Myrtle Beach Real Estate - Five Things You Should Know by AscendWorks

Myrtle Beach Real Estate: Five Things You Should Know Within this publica.on, you’ll find important tac.cs you should know if you’re seriously considering investment in Myrtle Beach Real Estate. By now, you probably know that Myrtle Beach is one of the best real estate investments you can make on the east coast of the United States. Every year, families from all over the eastern part of the United States flock to Myrtle Beach to enjoy its spectacular tourist aFrac.ons, famous beaches, cultural landmarks and numerous aFrac.ons. Myrtle Beach is a great vaca.on des.na.on for couples, families, and just about any other kind of group-‐and not every traveler will want to stay in a hotel or condominium. Myrtle Beach real estate holds a lucra.ve opportunity for any interested buyer. If you’re thinking of buying real estate, there are some things as an outsider to the market that you may not ever consider. You’ll want to think about working with an experienced realtor who knows the area, what you should do with the property, and your qualifica.ons for a short sale – among other things. You may feel that you already have a firm grip on these components of buying real estate, but the answers you’ll get about some of these integral buying facts will vary based on who you talk to. A realtor outside the Myrtle Beach area may tell you something completely different about buying short sale property because they don’t have that knowledge of the area. Is your financial future really worth that kind of risk? At the end of the day, you need to be able to put your trust in a realtor who has your best interests first. Throughout this guide, we will give you .ps and tricks that will allow you to best understand how to locate a realtor who truly cares about your business, your financial future, and your property interests. Working with a realtor who cares about you and knows the area will have a huge impact on your future success, so it makes sense to check out your realtor carefully and develop a close rela.onship. We wish you the best of luck and success in your search, and hope the informa.on contained in this guide will help you!

Sincerely, The Hoﬀman Group

Tip #1: Hire the Right Agent Why is this so important? When it comes down to it, plenty of real estate agents will tell you they know the area, and may even be able to give you some great informa.on about local tourist aFrac.ons and the “best places to buy.” Truthfully, just because a real estate agent claims to “know” the area, that doesn’t mean they know what’s necessary to eﬀec.vely sell the property that will ﬁt your budget and purpose. Buying and Selling are Nuanced There are several par.cular nuanced factors inherent in selling real estate in any town. Par.cularly when you're selling condominiums, there is much to consider. A realtor should be familiar with the laws and regula.ons that are a part of buying and ren.ng property in Myrtle Beach. The condo market itself is par.cularly nuanced. Are you aware that buying a condominium may include certain fees – including associa.on fees based on the par.cular subdivision you’re buying it? There may be other fees imposed by the subdivision that your realtor may not disclose well into the buying process. Some of this could be because the realtor may have a good knowledge of the area, but not the regula.ons in place for some of the various subdivisions. So, how do you work around this? The easy answer is that your realtor should not only know in.mate informa.on about Myrtle Beach in general, but about condo community associa.on fees, taxes, and other related fees that apply to your situa.on. How can you be sure your realtor has your best interests in mind? 3

Ask Important Ques9ons. “What is your specialty?” is an important ques.on. “Everything,” is not an acceptable answer. Realtors tend to, or should, have one area they tend to focus on above all others. For the Hoffman group, it’s condominium sales. For other realtors, it may be something different. It’s important that you find a specialist to help you deal with the kind of property you’re looking for. This becomes even more important when you’re dealing with distressed proper.es. Short sales and foreclosures require someone who knows the lay of the land, the process as applicable to local laws and regula.ons, and what risks you as a consumer might be facing when shopping for distressed proper.es. If a realtor can’t help you with the important ques.ons, you can’t help them with your business. It’s that simple. Don’t just accept a realtor saying he or she is a specialist with condos, distressed proper.es or your special situa.on – make them prove it. In Hiring the Right Agent: •

Quiz your Agent: Have they worked with clients before who are in your unique situa.on?

