My opinion: In order for a group of investors to plunk 130+ million to build a major project like this says 2 things. One, they have done their homework and feasibility studies to know when to start this project and Two, they know NOW is the time build.
Interesting that these investors who are VERY wealthy decided to do this.
Does it tell you anything?
Read the article below from the Sun News
116-condo luxury tower project gains MB go-ahead
Investors bet that sales will perk up soon
By Lorena Anderson - landerson@thesunnews.com
A swank condo project at 77th Avenue North and Ocean Boulevard in Myrtle Beach that languished for more than a year and a half with no financing is now moving forward.
Developers received their building permit Monday for The Riviera: an exclusive, gated, 116-condo tower they hope will attract upscale buyers to units as large as 4,900 square feet that could sell for as much as $2.5 million.
The Concord, N.C.-based Riviera Myrtle Beach LLC group is behind the project, but who’s behind the corporation?
Partner Joe Untz declined to say.
Michael King, who marketed the project a year and a half ago but is no longer involved, said he understood the $130 million project involves a large conglomerate of investors.
“It’s a pretty bold action to go ahead and build assuming that by the time it’s done, the market will have turned around and people will be ready to buy,” said architect Tom Pegram, who drew the building’s plans.
The Riviera project stalled when developers didn’t get the 75 percent presales that banks usually require. Construction had been scheduled to begin in January 2007 on the 7.5-acre property that used to house the city’s Ocean View Memorial Hospital.
In 2000, Pegram said, plans were drawn up for a 112-unit tower called The Venice, aimed at wealthy, permanent home buyers. But that project failed because developers couldn’t sell enough units.
The next incarnation, the Tuscan Square, proposed in 2002-03, would have had condos, shops and offices, but Pegram said the developer wanted more units, some of them for vacation rentals - a use the city zoning prohibits in that area. Neighbors complained about the project and it, too, fell apart.
In 2006, developers proposed The Riviera, which gained Community Appearance Board approval but lay dormant until now. The appearance board approved the same plan it OK’d two years ago again last week, with a slight change in the color of the building.
Pegram said neighbors liked Riviera plans better than those for Tuscan Square, but not all of them are happy.
“I don’t like it,” said Maggie Stettler, who lives across 77th Avenue North from the lot where the project will stand. “I think it’s a monstrosity that’s unnecessary on that piece of property.”
She said she’d rather see something that looks different.
“Why can’t we have something that when you drive by, you say ‘They really made the best use of that property,’” she said.
Pegram & Associates has designed a building that at its center stands 13 stories high. It’s U-shaped, with the bend facing the ocean, and each side steps down with fewer floors. There’s ground-floor parking, a first-floor lobby and indoor swimming pool. The smallest two units are about 1,800 square feet, and the rest start at about 2,100 square feet and go up in size. The biggest is 4,962 square feet. Pegram said developers are hoping to get $600 per square foot for the units.
Untz declined to give any start date for the project, but he said it will be this year, and the build-out should take 18 months.
Though he declined to answer several questions, including how the building will be marketed, he said he will be willing to talk about those issues “soon.”
“I will say that we are 100 percent sure this project is going to go forward,” Untz said.
Contact LORENA ANDERSON at 444-1722.
I just posted one of the most energetic company videos I have seen in a long time. You can check it out on (the soon to be largest) real estate social network RNetlive.com.
At this point I don’t know if this new website is going to work for you but you could not have picked a better time to join.
I have started a social real estate network for people in the industry. Why? The truth is that there are a number of good networks out there but none that I thought were great. They all have things that stand out but nothing grabbed me and said “you need to be here”. Myspace, Facebook are good but they are focused to EVERYONE from musicians to grade school children. Active Rain is another good site and focuses on the real estate industry but I found the menuverability somewhat difficult, and not real user friendly and until recently no video feature. Not sure I like it that much either. We all know that video is where our industry is heading for exposure. Zillow, Trulia and all the National Real Etate Companies have awesome features but there again, not what I was looking for.
I wanted a true NETWROKING website where people in our industry can collaborate, share ideas, get exposure, send and receive referrals, post videos, make friends, build relationships, join like minded professionals looking for the same, start a forum, start your own group, post pictures, share your favorite music, meet new people, the list goes on.
