Sandy's Blog

Everyone who wants to buy real estate, especially in a coastal area, has an idea of the perfect property.  Many during the current market think that a foreclosure or short-sale automatically means they are getting the best deal so they are asking for a "fixer-upper".  The facts that those of us working in the Myrtle Beach area have discovered are a foreclosure or short-sale could be a new construction and if any foreclosure or short-sale was a purchase made during the "boom" in real estate they may be priced well above a similar property selling normally.

Custom all brick home with over 3100 square feet under roof on the Jack Nicklaus signature golf course at Long Bay Club.  Minutes from North Myrtle Beach a beautiful neighborhood of custom homes ranging from fifteen years old to brand new.  3 BR 2 BA Asking Price $269,000

Temperatures during the past few days have been about ten degrees above normal in the Myrtle Beach area and the humidity is even worse.  I doubt if it has anything to do with the weather but yesterday two families sent me an email requesting information on real estate for sale in South Carolina and North Carolina close to Myrtle Beach. 

Requests for information about real estate for sale in the Myrtle Beach area that are forwarded through one of the large real estate websites are numerous but rarely do you get a response from those who you send information.  That is why I have never paid to be on those type of real estate sites, but using the free levels of those sites, blogging through sources such as ActiveRain, and providing websites that actually try to provide information are paying off for me.

The two families I mention above emailed me and I sent them information within an hour.  Both responded, one has already provided the dates they will be in the Myrtle Beach area to look at real estate and the other is in the process of finding a place to stay while they look.  I just hope the weather is back to normal while we're out exploring but if not we'll spend extra time at the oceanfront condos letting the breeze keep us cool.  

Today one of the lenders who had originally called a condo complex a "condotel" decided to reconsider and the purchase is due to close within a week.  Thank heaven for common sense. 

Every Realtor helping condo buyers in a beach area where short-term rentals are allowed may encounter a last minute problem with the underwriters if a mortgage is involved.  Also with new Fannie Mae requirements condos anywhere in the country could have things pop-up that are unexpected.  In the past we would give our clients names of local lenders and it was up to the buyer to work out the details of getting their mortgage in place for closing.  Now it is still the buyers responsibility to obtain their mortgage but to avoid a lot of problems a buyer needs their own Realtor more then ever.  

Condo sales in coastal areas like Myrtle Beach have been hit hard not just by the economy but what has become a term we hear too often "condotel".  Lenders basically stopped making mortgage loans for any condo they considered a "condotel" and each lender had their own definition.  During the past year we had seen a few lenders return to offer mortgages to qualified buyers of what was considered a "condotel" so we say thank you to those lenders.

In the beginning of the "condotel" saga primarily high-rise condo buildings that had a Front Desk check-in and allowed rentals for a week or less were branded. The criteria expanded in so many directions that I won't take up your time trying to list what some lenders used to turn down a loan.

There have been some lenders who will make a loan on a particular condo building today but not tomorrow which has been a challenge for those of us who have people who want to buy a condo.  Recently a national lender didn't care that there was no front desk, no daily cleaning service, no on site restaurants, or any of the other criteria many had listed.  Also the fact the entire complex was primarily occupied by residents and second-home owners did not seem to make a difference because someone in the lender's underwriting department Googled the name of the complex.  Evidently at least one major lender thinks that if the By-Laws of a condo building or complex do not restrict short-term rentals and if even one person uses the internet to rent their unit themselves or has a rental company with a website handle their rental offering their condo for rent on a short-term basis the entire complex is a "condotel" because it showed up when Googled.