Realtors vote to require disclosure of short sales

Realtors vote to require disclosure of short sales

By Ashley Fletcher Frampton
aframpton@scbiznews.com
Published Nov. 19, 2010

Real estate agents must flag in the Multiple Listing Service database those homes that they expect to be short-sale transactions, local Realtor officials decided today.

The vote by the Charleston Trident Association of Realtors’ Multiple Listing Service board to mandate disclosure brings clarity to an issue that real estate agents have debated recently, as short sales have come to represent a growing and complicated segment of local home sales.

Short sales are transactions for which bank approval is needed because the offer does not cover the seller’s outstanding debt. The bank must agree to forgive some of that debt or work out an alternative payment arrangement with the seller.

Some agents have pushed for the Charleston Realtors group to require full disclosure so that buyers know ahead of time what they’re getting into, as banks’ involvement in a home sale can add time to the process.

Others have said that disclosing a short sale can invite lower offers; and that it can discourage some buyers and therefore isn’t the best way to market a home. Additionally, the question of whether a sale is a short sale depends on the offers submitted.

Some sellers, too, are reluctant to advertise publicly what could be perceived by neighbors and friends as financial troubles, putting the agents who represent them in a difficult spot, agents have said.

Under today’s decision, agents must disclose potential short sales in the section of the Multiple Listing Service database, or MLS, that only agents can access. The mandatory disclosure does not apply to the portion of the information about a home in the database that is available to the public, the Realtors group said.

The searchable public section of the MLS is what populates the listings on some agents’ individual websites.

“This decision puts the choice of public disclosure in the hands of the seller,” David Smythe, president of the MLS board, said in a statement. “Sellers will be required to disclose property as a potential short sale within the MLS; however, disclosure to the public will be determined by the seller and their real estate professional.”

The disclosure requirement applies to home listings that are “reasonably known to be a potential short sale,” according to the MLS board’s decision.

That means that if a sale, to the best of the agent’s knowledge, is going to be a short sale, it must be disclosed as such, said Meghan Weinreich, spokeswoman for the Charleston Trident Association of Realtors.

The definition isn’t black and white, but that’s the nature of short sales, Weinreich said. Sellers and their agents do not always know ahead of time how a deal will turn out.

“You can’t always know,” she said.

Weinreich said the decision is effective immediately, and it will be implemented once the MLS database is altered to include a short sale disclosure box in the agent-only section.

Reach Ashley Fletcher Frampton at 843-849-3129.

Mortgage rates fall to fresh lows this week

Mortgage rates fall to fresh lows this week

By JANNA HERRON, AP Real Estate Writer

NEW YORK – Rates on fixed mortgages dropped to their lowest levels in decades this week after the Federal Reserve unveiled a massive bond-buying program to help spur economic growth.

Mortgage buyer Freddie Mac said Tuesday the average rate for 30-year fixed loans fell to 4.17 percent from 4.24 percent last week. That's the lowest on records dating back to 1971.

The average rate on 15-year fixed loans fell to 3.57 percent from 3.63 percent. That's the lowest since the survey began in 1991.

The Fed detailed plans last week to buy $600 billion in Treasury bonds. On Wednesday, the central bank gave more details, saying it plans to purchase $105 billion in Treasurys over the next month. The extra demand means Treasurys will produce lower yields for investors. Mortgage rates tend to track those yields.

Mortgage rates have been at or near historic lows since April as investors, concerned about the health of the global economy, shift their money into Treasurys, pushing down rates on the bonds and consumer and business loans.

While more borrowers have refinanced their home loans, low rates have done little to boost the beleaguered housing market. Would-be buyers remain on the sidelines, too worried about their jobs or unable to qualify for a loan because of tighter credit standards. Others can't sell their own homes before buying another.

Home sales were the worst in decades this summer, and home prices fell in half of U.S. cities in the third quarter, the National Association of Realtors said Thursday.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

Rates on five-year adjustable-rate mortgages fell to their lowest level in at least five years. They averaged 3.25 percent, down from 3.39 percent a week earlier. It is the lowest rate on records dating back to January 2005.

Rates on one-year adjustable-rate home loans were unchanged at 3.26.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount.

The average fee for 30-year and 15-year fixed loans in Freddie Mac's survey was 0.8 point. It was 0.7 point for 1-year and five-year mortgages.

Original article

Is sexual orientation discrimination in housing legal? Maybe.

Is sexual orientation discrimination in housing legal? Maybe.
By Lani Rosales on November 9, 2010

Can landlords legally deny renting to a gay couple because they’re gay? Can a Realtor refuse to negotiate on behalf of a transgendered woman because she’s transgendered? Can a builder jack up the price of a home when selling to a bisexual male because they know he’s bisexual? Maybe- there’s a little bit of a grey area here.