Wouldn’t it be nice to start a forum and ask other agents across the country what is working for them. Maybe it’s how to work FSBO’s, get listings, sell propoerty faster etc.
I encourage you to take a peek at the site, join if you fell it’s for you and start adding stuff.
Application volume was pushed higher by a 12 percent jump in purchase applications. Refinance volume fell 1 percent, and accounted for 69.2 percent of all mortgage applications.
The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.
An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 1,086.6 means mortgage application activity is 10.866 times higher than it was when the MBA began tracking the data.
The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about half of all residential retail mortgage originations each week.
Application volume increased as interest rates were mixed. The average interest rate for traditional, 30-year fixed-rate mortgages increased to 5.61 percent from 5.6 percent. The average interest rate for 15-year fixed-rate mortgages, an option popular for refinancing a home, increased to 5.09 percent from 5.04.
The average interest rate for one-year adjustable-rate mortgages fell to 5.62 percent from 5.7.
This is my favorite new community for many reasons, I will share with you over the next few weeks more and more on this secret private gated community.
Embodying a traditional neighborhood ambiance, Woodland Valley residents will take pleasure in sidewalk-lined streets, antique-style streetlights and security behind private gates. All custom-built homes will typify front porch living, as seen through the standardization of modern Lowcountry architecture. Utilizing the latest technology, the entire community will be equipped with “Fiber- to-the-Home” wiring, which will provide seamless integrated control of security, phone, data, audio and video throughout your home.
The Grand Amenity Center, available to all residents, will feature a state-of-the-art fitness center, men’s and women’s locker rooms, saunas, a Junior Olympic-size swimming pool, hot tub, kiddie pool, DecoTurf ® tennis courts, an eight-acre lake and more.Woodland Valley’s secluded Lowcountry haven sets the stage for a lifestyle that inspires rejuvenation. Nature walking trails throughout the community’s 100 acres of conservation area provide an intimacy with nature. Priced from the $70,000s, generous homesites vary in size and offer golf, conservation and/or water views.
Our 2008 kick off incentive is a 2 YEAR - NO PAYMENT Deal*
check out the website at www.woodlandvalleysc.com
I will continue to update you all on the progress.
*contact us for details prices and terms subject to change anytime. Its not realy a secret but not that many people know about it just yet.
I would first like to take a moment to thank everyone for all their efforts and hard work put forth this past year. We all know this past year was a challenge to say the least. The key word there is this PAST year. It is behind us and it is now just another chapter in our book. I can’t speak for everyone but I definitely learned a lot this year. I look at it as a stepping stone, and it prepared us for the future.
I am very excited for this upcoming year in real estate. In a moment you will see why. As we end this year I encourage everyone to take a look at what this upcoming year will offer. Set some goals that you have to accomplish and write them down. Look back on the goals you had last year and see which of them you achieved. I didn’t hit all of my goals, but I got close. If I hit them all I would not have set them high enough. One of the most productive things that have ever happened to me occurred this year. I want to share this with you. Sometime in June I got the best advice of the year, possibly in my lifetime, on goal setting. Here is what I was told to do - Every Sunday write down two business goals and two personal goals I wanted to achieve by the end of that week. I encourage you to try doing the same. If you are able to do this every week you would have accomplished 104 business goals and 104 personal goals for the year. You want to talk about experiencing fulfillment, this is it.
Ok now on to my year end- state of the union for 2008. As I said earlier I am excited for 2008 for a number of reasons.
1. The past year the media has been beating us up pretty bad, and I don’t think it is over but I believe it will not sound as bad, here is the reason why. The data they have been using is comparing year over year large percentage drops. Well of course that is the case because we have come off of a ramp up of great years back to back for quite some time. Well this upcoming year the numbers are going to reset and they will be comparing them to the not so good percentage numbers of 2007. This is going to help us out after a few months.
2. Builders have stopped building so the inventories are going to come down. The supply and demand theory is in effect here. For those builders reading this don’t go out and start pulling permits until we start yelling for inventory. You will hear it from us loud and clear as you did in 2005.
