2018 GUIDE
How to Buy CHARLESTON Everything you Need to Know When Buying in the Holy City
B U Y I N G A H O M E is one of the
most exciting experiences that life has to offer. But there are numerous things to consider – from neighborhoods to amenities to floor plans and price, and many decisions that need to be made along the way. Our guide to How to Buy in Charleston will walk you through some of the things you need to know that, as an informed buyer, you’ll want to consider. Charleston offers a wealth of options for residential buyers, from beach front cottages with views of the Atlantic, to Charleston Singles in the downtown historic district, classic lowcountry homes tucked along tidal creeks, and quintessential brick bungalows in the trendy Avondale neighborhood. The choices seem almost limitless.
WELCOME TO CHARLESTON, SC
The #1 City in THE WORLD As voted by Travel + Leisure in 2016
What's Your
CHARLESTON LIFESTYLE?
Living in Charleston isn’t so much about a location as it is about a lifestyle. From a beach front cottage with sand on the porch, to a sea island plantation surrounded by live oaks, living in Charleston is the stuff dreams are made of. Make yourself at home … and let the good life begin.
HISTORIC
BEACH
From elegant downtown mansions to ancient plantation homes, Charleston provides a lifestyle rich in American history.
For those who desire a beach lifestyle, each of Charleston’s barrier islands has a distinctive vibe all its own with miles of sand & surf to explore.
GOLF
VILLAGE
Charleston’s semi-tropical climate means golfers can be on the course every day of the year. This lifestyle is rich with amenities and social events.
There’s an old-fashioned feel with white picket fences covered in Carolina jasmine, nights filled with fireflies and 4th of July parades.
URBAN
SEA ISLAND
The lifestyle choice of those who love the buzz of Charleston’s Upper King District and access to the trendiest cafes & coffee shops.
Fishing, crabbing, & kayaking in a maze of title waters mark the laid back lifestyle provided on these beautiful Sea Islands.
PART ONE
Making an
OFFER
A Look at the Typical Offer Process
№ 01
DETERMINE PRICE
After your agent has done a Comparative Market Analysis (CMA), thoroughly reviewing activity of sales in the neighborhood including pending, currently active, or sold, you and your agent can determine a fair but competitive price to offer.
SUBMIT OFFER
Your agent will submit an Offer on your behalf to the seller’s real estate agent, along with the presentation of your financial qualifications. This may be done verbally or in writing. An expiration of the Offer will be specified on the contract. If there will be an extension to the Contract, it must be specified.
№ 02
№ 03
CONSIDERATIONS
In Charleston, additional consideration must be given to securing the proper documentation that may affect your offer including taxing structure (primary home vs. second home), insurance, flood zones (if applicable), flood insurance requirement & Elevation Certificate.
PRICE NEGOTIATIONS
The seller may accept or counter your Offer as part of a price negotiation. Sometimes this occurs multiple times. There are instances in which the Buyer or the Seller will counter with a “best & final” offer.
№ 04
№ 05
MULTIPLE BIDS
In a situation in which the Seller has received multiple bids, your agent will work with you to submit the highest and best offer that you are comfortable with.
AGREEMENT
The conclusion of the process will result in agreement upon the price, terms and closing date.
№ 06
№ 07
CLOSING DOCUMENTS
The Buyer’s Agent and the Seller’s Agent will need to identify and engage capable and experienced real estate attorneys early in the process to prepare the Closing Documents, title search and be provided a copy of the Contract of Sale.
PART TWO
№ 01
their Realtor. These typically include:
№ 04
SIGNED CONTRACT
• Proprietary lease or offering plan (if it’s a Rental property) • The neighborhood’s HOA or Condo docs and/or Covenants & Restrictions • Contact information for the Architectural Review Board if approval is needed for modifications in that particular neighborhood.
OFF TO SELLER
Following your Realtor’s advice and guidance, you will sign the Contract of Sale, after the facts of the Contract are outlined, you have a clear understanding, and if it meets your ability and willingness to execute the terms.
Making an
The contract and proof of deposit of escrow funds received are forwarded to the Seller’s Realtor, who will obtain the seller’s signature.
№ 05 EARNEST MONEY
OFFER
№ 03 DETERMINING EARNEST MONEY
If Your Bid is Accepted: Entering the Closing & Contract Stage
№ 02 DUE DILIGENCE
The Buyer’s Agent will exercise due diligence by asking for certain key documents from the Seller or
At the signing, it is typical to present a deposit that will be held in Escrow called “Earnest Money deposit.” Legally, there is no set amount required, however your Agent will advise you accordingly to what might be considered fair and appropriate. Typically, a generous Earnest Money deposit shows sincerity and good faith and puts the Buyer in a strong negotiating stance.
Your Earnest Money deposit can be held in the Seller’s or Buyer’s Agent’s escrow account until the closing date. Normally, any interest earned follows the principal.
