seeds" and the accompanying photos of my garden in its first moments. Boy, have I come a LONG way, Baby! And, my garden, too!!

Actually, I added a gorgeous Knock-Out rosebush over the weekend, and the entire garden has really taken off.  I need to take another photo to get up to date. 

My garden has truly been an analogy for my personal growth. I have suddenly gotten increasingly busier with real estate and other fun extra curricular activities. I am getting better and better at blogging and hitting up all of my social media venues daily. 

As in the growth of a garden, the real beauty evolves little by little, day by day, slowly but surely. And suddenly, things are in full bloom before you even realize it!

Happy House Hunting!

Rachel

Why PI?

I just LOVE living in Pawley Island! I wake up grateful every day. Some might say that we locals are a bit fanatical about Pawleys Island, but it is with good reason. It's because Pawleys Island has SO much to offer...

Photo courtesy of Jim Whitney

Pawleys Island is known as the oldest seaside resort in South Carolina.  The island itself is less than 4 miles long, located 70 miles North of Charleston and 25 miles South of Myrtle Beach. The Town of Pawleys Island is actually JUST the actual island, which is connected to the mainland by two bridges, the North Causeway and the South Causeway. But, locals generalize Pawleys Island as all areas included in the 29585 zip code. 

Pawleys Island was first developed as a summer resort in the early 1700s by the families of local rice planters who owned plantations on the nearby rivers. Although people were not yet fully aware of what malaria was, they were conscious of the mosquitoes and illness that swarmed around the rivers in summer. So, they moved their families to the seaside on Pawleys Island from May to November.  The leisurely existence that became a tradition in those times has carried on to Pawleys Island's current, "arrogantly shabby", laid-back, and carefree lifestyle.

The historical district maintains 12 residences from the 1700s to the mid-1800s, including the Liberty Lodge and the Pelican Inn. Historical markers are set up along the Myrtle Avenue on the Island telling the story of each home. There are a few popular local ghost stories linked to some of these properties, including the legend of the Gray Man.

The beaches are the most obvious feature that Pawleys has to offer, but not the only one. Some visitors and locals are more into the pluff mud of the marsh. Separating the island from the mainland, the marsh provides for fantastic fishing, crabbing, shrimping, and bird watching.  The Great Blue Heron and White Egret are common marsh birds.

Photos by Bill Gobbel

One more amazing sight for nature lovers in Pawleys Island is the loggerhead sea turtle. This endangered species of sea turtle is fiercely protected by locals. The mothers come up on the beach to lay their eggs, and conservationists watch over the nests. A miracle of nature indeed...

Then, we have the unique shopping and dining found in Pawleys Island. Yesterday, someone said to me "You don't have a Zaxby's in Pawleys? Where do ya'll eat down there?" I had to laugh.  If I want good fried chicken or BBQ, I head to Hog Heaven. For the best burger in town, I go to the Pawleys Island Tavern, a favorite local hang hidden back behind the Island Shops.  For fine dining, there are an array of options, including, but not limited to: The Chive Blossom, Bistro 217, Pastaria 811, and Frank's.

The shopping style in Pawleys Island continues on in our laid back style. The Hammock Shops are an "arrogantly shabby" collection of 20 specialty shops and restaurants nestled amongst live oaks and azaleas. Benches and hammocks are available for shoppers to relax and enjoy the atmosphere. The Island Shops are located across the street and down a ways, giving you the same chilled out vibe and a quaint duck pond. Pick up a joggling board while you are here, a low country tradition...

I could go on and on about the surfing, kayaking, golf, spas, and people of Pawleys Island, but I have to get ready to meet with someone who is ready to buy a home here and join our way of life.  Come see for yourself...book a vacation in Pawleys Island and experience what we are all about. I can help you find your own piece of paradise. But, keep in mind "Pawleys Island likes people who like Pawleys Island", so slow down, kick your shoes off, and ENJOY!

Happy House Hunting!

BIKE WEEK...what can you expect in Pawleys Island?

Rumble...rumble...vrrrroooommm!!!

Get ready! Myrtle Beach Bike Week starts tomorrow. Also known as Harley Week, the Grand Strand will play host to crowds of bikers May 11-20 this year.

Traditionally held in May over Mother's Day weekend, the Myrtle Beach Spring Rally began in 1940. Bikers from all over the country come together for sun, fun, and camaraderie. As many as 200,000 bikers have been know to attend Spring Bike Week and generate millions of dollars in local revenue.

In years past, the event was HUGE, much to the chagrin of some locals. The gangs of bikers can clog up certain areas of the beach during peak daylight hours. Most local businesses welcome the Harley bikers, who come with plenty of cash to spend. Bikers of the past may have been a traditionally rowdy bunch, but today's modern biker proudly rides what can be a $20-30,000 Harley-Davidson (or even more!!). So, you can imagine that underneath the scruff and leather, some of these guys (and gals) hold very prestigious positions in the workforce.