3. The feds are keeping a close eye on the market and realize that they need to help out the trouble areas as best they can. The good news is they realize it, now they need to execute a win-win to solve it.
4. The interest rates are at an all time low and should continue to be for a while.
5. Builders/Developers are offering some great incentives and price reductions to move the inventory.
What should we expect this coming year in real estate?
Well you have all heard me say that I wish I had a crystal ball, and now more than ever would be a good time to have one. Let me tell you what I see going on.
The internet is a reality. There are people still saying it is something to look into, I am saying if you are not onboard with the internet in a very big way already you need to consider yourself in the stone age. Industry experts though it was something that would start to catch on soon. I think it has been here for a while and people were just acting as if it were not a big deal because they were not prepared. Let me tell you where it will be this upcoming year. It should be your number one priority. There will be the formation of online internet counselors that do nothing but answer questions and help guide the buyers in the home buying process. They will be like a virtual sales agent. There only job will be to get the prospect on the other end to know everything they need to know and to set the appointment. It will make the on-site sales agent’s job easier because all the discovery work about the area will most likely be done. This prospect will be qualified and have only 2-3 places they want to look at if not less. This makes the online counselor’s job very important.
You will also see a lot to do with web 2.0 and blogging. If you are not familiar with this I suggest you wiki it. If you don’t know what a wiki is call me and we can set a time to discuss it. See what I mean about how the internet should be your number 1 priority.
The trends for 2008 are going to focus on functional kitchens, smart homes (technology) mainly internet, outdoor living spaces will be big, green building is a buzz word now but will find its way into the market sooner than later, the color pallet will be artesian hues which ties into the outdoor living and green building.
People are asking for homes to be finished (meaning nice trim packages, decent appliances and all of them, Formica is dead, they want at least a solid surface countertop, and storage space) What are they willing to pay? Nothing more - They expect this now and probably will for some time, they see that these “add-ons” are being given as incentives to buy today at a good price. Expect this in the future too. This is just a heads up for you builders so get prepared for when the market is back in your favor.
Finally, if all goes as expected we will see the market pan out for us. Meaning the media stops slamming us, feds keep us in check, no major storms, etc.
I seem to be getting this question a lot lately. More these past three weeks than in the past 3 months combined. Why is this? Well, this is happening for a number of reasons. First of all, people are interested in buying property in Myrtle Beach. Secondly, they are realizing that we are at a point where the deals and incentives are the best they have ever been in the Myrtle Beach real estate market. Lastly, the rate to borrow money is considerably low. When you combine these three key reasons the smart buyer knows now is a good time to buy.
I have been living in the Myrtle Beach area for over 11 years and have never seen such good deals. For the investor who missed the crazy appreciation days in 2005 your opportunity has come again. The pricing is back to the levels of the pre condo boom. For new home buyers the builders are offering fantastic incentives. I have seen some communities where they are giving away Mercedes Benz and Cadillacs. The point I am trying to make is that the market is prime for buyers. I look forward to keeping you informed on the Myrtle Beach Real Estate Market, if you have any questions don’t hesitate to email me.
This article nails it, I get this question everyday and I concur 100%
Smart Time to Buy a New Home?, Yes or No –
The good news about today’s housing market
Dallas, Texas / July 1, 2007 – Journalist Laurie Ivy, of Ivy/Seamans Communications, explores the myths surrounding today’s housing market with help from public homebuilder chairman and CEO Steven J. Hilton.
L.I.: Mr. Hilton, we hear a lot of publicity these days about the housing market, and there doesn’t seem to be much good news. Would this be a good time for prospective buyers to sit on the sidelines and see how the situation plays out?
S.H.: Not at all. With the current market conditions, this could be one of the very best times for many buyers to either buy their first home or move up to the home they’ve always wanted. This is truly a buyer’s market. Buyers have more choices, both in the sheer number of homes as well as the features within those homes. Interest rates are still hovering around 40-year lows, and builders are offering unprecedented incentives to reduce their inventories.
L.I.: I keep hearing about a housing bubble. How does that affect me as a prospective homebuyer?