MORE ON NEXT PAGE
What Goes
Seller, will be specified on the contract or, conceivably if it is an all cash offer.
in a
CONTRACT
The purchase price of a Contract is always contingent upon financing if there will be a mortgage on the property. If financed, the contract will also be contingent upon “Appraisal value.” The lending institution will select & order the appraisal. The Loan specifications i.e. if it’s for example: 80% lender financed & 20% cash from
Transaction costs will be specified on the Contract, including Seller contributions. This could include: private/ public transfer fees, capital contributions, estoppel fees or similar fees paid to a property owner’s association. Typically, Most HOA fees are part of the Buyer’s expenses.
A Repair Addendum or Procedure will be selected on the Contract and it will be specified typically that contract is “Contingent upon inspection.” After inspection
the Buyer’s Agent will specify items that they would like to have repaired & the Seller can agree or disagree to the Repairs. This is typically a part of the Contract negotiation within a specified time frame, in which repair costs are agreed to or a re-negotiated price for the purchase in agreed upon.
Transaction costs will be specified on the Contract. This could include: private/ public transfer fees, capital contributions, estoppal fees or similar fees paid to an owner’s association. Most HOA fees are part of the Buyer’s expenses.
Due to the prevalence of termite infestation throughout the south but particularly in the Charleston area, a CL-100 Wood Infestation Report is a requirement of the contract and both parties will agree whether it will be an expense of the Buyer or Seller (negotiable) and usually a minimal expense of $75-$150 depending on the property.
The request for a Home Warranty may be specified on the Contract and that is also an item that can be part of the negotiations between the Buyer & Seller as to whose expense it will be - if to be included at all. These typically cost $550-650.
№ 06 CONDOMINIUM
In the purchase of a Condominium or Townhome, the HOA may require a copy of a Lease if the property is being purchased as an Investment property and will be Tenant occupied. Sometimes additional deposits are required but this is separate from the Contract negotiations.
listed on Disclosure ie: appliances, water heater, AC unit, plumbing, etc.
behalf in the event of Absenteeism. Usually at that time unless other arrangements have been made, any and all keys, access fobs, mailbox keys, garage door openers are conveyed as well as Clear Title to the property.
CONGRATULATIONS № 08
№ 10
FINAL INSPECTION
After repairs have been made and prior to the closing, your agent will schedule a final walk-through inspection of the property for you.
№ 07 № 09 SELLER’S DISCLOSURE
A Seller’s Disclosure is a requirement by law in SC for a Seller to provide unless the property has been used a rental property and the Seller has no knowledge of functionality of each item
LAST STEPS
Attend Closing on specified date, sign all documents to include a final HUD (Settlement Statement) or have a Power of Attorney assigned to sign on your
PROPERTY TAXES
After closing in Charleston County and the surrounding counties of Berkeley and Dorchester you may be required to provide proof that you intend to reside in the property full-time and that you are not purchasing for second home or investment. This will dramatically affect the way the property taxes are calculated and the amount of taxes that are assessed annually.
You are a new HOME OWNER
$60
$500
$450
CREDIT REPORT
ATTORNEY FEES
HOME INSPECTION
assessed by Lender and usually cost $35 - $85
usually range from around $400 - $500
may be priced by square footage
4%
$30
6%
PROPERTY TAXES
TITLE INSURANCE
PROPERTY TAXES
for Primary Residences
between $20 -$40 and varies by company
for Secondary Residences
$30
$250
$450
RECORDING FEES
SURVEY
APPRAISAL
for Mortgage. Deeds are slightly less, ranging from around $10 - $20
a survey not always required, but usually ranges from $185 - $300
these are ordered by Lender and range from $300 - $600
THE NUMBERS
Estimated
CLOSING COSTS for Cooperative Buyers in Charleston, SC
The Luxury Simplified DIFFERENCE We set out to be different from other traditional real estate firms in Charleston right from the beginning. First, as real estate investors, building a real estate portfolio of our own of homes on the downtown peninsula. We studied the market intensely, became experts at market value, opportunity, and investment potential in a growing Charleston real estate market. We founded a construction company to keep costs in control and deliver uncompromising customer service. We added a real estate brokerage in order to share our expertise with clients seeking a home in Charleston and we launched a vacation rental management company after our clients asked for a way to continue their relationship with us. All of this designed with only one thing in mind – to be a singular resource for our clients. We aim to deliver an exceptional experience for buyers in the Charleston real estate market. Our agents offer in-depth market expertise and our heightened level of attentiveness helps us match buyers with homes that reflect their personality, needs and, above anything else, the Charleston lifestyle they desire. Our goal is to make the buying process as seamless as possible and our comprehensive, success-oriented approach ensures that clients return to us again and again. It is no surprise that the majority of our business comes from referrals.
Why Should You Use AN AGENT? Purchasing a home is more than just a real estate transaction, it’s an investment in the future. Making an important decision like this requires an in-depth understanding of the market, personalized service, attention to detail and follow-through. Your time is valuable and securing an important asset
LOOKING TO BUY?
such as real estate should be guided by the help of someone knowledgeable about the marketplace.
Luxury Simplified Real Estate 95 BROAD STREET CHARLESTON, SC 29401 843 853 6055 LUXURYSIMPLIFIED.COM
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