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Do They Have a Specialty? If not a specialty, EVERY agent has something they may be more knowledgeable about or enjoy doing more.

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Do they Have Knowledge of the Area? Pick an area you’re interested in and ask about things like local aFrac.ons, subdivision fees, and more.

Myrtle Beach Attractions #1: Family Kingdom Kids and parents alike love a trip to the Family Kingdom. Located on Myrtle Beach’s popular Fourth Avenue, Family Kingdom is home to South Carolina’s oldest Ferris Wheel, as well as a merry go round built in the 1920s.

Open un.l late at night, Family Kingdom is a great place to revisit childhood .mes even as an adult. With great food stands, you can enjoy a funnel cake while the kids ride one of the park’s over 30 rides. A log ﬂume, .lt-‐a-‐ whirl, and modern rides mixed with an old style wooden rollercoaster deck the park. Carnival faire – including an excellent funnel cake – as well as fun carnival games with prizes line the parkway, and you can always enjoy the boardwalk and nearby shops while kids have fun at Family Kingdom. The park also happens to be walking distance from a number of popular hotels, making it an easily accessible and enjoyable stop for tourists. Find out more info at: hFp://www.familykingdomfun.com/

Tip #2: Know What You Want to Do With the Property “Rent It!” is the easy answer, but for most owners, that’s only half the story. You have several op.ons here. None are “right” or “wrong” op.ons; it depends on what the property, the situa.on, and your ﬁnances call for.

Rent It Out Full-‐Time If you decide to rent out your property 24/7, there are a number of things to consider. First of all, you’re likely living in a diﬀerent place, in another city. If this is the case, you’re going to need to hire a full-‐.me management company to take care of your property. You’ll need to budget carefully for a management company – in addi.on to other fees you’ll face from your associa.on. If you’re going to rent your condo out, you’ll need to consider how to charge renters in order to compensate for these types of fees.

Long-‐Term Rentals

You may also wish to consider a long-‐term rental. A management company will s.ll be necessary here – if repairs or u.lity issues happen on the property and you live far away, you’ll need management to be there 24/7. If a toilet backs up – even if you’re only a few hours away by car – you won’t want to get up in the middle of the night and drive to Myrtle Beach to deal with these types of rentals. Many homeowners in the Myrtle Beach area feel as if they can skimp out on management when doing a long-‐ term rental. Because cleanup won’t be needed aker a renter leaves, it seems like this could be something a new homeowner would pass on. Because something can always go wrong with a home or condo – and you will be expected to pay for it – it’s important to engage with management help you can trust. Hiring one management firm for all rentals can ensure that both long-‐term and short-‐term rentals are taken care of irrespec.ve of your situa.on. Weekly Rentals A weekly rental helps ensure that you can get your condo or home booked in blocks as opposed to scrambling to find renters night by night. Many home or condo owners prefer to rent their property out on a weekly basis for this reason. If you’re planning on ren.ng out weekly, a good realtor should have some recommenda.ons as to what management companies to look at, how to handle passing over keys and other valuable informa.on you may not consider at the outset. Second Home This is all quite a different story if you’re going to be using your property as a second home. There are plenty of families around Myrtle Beach who do this, and aren’t interested in giving the keys out to renters looking for a place to stay.

That being said, you s.ll do want to think about hiring someone to come and take a look at your house – especially during the winter or in the case of a natural disaster. It makes sense to pay someone a small monthly or even yearly fee to take care of this for you. There are trusted names in Myrtle Beach who oﬀer you this type of service, and an experienced realtor should be able to tell you more. Financing and Type of Property These are also important considera.ons. Will you be purchasing a condo or home, and what would work best for your budget and needs? What part of Myrtle Beach is the best to buy in at any given .me? Again, the special considera.ons that need to be given to buying distressed property are best addressed by a realtor who understands your par.cular needs and situa.on. You have more op.ons than you might if you just wanted to get into a house. Condominiums, beach homes, private lots – there are a ton of op.ons for you to consider. You have to think of an investment property of any kind – even a second home – as an addi.onal means to earn income as well as a poten.al ﬁnancial burden for you, and operate accordingly. It isn’t inexpensive to keep either a second home or a residen.al property that you rent out – you’ll need to work with a realtor to have all your t’s crossed when you make the decision to invest in a property. What Do You Want to Do With the Property? •

Think About Ren9ng. Whether you’ve made the decision or not, ren.ng out can be quite lucra.ve.