S.H.: Some areas of the country have had phenomenal appreciation over the past few years, and they’re now going through a housing correction. But you have to remember that real estate is very localized. The old adage “location, location, location” is a fact. Even within a city, there will be some homes in very high demand, while others are appreciating at a much slower pace.And most real estate is purchased for long-term use. Historically, over the long term, housing has always appreciated.
L.I.: From what I read and hear on the news, it sounds as if this is a terrible time to buy a home.
S.H.: This is a fantastic time to buy a home. Depending on your location and the state of your home, it can be a challenging time to sell a home. But even if the real estate values in your community are not as strong as they were a year or two ago, you may still be better off buying your new home now. Most people move up to a more expensive home. Even empty nesters, who want to reduce their square footage, typically will move to a smaller home that is more expensive because it has the latest in designer features.The critical number isn’t the selling price of your existing home. The number that counts is the difference between the sales price of your existing home and the purchase price of your new home.For example, let’s say you live in a $200,000 home, but you want to move up to a $300,000 home. That’s a difference of $100,000. Now, let’s assume that home prices in your community have declined by 10%. That puts your existing home at $180,000, and your dream home at $270,000, a difference of $90,000, and a savings of $10,000. So you are better off buying now, before the market picks back up, because your dream home is more attainable under the current market conditions. Plus, when the market picks up, you may also benefit from being in a bigger home bought at a lower price.
L.I.: An average appreciation rate of 5% doesn’t sound that impressive. Wouldn’t it be easier to build wealth through the stock market?
S.H.: Buying a home gives you the ability to build equity and benefit from potential appreciation by leveraging a minimal investment. For example, if you purchased a $250,000 home with a $10,000 down payment and the home appreciates 5 percent during the first year, the home would be worth $262,500. That’s a $12,500 gain on a $10,000 investment. How many investments do you know that could offer a return like that? And give your family the enjoyment of living in a new home at the same time?L.I.: What about interest rates? Are they on the rise?
S.H.: Interest rates fluctuate greatly, but it does appear as if they are increasing. However, interest rates today are still hovering around the lowest rates of the past 40 years and are a full two percentage points below the average interest rates paid by mortgage borrowers during the past three decades. Because the rates are so low, there is a likelihood that they will increase. Even if interest rates are a little higher than they were a year ago, you are better off buying now while home prices are low. You can always refinance if rates decline in the future. The combination of low rates and low prices results in lower monthly payments, and presents a unique opportunity for today’s buyers.The other advantage of buying from a national new home builder like Meritage is that we have a stable of preferred lenders, which gives us the flexibility to offer our buyers special financing incentives and customized programs tailored to your specific needs.
L.I.: With the current market conditions, is renting a better option than buying?
S.H.: Homeownership continues to be the American dream, and for good reason. The homeownership rate has generally been rising through history and is currently close to its all-time high, with almost 69 percent of all US households owning their home. The number of US households is expected to increase 15 percent during the next decade, creating a continued high demand for housing.Owning a home is the number one way that most US households build wealth. On a national level, home appreciation has historically risen 5 to 6 % per year, which means the value of home doubles every 13 years or so. The national median price of homes bought ten years ago has increased 88 percent.Not only does owning a home provide immense personal satisfaction, but it also locks in the cost of shelter. Rental rates continue to increase. If you rented a home or apartment, your rent could increase 5 to 10 percent per year, or as much as 30 percent in three years. Renters don’t receive tax benefits, nor do they benefit from appreciation.If you’re trying to buy your first home, it’s not wise to delay your purchase. Construction materials may continue to increase in price, which means home prices will continue to increase. You’re better off buying a new home now with fewer bells and whistles from a quality builder so you can benefit from today’s low prices, favorable interest rates and future appreciation potential.
L.I.: I keep reading about foreclosures. Would I be better off buying a used home that’s going through foreclosure or even a used home from a really motivated seller?