In recent years, the Grand Strand has seen a decrease in visitors for Bike Week. This is due to restrictions on vendors and controversy between Harley Week and what is known as Black Bike Week, held in North Myrtle Beach over Memorial Day weekend since 1980. The Atlantic Beach Bikefest was established after African- Americans cited discrimination at annual biker events. In 2008, the Myrtle Beach government imposed 15 laws that sparked debate and lawsuits against local businesses filed by the NAACP.

In June 2010, the South Carolina Supreme Court unanimously overturned the MOST controversial helmet law, allowing riders OVER the age of 21 to ride without a helmet.  Bikers in the national circuit are left with a bitter taste in their mouth for the Grand Strand, feeling less welcome than in previous years.

But, don't worry, there will still be plenty of eyebrow-raising action this week.

Most of the action is centralized in Murrells Inlet; with most bikers making a stop at one of the Suck, Bang, Blow (SBB) locations.  The main traffic is seen between Murrells Inlet and Broadway at The Beach. You will not see AS MUCH congestion in Pawleys Island, but some bikers do stay in PI, live here, or pass through for sight seeing.

Bikers: be sure to check out www.myrtlebeachbikeweek.com for a guide to local events!

And, check out some property while you are in town...

Bike Week....love it or hate it...it is here this weekend. Ride safely and have FUN!

Finding Your Piece of Paradise in Pawleys Island...

OK....you have decided Pawleys Island is THE place for you; you are pre-qualified with your preferred lender; you have found a Buyer's Agent you are comfortable with....now what?

Now comes the FUN part...finding your dream house!

Before you meet with your agent for the first time and really get down to the nitty gritty, I recommend you pull out pen and paper and write down your wish list. I believe in the power of the written word...if you rely on the thoughts bouncing around in your head, you might forget an important detail.

Start with the basics:

• Single family home, condo, or townhouse?
• What is your price range? 
• How many bedrooms?
• How many bathrooms?
• What type of parking: is a garage essential? If so, how many vehicles does it need to fit?
• What is your preferred floor plan? Open, split, etc? How many floors? (I HATE stairs, so that's why I live in a Ranch-style house...)
• Gated community?
• Proximity to the ocean? (This is a big one in Pawleys Island...)

Then, get more specific about the details of your DREAM HOME:

• Would you like a pool? Would it be your own personal pool or a community pool?
• What size yard would you like? ( The house I grew up in is flanked on either side with large wooded lots that my parents own...so naturally, I looked for the same type of privacy in the layout of MY current home.)
• Do you need a fenced in back yard?
• Is the view important?
• What does the house LOOK like? (colonial, modern, funky, simple, brick, stucco, etc...)
• Do you need a "man cave"?
• What type of kitchen will your family be comfortable with? 
• Do you prefer a new home, or will an older property suit your needs? Are you willing to look at a "fixer upper"?

These questions should get you started in narrowing your scope. The more specific you can get, the more it will help your agent find what you are looking for in the market. You may have to compromise on a few things, but you might as well start off with every detail you can dream up!

You should ask your agent to help you distinguish the neighborhoods of Pawleys Island:

• Town of Pawleys Island
• North Litchfield
• Litchfield By The Sea
• South Litchfield Beach
• The Tradition
• Willbrook Plantation
• The Reserve
• River Club
• Litchfield Country Club
• Litchfield Plantation
• Waverly, River Oaks, Rossdhu
• Pawleys Retreat
• Ricefields
• Heritage Plantation
• True Blue
• Hagley Estates
• Allston River Bluffs
• Allston Plantation
• Pawleys Plantation
• Prince George
• Debordieu

Yes, that seems like a lot of different neighborhoods. Each one has its own unique charm and amenities to offer.  It may seem daunting, but living in Pawleys Island, you have a few factors in your favor:

• EVERY neighborhood in Pawleys is within a few minutes of the beach.
• If your job is in Pawleys, your commute will be brief.
• You are in the Waccamaw School District whatever neighborhood you choose. (There are also several private school options in Pawleys Island.)

So, start brainstorming about your dream home and get it down on paper. Your real estate agent WANTS to help find the perfect house for you. Call me; I would definitely LOVE to help you. It certainly helps if you start out by deciding what that house looks like....it may change as you view real, live houses on the market. But, at least you are taking action!

Happy House Hunting!

Show Me the Money!

When you go shopping at the mall, the salesperson does not care how much money you have in your bank account. They only really care if your credit card goes through when it is swiped. Well, no one I know personally carries around a credit card with a $200-500,000 limit. So, this is why the process of buying a home becomes a little more tricky.

Some consumers shop for houses the way they shop for a new pair of shoes. We, in real estate, call them "tire kickers."  There are agents who will not show property to buyers unless they are pre-qualified by their lender. 