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Know What’s Involved: if you’re a ﬁrst .me property renter, what will ren.ng entail in your par.cular situa.on? Who will maintain the property?

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What About a Vaca9on Home? How will this aﬀect your current living situa.on and ﬁnances?

Myrtle Beach Attractions #2: Barefoot Landing If you’re looking for a Myrtle Beach shopping des.na.on with a liFle of something for everyone, Barefoot Landing is the place. Tucked into the quiet beach community of North Myrtle Beach, Barefoot Landing is an outdoor shopping mall situated in a quaint, outdoor selng modeled aker a small fishing village. In between shops are scenic walkways and bridges under which ducks, fish and other wildlife swim. You have the op.on of feeding the animals, taking a quiet stroll or watching the water in between shopping. When you are ready to shop, you’ll find some of the finest retail experiences Myrtle Beach has to offer at Barefoot Landing. Located along South Carolina’s Intercoastal Waterway, Barefoot Landing itself sits on a 27 acre lake. Scenic views alongside a heky collec.on of shops and fine dining, Barefoot Landing is one of Myrtle Beach’s best places to shop. Nearby golf expedi.ons make a day trip worth it for the whole family! To find out more about Barefoot Landing, visit: hFp://www.bflanding.com/

Tip #3: Know Your Credit One of the biggest scams you might know about in the real estate business has a lot to do with your credit. If you don’t have a rock-‐solid idea of your credit going into home buying, you may not have the kind of control over buying property that you might expect. You have to be aware of your credit score, not just with one bureau, but with all three. This means reques.ng copies of your credit score through TransUnion, Equifax AND Experian before property hun.ng in Myrtle Beach. You may actually be surprised -‐ a great score at one bureau can even out to be fairly miserable in another.

Your realtor should also be able to help you understand how your credit aﬀects the various ﬁnancing op.ons you may have available to you. You may be required to put down a certain down payment, or loan terms may be shorter depending on the type of property you want to buy and its purpose.

Condo-‐Tel A Condo-‐tel is a fairly new term in the real estate world compared to a hotel or condo. When you rent your condominium out with the inten.on of delivering a luxury hotel experience, you’re opera.ng a Condo-‐Tel. Loan terms and financing op.ons may be much different for a property that will be used as a condo-‐tel. For instance, typical down payments on a condo-‐ tel property run 25%. Aker the economy crash, some banks are now requiring 40% down on these proper.es. A condo-‐tel loan is typically shorter term, and you’ll need a higher credit score to be eligible for financing. 650 is typically the minimum credit score you’re required to have before you can get financing for a condo-‐tel, while 700 serves as the ideal score. If you’re thinking of buying a condo-‐tel, you may also have a cash op.on. Over half the buyers of a condo-‐tel typically choose the cash op.on, and put down cash. Because non-‐conforming loans are typically required to finance condo-‐tels, higher qualifica.on standards and a point to a point and a half higher interest rates are common. Residen9al Financing Financing for an actual residence in Myrtle Beach is a liFle different. Pre-‐approval is a necessity, so you may want to get this from at least one bank, then start shopping around. Many different programs allow as liFle as a 3.5% down payment, par.cularly for distressed homes. In a normal situa.on, you may expect to pay a typical 5 to 10% down payment on a residen.al property. Because interest rates are at all-‐.me lows, it’s a good idea to make sure you’re working with a good lender you can trust. The idea of residen.al property refers more to a second home than a property you may lease out, so your op.ons are different here.