S.H.: A new home from an established national builder offers both financial and aesthetic advantages. A new home is covered by a warranty, and everything in it is brand new, such as appliances, heating and cooling system, wiring, plumbing, etc. Part of the cost of owning a home is the purchase price, but equally important is the operating cost. A new home is built with the latest in energy-saving features, such as lowE double-paned windows, state-of-the-art insulation, and high-efficiency environmentally friendly climate control systems. These features can dramatically lower your monthly utility and maintenance expenses. And, as I mentioned earlier, national new homebuilders, like Meritage, can often provide their buyers with favorable financing plans that result in lower monthly mortgage payments.From an aesthetic standpoint, a new home includes the latest in design trends, such as gourmet kitchens with granite countertops, master baths with spas and palatial closets, game rooms, media rooms, studies and more. In many cases, you can choose the amenities most important to you. Because of the economies of scale, national builders can provide these amenities at a much lower cost than if you tried to retrofit and remodel an older home, even one that was bargain-priced. Chances are, your remodeling costs will be greater than you imagine.
L.I.: But how do I know that I’m buying at the very best possible time?
S.H.: You can’t ever know that. It’s impossible even for the experts to predict the very lowest prices or interest rates. If you try to time the market, you could end up on the sidelines for years, watching your dream home get further and further out of reach. And home prices don’t necessarily move in unison with interest rates. Buyers who purchased homes in the early 1990s during the last big economic and housing downturn enjoyed some of the strongest gains in the past decades.All signs indicate that this is a buyer’s market. Homes are competitively priced, interest rates are favorable, mortgage financing is readily available, and there is a greater selection of homes in desirable areas than most of us have seen in our lifetimes. Job growth is predicted to continue, but at a level that is not expected to trigger high inflation rates or interest rates. Moderate economic growth, job creation and low inflation, combined with a true buyer’s market and an abundant choice of homes, makes this an ideal time to purchase a new home.
Posted on Wed, Aug. 08, 2007
Strand home prices slumping
By Jenny Burns - The Sun News
Home prices on the Grand Strand are now showing declines for the first time, according to July sales statistics from the Multiple Listing Service.
Analysts had been baffled for months about why the Strand’s home prices continued to show year-over-year increases.
An adjustment was inevitable, and some analysts say it could be a sign the bottom is near, while others are less certain.
Average single-family home prices in Horry and Georgetown counties fell more than 9 percent, from $294,135 to $266,926. The median price - meaning half sold for more and half for less - dropped about 2 percent to $220,000 from $224,155.
The good news is that stability in the market wouldn’t happen until this price correction showed up, said Tom Maeser, president of the Fortune Academy of Real Estate.
How long it will last is another question. Maeser isn’t sure how much longer, and Mark Vitner, economist at Wachovia in Charlotte, said the last few weeks of tightening in the lending industry won’t help things. Two of the country’s biggest home lenders have gone bankrupt and others, including HomeBanc Corp. have said they will not issue any more loans.
“I’d like to think the market is near bottom. We had projected that sales would bottom out this year, but the abrupt lending tightening means we could see more” sales drops, Vitner said.
Buyers will have a hard time finding interest-only loans and may have to put down at least 20 percent of the purchase price, hurting the price of a home they can qualify for. Rates on jumbo loans, which are often used to finance beach properties, have risen dramatically in the last week, he said.
“The pool of qualified buyers is smaller than it was a month ago and much smaller than a year ago,” he said. “We’ll see sales weaken over the next several months depending on how long this credit shake out takes.
“He’s even worried this could hurt markets such as Charlotte that have been bucking the trend with hot sales.
While Vitner does think we’re “very close” to the bottom - he says that just means that prices will stop falling.
“That doesn’t mean all is well in the housing market,” he said, because some buyers who have contracts on homes may not be able to get the loan they thought they could.
The price declines signal to Rod Smith, director of general brokerage at Coldwell Banker Chicora, that what he’s seeing in the market is having an effect.
Sellers are finally getting the message that they have to cut prices to sell. He says they’re either doing that or if they don’t have to sell now, they’re taking their homes off the market.
And with prices down, Smith says it’s a great time to buy.Sales compared to last year have continued to plummet, with home sales dropping 35 percent in July and condo sales dropping 29 percent.
Condo prices did not show year-over-year drops in July, but Maeser says those numbers are skewed by preconstruction condos -sold at 2005 prices - that are closing now. Plus, more higher-end condos are being added to the mix, so the overall prices do not give an accurate sense of appreciation.