If you’re a licensed Realtor, you should have memorized the Fair Housing laws prohibiting discrimination against anyone based on race, color, national origin, religion, sex, familial status or handicap. But nowhere in there does it mention sexual orientation.

According to the U.S. Department of Housing and Urban Development, laws are different from state to state and in some it is most certainly illegal for the real estate industry to discriminate, but in some states, the GLBTQ community is still legally discriminated against and refused real estate services and equal housing opportunities.

To go above and beyond local, state and national laws, Realtors have always upheld the National Association of Realtors’ Code of Ethics wherein Article 10 outlines the “Duties to the Public” which reflects the national Fair Housing law that forbids denying services for reasons of race, color, national origin, religion, sex, familial status or handicap. Nowhere in the code are Realtors required to serve anyone with sexual orientation disagreeable to them. Until now…

According to the NAR, the Code of Ethics Article 10 has been amended:
Article 10: Equal Rights Amendment Passes:
The NAR Delegate Body approved an amendment to Article 10 of the Code of Ethics to prohibit discrimination on the basis of sexual orientation. In a roll-call vote, more than 93 percent of the Delegate Body voted in favor of the amendment. The Delegate Body decision confirms a vote by the Board of Directors in May.

As a personal note, AG strongly supports and applauds the measure taken that Realtors’ ethics supersede federal law so that no matter if it is legal or not locally, discrimination based on sexual orientation will not be tolerated from Realtors, a measure taken by Realtors. This amendment however will come with some possibly negative ramifications which we will be discussing in the future.

We believe housing to be a basic human right that no one should be denied and we are astonished that anyone (especially the 7% that voted against the Article 10 amendment) would find it necessary to discriminate because of sexual orientation and we hope HUD follows in NAR’s footsteps in this case.

Lani is the New Media Director here at AgentGenius.com and President of New Media Lab, both of which are headquartered in Austin, TX. She has an English degree from the University of Texas (and of course used that to become a blogger) and has lived in Texas her whole life minus the semester in Spain and the summer in Mexico. She spends a great deal of energy on the AG brand as well as improving the real estate industry and is an avid Twitter user.

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NAHB Reminds Consumers to Renovate Now Before Energy Tax Credits Expire

Home owners have two more months to take advantage of tax credits that can help them save energy and reduce their utility bills with more energy-efficient windows and doors, insulation, and heating and cooling equipment, according to the National Association of Home Builders (NAHB).

"Our members are ready to help consumers make the best choices for their homes, but home owners should act soon if they want to qualify for up to $1,500 in tax credits when they complete their 2010 income tax returns," said NAHB Remodelers Chair Donna Shirey, a remodeler and builder in Issaquah, Wash.

"We think it would be a great benefit to both the environment and to our economy to extend these tax benefits, but they are scheduled to expire at the end of the year," Shirey noted. "For that reason, NAHB suggests that home owners get the work done before Dec. 31, while the tax credits are still available."

The tax credit for efficiency upgrades in existing homes (Internal Revenue Code Section 25C) is available for 30 percent of the cost, up to a $1,500 limit for 2009 and 2010, for the installation of certain types of insulation, windows, roofs, water heaters, heat pumps, air conditioners and furnaces. Details on the kinds of products that qualify and instructions for obtaining the credit are available at www.nahb.org/efficiencytaxcredit.

Other Important Efficiency Incentives

In addition to supporting efficiency upgrades to existing housing, NAHB continues to push for the return of the section 45L tax credit for new, energy-efficient home construction, which expired at the end of last year. The section 45L tax credit was the only federal incentive available for efficiency in new home construction; about 10 percent of all new homes sold in 2009 qualified.

A tax credit available under tax code section 25D is also available for equipment that uses renewable energy, such as wind, solar, geothermal or fuel cells. Like the 25C credit, the 25D credit can be used for up to 30 percent of the cost of qualifying products, but there is no lifetime limit and the program does not expire until the end of 2016.

NAHB continues to push for extension and expansion of a variety of energy-efficiency incentives in both new and existing homes, but the current political climate is making such advocacy efforts challenging. For example, the national "Cash for Caulkers" or Home Star program, which sought to create a $5 billion national energy efficiency rebate system, did not get approved by Congress this year.

"We understand that there are trade-offs and budgetary considerations for all these programs," Shirey said. "Tax credits can take advantage of the existing administrative infrastructure – the Internal Revenue Service – to immediately get off the ground."

To find a remodeler or other contractor to help you with your weatherization or home renovation project, contact your local home builders association at www.nahb.org/findanHBA. To learn more about the tax credit program, go to www.nahb.org/efficiencytaxcredit.