Again, a good realtor will be able to help you take a look at some of your diﬀerent op.ons based on the type of property you wish to buy, and from there you will be able to make the best decision for your budget and ﬁnancing op.ons.

When It Comes to Knowing Your Credit, •

Get Your Credit Report. Get your report and start working on mistakes with all three bureaus.

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Talk About Financing Op9ons. These may be diﬀerent for distressed property op.ons.

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Get pre-‐approved. A pre-‐approval from one bank may cause other banks to follow suit in lending to you.

Myrtle Beach Attractions #3: The Carolina Opry As far as live music goes, the Carolina Opry is one of the best and brightest in South Carolina. Though the word “Opry” may evoke images of country music, the Carolina Opry oﬀers rock to pop to country to bluegrass. Make sure to check the schedule, as there’s something happening to accommodate every taste. The Opry building also showcases three other legendary shows – Good Vibra.ons, the Carolina Opry Christmas Special, and “Calvin Gilmore Presents the Light,” a light and music show geared toward music of several genres, from contemporary to classic rock to pop. Located on the Grand Strand, the Carolina Opry is conveniently located. With over 25 years on the Strand, the Opry is Myrtle Beach’s premier vaca.on des.na.on! Find out more at hFp://www.thecarolinaopry.com/. 10

Tip #4: Know Short-‐Sale QualiMications Many people who are looking to buy vaca.on or second home property in Myrtle Beach are looking to purchase as part of a distressed property situa.on – in par.cular, many people are looking for a short sale. If you’re unfamiliar with the idea of a short sale, here are the basics – a property owner who is facing a foreclosure situa.on or needs to get rid of property fast may opt for a short sale. When selling the property may actually not generate enough cash to pay oﬀ liens against the property, the bank may agree to release the liens and allow the short sale. This can be a very beneﬁcial situa.on for buyers who are looking to get a rental or second home property without having to spend a huge amount of money. There’s a lot to know and consider, and if you’re going through this process, you need a realtor on your side you can trust. It isn’t just about knowing the process itself – it’s about knowing short sale as applicable to South Carolina, and any city regula.ons. One thing many people don’t know about short sales is that some lis.ng agents don’t ever actually close those sales. The agent has to submit the short sale to lenders and broker with them on your behalf, so you have to make sure you’re working with a lis.ng agent that has your best interest in mind. A short sale package is not just any collec.on of important documents – you must have it completed in order to get the short sale going. Completed short sale packages should include: •

Payroll stubs from seller

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Bank statements and other applicable ﬁnancial informa.on from seller 11

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W-‐2s and all tax forms and returns

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Hardship leFer

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Financial statement from seller

Understandably, many sellers don’t want to get out of the distressed property and are wai.ng for last minute miracles or are just in denial. The result is an incomplete or slow-‐coming short sale package. Short sale does not mean quick sale for exactly this reason – the longer the seller waits, the less your chances of gelng that short sale. You don’t want to lose out on the house just because your seller is dragging his or her feet. Addi.onally, many people are looking to buy property in Myrtle Beach these days, so you should have some idea of the number of offers that are coming in. Realtors don’t have to disclose the number of offers coming in, but you should have some idea of these numbers to get an idea of whether or not you should keep looking. First offers are always typically below list price, while the second and third offer for the property will always be either on par with list price or just a bit more – think around $1000. Any offers aker the third will typically be for significantly more than the list price, so your offer should always be compe..ve. While it is important for realtors to operate based on a very par.cular code of ethics, they’re not always going to do that. Making sure your realtor knows his or her stuff is important. You can test your realtor by making sure they ask you the right ques.ons, have a great track record and can get specific about Myrtle Beach’s subdivisions, best places to buy, and how best to deal with local regula.ons and type of property. Finally, doing your research on short sale and making sure your realtor knows his or her stuff will save you a lot of heartache and hassle. The short sale process may seem easy, but you’re dealing with someone who is oken.mes losing their home, so having realis.c expecta.ons is very important here. Your realtor should be able to set expecta.ons based on the amount of .me the house might take to close, other offers, and important informa.on you need to know about the short sale. If Considering Short Sale: •

Know What a Short Sale is. Understand the ins and outs of the process. 12

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Begin to Research the Short Sale Process with the help of a trusted Realtor.