“If I were to go into [condo] communities and look at prices, I’m pretty positive we’d see a decrease [in price],” Maeser said.Overall, Coastal Carolina Universityeconomist Don Schunk said prices will flatten or fall slightly, which will help trigger increased sales.In the long term, Vitner says Myrtle Beach’s appeal and retiring boomers will keep the market on the upswing.“There’s no question the housing market will recover. It’s just a question of when.”
By the numbers A look at single-family homes in 2006 and 2007Sales2006 | 5122007 | 333
Average price
2006 | $294,135
2007 | $266,926
Median price
2006 | $224,155
2007 | $220,000
Days on market
2006 | 144
2007 | 175
OK now lets really look at what is being said here. This is clear as day to me. It shows every indication that NOW is a great time for BUYERS to be purchasing except that today it is Really Really HOT outside. If the prices are not at the bottom then they are real close, if you want to try to get a better deal on your purchase just offer them what you feel comfortable with. Maybe you want to get a better price, ask them to pay some closing costs or even buy down some interest points to lower your mortgage payments. But NOW is the time to ask for it. Remember this is not negative news as some may percieve it to be. It is news that says “Hey look at what we can buy a property for NOW“. A REAL GOOD DEAL.
There are strategies to follow in closing a sale successfully. Yet some sales-training professionals and salespeople say that to learn specific closing techniques is to revert to an obsolete era of the sales profession. It has even been suggested that closing techniques are nothing more than customer manipulation.
This simply is not true. There are many components to closing a sale and not all of them occur at the time of the sale. For example, if you create a fabulous presentation with a good script designed only to close the sale, you are not seeking a relationship with the customer but merely a one-night stand because you are neglecting the importance of follow up. Then, you might manipulate the customer into making the decision that you want rather than the one that would best satisfy his or her needs. You may get them once, but will they give you referrals or call you again?
Some sale’s trainers believe that success in selling is a number’s game. If you make enough calls, a percentage of sales will almost occur by themselves. And they will. But think of all those sales you didn’t make that you could have IF you had closed strategically to a process.
Granted, we are closing sales differently today than in the seventies, eighties and nineties, but there are fundamentals that have always worked and will continue to work, culminating in great success in a salesperson’s career.
Relationship selling, partnering and consultive selling are valid, modern-day selling strategies. However, they certainly are not meant to supplant the time-honored skill of closing but rather to supplement it.
Some buying situations call for salespeople to operate on the premise of the one-time call and close. Others may require spending months or even years working with prospects to determine needs and build trust and credibility before closing the transaction. Regardless, it still comes down to gaining commitment and reaching the final agreement, which is closing the sale.
There are, in my estimation, these six basic critical steps to a sale:
- Meet and greet
- Discovery/qualification
- Presentation/demonstration
- Handling objections
- Closing the sale
- Following up and following through
If you carefully analyze the six steps, you will notice that every one requires specific closing techniques and skills. As each step is completed, the sale moves toward the end result.
When Vince Lombardi assumed the position of head coach for the Green Bay Packers, he was asked his strategy to turn around and lead the struggling team to its eventual number-one position. Mr. Lombardi replied, “I plan to lead by becoming brilliant at the basics.”
The basics for him were passing, running and kicking the ball. Regardless of criticism from skeptics, Lombardi never lost his focus. He coached Green Bay to five NFL titles, won two Super Bowls and died as NFL’s all-time winningest coach with a .740 percentage.
The basics for you as a professional salesperson are the six critical steps to selling. Like Lombardi, if you become brilliant at the basics – including closing – you, too, can reach the top.
You may spend a lot of time with a prospect, but in the end, if you do not close, you do not get paid. Closing is not an event that will occur on its own. Even if you have a phenomenal relationship with a prospect and you deliver an excellent presentation, you must be prepared to ask for the order.
You cannot delude yourself into believing that the presentation, numerous sales calls and a solid relationship are all that’s necessary to entice a prospect to buy. There must be that one final step that only you can initiate and complete. In any sale’s transaction, there must be closure before there’s a check.
I can not take credit for any of this post but I wanted to share this with you because I feel that this is one of the most important things we need to learn in sales.