Here is what John Faiella, Loan Officer at Gateway Mortgage Group, has to say about pre-qualification:

 “Power” is not a word you typically associate with obtaining financing for a home purchase, but it should be. Your power source: pre-qualification.

What in the world is “Pre-qualification”?

The pre-qualification process allows you - and the prospective seller - to know you are qualified to finance a certain amount of money, even though you haven’t yet found the actual home you’d like to purchase.

Why is Pre-qualification so Powerful?

In a nutshell, pre-qualification lets home sellers know that you are a serious prospect - as opposed to tire kickers. Your pre-qualification letter can be used as a bargaining chip.

For example, let’s assume you find your dream home next week. The seller has two buyers in front of them making an offer on the house. One (you) is pre-qualified with a mortgage and ready to commit. The other potential buyer is just starting the process. Which buyer is the seller more likely to give priority?

Bonus: Another nice benefit of being pre-qualified is that we’ll be much less likely to hit unforeseen snags later on down the road.

How do I get Pre-qualified?

The pre-qualification process is quite simple. You and I will briefly analyze your financial situation and determine how much home you can comfortably finance. I’ll also ask you to fill out a mortgage application. Meanwhile, it would be a great idea for you to begin compiling supporting documentation such as:

•                  Recent paycheck stubs

•                  Last two years tax returns

•                  Bank and brokerage statements

With a pre-qualification letter in hand, you’ll be ready to embark on the journey of finding and negotiating the purchase of the home. Best of all, you have the power in your hands.

Now, for all of you out there who are self-employed, there are other things to consider when it comes to pre-qualification. I learned this myself when my husband and I bought our first house last year. Ryan Heinemann, Branch Manager at First Home Mortgage, had these tips for the self-employed:

"A self-employed borrower must have 24 months in the business and the income is calculated based on an average income reported on tax returns based on an income calculation provided by Fannie Mae/Freddie Mac."

If you are serious about purchasing a new home, it is essential that you get pre-qualified, if not pre-approved. The most practical reason is that you want to know your limit as it will affect your process of viewing and deciding on your dream house. It would be terrible to look at a house and fall in LOVE, then come to find out that is outside of your financial capabilities. Set your boundaries up front and you will not be setting yourself up for disappointment. 

So what is the difference between pre-qualification and pre-approval?

Pre-qualification is pretty simple. Your loan officer will ask you basic information about your income, debts, and assets. The officer will then give you a verbal estimate of how much you MIGHT be approved for in a mortgage. This is helpful mostly for deciphering your general price range in house hunting. This definitely narrows the scope for your real estate agent when she is selecting houses to show you.

Pre-approval is a more in-depth process. You must provide proof of your income, debts, length of employment, credit score, etc to the mortgage company or bank. This is where you will need the specifics detailed by John Faiella above, such as tax returns for the last couple of years, investments, etc. Once all of the documents are in order, the lender will give you a letter stating the maximum amount they WILL lend you.

Of course, a seller will be much more comfortable with a letter of pre-approval, as it indicates that there is LESS chance of complications in financing and that it is a good idea to enter into a contract with you.  In a hot market, where a seller is looking at multiple offers, your letter of pre-approval  will give you an advantage over someone who is not pre-qualified by their lender.

Once you know what amount you can afford, you will have to decide what TYPE of loan you would like. There are an assortment of options, depending on how much of a down payment you have on hand, how many years you would like to finance, and even location of the property can make it eligible for certain types of loans. Leigh Reid, Principal at First Trust Mortgage, had this to say about current lending options:

"Everyone knows how volitle and unfriendly the banking/lending environment has been over the last few years but we finally have GOOD news!!!  

Banks are looseing up and it is getting easier to qualify for mortgages. Jumbo money ( loans over $417,000) is available up to $3,000,000.00 with rates as low at 3.00% . Lot loans, construction money and second mortgage are now available again with many lenders at excellent rates. Rates are at a all time low with a 30 year fixed rate at 3.875%.    

If credit is a issue and you do not have a large down payment than FHA is available with a down payment as low as 3.5%  Other government programs are now available to help people with no down payment. USDA and VA loans are excellent mortgage products for that first time home buyer. "

Buying a home is a BIG DEAL. Unlike buying a pair of shoes, a contract to purchase real estate is a legally binding contract that can be enforceable even in the event of death.  So, do your research, and when you are SERIOUS about buying a home, start with pre-qualification. Your REALTOR will take you seriously and so will the seller of your dream home!

If you need help with financing your home in the Pawleys Island area, contact one of these fantastic professionals:

John Faiella, Gateway Mortgage Group

843-864-4253

john.faiella@gatewayloan.com

Ryan Heinemann, First Home Mortgage

843-602-6861

rheinemann@gofirsthome.com

Leigh Reid, First Trust Mortgage

843- 241-5628

lreidhope@ftmhome.com

Happy House Hunting!