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Know what’s Involved in a Short Sale from start to ﬁnish.

Myrtle Beach Attractions #4: Ripley’s Aquarium Ripley’s Believe It Or Not’s and related aFrac.ons can be found in most major US ci.es. In Myrtle Beach, Ripley’s Believe It Or Not is paired with Ripley’s impressive Aquarium display, located in Myrtle Beach’s Celebrity Circle. Ripley’s is the type of aFrac.on that never seems to get old, and there’s something new every season. With displays featuring aqua.c life and landscapes from the Amazon, the Coral Reef and more, Ripley’s Aquarium is a great learning experience and entertainment adventure for children and adults alike. One of the more famous exhibi.ons at Ripley’s Aquarium is the weekend Mermaids show. A collec.on of lovely ladies decked out as mermaids perform impressive under and above-‐water stunts that are well worth the .cket price. Ripley’s also allows you to sign up for an “Aquarium Adventure,” in which scuba gear is provided and children and adults become part of an underwater adventure. You can also sign kids up for fun children’s camps, including preschool programs, Saturday morning camps, or in-‐home educa.onal programs. Ripley’s is another amazing adventure in Myrtle Beach with a liFle something for everyone, regardless of age.

Tip #5: Have an Insider Mindset One of the most challenging aspects of buying a new home of property for many people is all about knowing the market. Think about it this way: real estate brokers are at this gig forty hours a week at minimum, so of course they’re going to know the market. Should you put your trust in a realtor, or should you educate yourself about the market and some op.ons that are out there for you? The right answer is, you should do a liFle bit of both. Gaining insider insight will help you understand the right ques.ons to ask your realtor. There’s nothing wrong with a liFle self-‐educa.on – knowing more about what’s out there will help you ﬁnd the best realtor for your situa.on.

You may not know this right now, but prices for Myrtle Beach housing are currently at 60-‐70% below prices just 3 or 4 years ago. The economy is improving, and we can’t expect these lows to s.ck around forever. Realtors in Myrtle Beach know this. They also know that they need to balance closing well on a house with providing great, trustworthy service to clients. A poten.al buyer who knows his or her stuff is not a burden, but an asset to the process. This is where an investor mindset comes in. Par.cularly if you’re buying to rent out a property, you have to really sit down, crunch numbers, and consider where that rental income is going to get you compared to the money you’re spending on the house. Think about what you’ll have to do to break even, get ahead, and how you’ll deal with a mortgage during the off season. You’ll have to think about what to charge for rent and how to factor upkeep and associated expenses throughout the year. A realtor can help you with this process by lelng you know what you should expect, but the real number crunching – what you can and can’t afford, and how taxes, fees, upkeep and expenses factor in – all that has to come from your own calcula.on. Know this: Myrtle Beach is ranked the best beach in the United States by USA Today. It’s ranked the #6 beach in the en.re world! Throughout the year, 14 million visitors flank its shores, while only 40,000 actual residents live in the Myrtle Beach area. 14

Right now, prices are at an all-‐.me low. The reality is, this may be the deal of a life.me. You probably love going with your family to the Beach each year, or maybe you already live there. You’re seeing a lucra.ve investment opportunity, and you’re 100% right – this is a great way to supplement your income. You just have to do it right. “Doing it right” means thinking like an investor – how much can you aﬀord? What would you need to bring in based on how you plan to use the property once it’s purchased? All this factors in. It’s perfectly okay to approach your realtor and discuss the associated fees and what you can aﬀord with how you plan to use the property. If your realtor is willing to meet you halfway (and they should be), he or she will be able to give you .ps based on your unique situa.on. When you look at property buying – par.cularly Myrtle Beach property buying – as an investor, you give yourself the opportunity to consider a unique situa.on that could really give you a great extra income and ALSO allow you the opportunity to take advantage of a family vaca.on hub yearly that’s uniquely yours. We all know by now that Myrtle Beach is a great vaca.on des.na.on – so why wouldn’t you want to jump on this opportunity?

At the same .me, you have to be smart about how you’re planning to execute all this, and you can’t rely on a short sale or distress process being a quick one. You have to truly know your stuﬀ -‐ and the right realtor should be willing to meet you halfway. To Have an Insider Mindset: •

Think Like an Investor.

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Do Your Own Research in conjunc.on with your realtor.

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Become Familiar with Myrtle Beach proper.es and know what’s out there for short sale

Myrtle Beach Attractions #5: Horseback Riding If you’re fond of horseback riding – or if you’ve never done it before and are looking for a great experience – horseback riding on Myrtle Beach is one of those “have-‐to’s”. Best of all, if you have absolutely no or limited riding experience, you can hire trained guides at a number of facili.es. One of our favorite places to visit is Horseback Riding of Myrtle Beach. With this and similar companies, you can actually take the horses out on the beach for the whole family. The experience is relaxing and engaging, you can typically go fairly far and take an excursion that lasts several hours, and you are oken able to ride at your own pace. Best of all, group memories are kept with a set of unique photos documen.ng the experience. Friendly tour guides who are used to working with riders of all levels lead the way, and horses don’t mind galloping through the surf if you’re in the mood for a liFle splash. Calm, friendly horses are taken out by thousands of tourists ever year, so you can be sure your animal, the tour guides and the experience will be calm, safe and memorable. For more informa.on on Myrtle Beach horseback excursions, visit hFp://www.myrtlebeachhorserides.com. If this company doesn’t suit your fancy, a simple Google search will provide you with many more horseback riding companies that will allow you to take out horses or will give lessons. Best of all, most of these are right on the beach!

Final Thoughts People love coming to Myrtle Beach. The night life is incredible, and there are so many things to see and do that one can spend weeks without a dull moment. And if you do decide you’re in the mood to sit out on the beach and relax, it’s right outside – all day, every day. If you’re thinking about buying property in Myrtle Beach, you’re considering inves.ng in a piece of property that can provide a fantas.c secondary income for your family. It’s a great idea. But – before you consider this idea further and get serious about it, there are some things you need to think about. We’ve addressed them in this document, but a slight recap: •

Do you have a realtor who is knowledgeable of state, local and subdivision laws that may aﬀect buying or the amount of fees to be paid monthly/at sale? 16

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Have you considered what you should use the property for? Does your realtor have some ideas based on your situa.on about what might be the best use?

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Have you considered that you may need to research a management ﬁrm who can help you with monthly or even weekly upkeep of a vaca.on rental property?

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Has your realtor discussed property taxes and other related extra expenses with you?

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Are you interested in short sale or distressed buying opportuni.es? If so, has your realtor gone over your separate op.ons with you to help get you into the best situa.on?

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Have you “thought like an investor”, and done the research necessary to determine whether or not a vaca.on or rental property in Myrtle Beach is the right investment for you?

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Have you met with a realtor who understands the local landscape, “condo-‐tels”, and can give you insight on which property is right for you based on your needs and what’s available locally?

A realtor isn’t the beginning and end of your educa.on and search for a great secondary property to buy, but he or she is such an important part of your process that finding the right realtor is cri.cal. There are tons of other op.ons for finding great property as well as becoming acquainted with some of the great tourist places at Myrtle Beach. The five we’ve discussed here are only a few – there are many great opportuni.es both to invest in a great property as well as show your renters a great .me at Myrtle Beach!

Best of luck in your search – we’d love to be the team that helps you!