3rd Quarter Update 2010

A video update on the trends and activity in the Charleston, SC residential real estate market during the third quarter of 2010.

Southwest Airlines Announces Fares and Flights To/From South Carolina

Airline Will Operate Seven Daily Nonstop Flights Each To/From Charleston and Greenville-Spartanburg Airports Beginning March 13, 2011

DALLAS, Oct. 20 /PRNewswire-FirstCall/ -- Southwest Airlines is coming to the Palmetto State! Today, Southwest announced it will begin service to/from Charleston International Airport (CHS) and Greenville-Spartanburg Airport (GSP) on March 13, 2011.

In Charleston, the carrier will operate seven daily nonstop flights to four destinations: three to Baltimore/Washington, two to Chicago Midway, one to Nashville, and one to Houston Hobby. Southwest Airlines will operate from gate B5 in Charleston's main terminal.

In Greenville-Spartanburg, the airline will begin service with seven daily nonstop flights to five destinations: two to Baltimore/Washington, two to Chicago Midway, one to Nashville, one to Houston Hobby, and one to Orlando. Southwest Airlines will operate from gates A3 and A4 in Greenville-Spartanburg's main terminal.

To celebrate the addition of Charleston and Greenville-Spartanburg to the Southwest network, Southwest Airlines is offering a special two-day fare sale only on southwest.com. Through 11:59 p.m. PDT on Thursday, Oct. 21, 2010, Customers can find fares as low as $30 one-way to any nonstop market to/from CHS and GSP for travel through April 6, 2011 (see fare rules below). When the $30 fare sale ends, Customers will still be able to book fares as low as $59 one-way for travel every day except Fridays and Sundays March 14, 2011, through May 25, 2011. To view these special offers only available on southwest.com, visit www.southwest.com/southcarolina.

"Southwest Airlines is delighted to bring our special brand of low-fare, high-quality Customer Service to travelers in Greenville-Spartanburg and Charleston," said Dave Ridley, Southwest Airlines Senior Vice President of Marketing and Revenue Management. "For nearly 40 years, we have been liberating Customers across the country from the tyranny of high fares and poor service. We can't wait to continue this mission by introducing our wonderful People, low fares, and Boeing 737 jet service to the Palmetto State."

In addition to the seven daily nonstop flights to/from these cities, Southwest Airlines' new service will offer direct or connecting service to more than 60 destinations including: Las Vegas, Denver, Dallas Love, Sacramento, and Salt Lake City. To hear more about the new service, check out Southwest's blog at www.blogsouthwest.com for a video from Southwest Executives Dave Ridley and Bob Montgomery on how Southwest is bringing big planes, low fares, and great people to South Carolina.

"The arrival of Southwest Airlines will absolutely be a game changer for the entire Upstate," said Dave Edwards, GSP Executive Director. "Not only will passengers benefit from low fares and additional destinations, but we've already heard from those working in the area of economic development that they are getting calls from business and industry groups from around country that never would have considered the Upstate without Southwest Airlines."

"Southwest Airlines' announcement to bring new service and value pricing to Charleston International Airport is clearly welcome," said Susan Stevens, Director of Airports for Charleston County Aviation Authority. "Southwest's vast national network will be linked to the Charleston region and will offer both residents and visitors new options for travel to and from the Lowcountry."

The entrance into South Carolina marks the 36th state in Southwest's network. Greenville-Spartanburg will be the carrier's 70th city, and Charleston will be its 71st.

After nearly 40 years of service, Southwest Airlines continues to differentiate itself from other low fare carriers—offering a reliable product with exemplary Customer Service. Southwest Airlines is the nation's largest carrier in terms of originating domestic passengers boarded, now serving 69 cities in 35 states. Southwest also is one of the most honored airlines in the world known for its commitment to the triple bottom line of Performance, People, and Planet. To read more about how Southwest is doing its part to be a good citizen, visit southwest.com/cares to read the Southwest Airlines One Report™. Based in Dallas, Southwest currently operates more than 3,200 flights a day and has nearly 35,000 Employees systemwide.

$30 One-Way Fare Rules

Fares are available only on www.southwest.com. Southwest Airlines fare sales are available for purchase October 20, 2010, through October 21, 2010, 11:59 p.m. PDT, and travel must take place between March 13, 2011, and April 6, 2011. Fares do not include a federal excise tax of $3.70 per takeoff and landing. Fares do not include airport-assessed passenger facility charges (PFC) of up to $9.00 and U.S. government-imposed September 11th Security Fee of up to $5.00 one-way. Seats are limited. Fares won't be available on some flights that operate during very busy travel times and holiday periods. Fares are available for one-way travel. Fares valid for travel to nonstop destinations only. Fares may be combined with other combinable fares. Fares are not combinable with Senior Fares. When combining fares, all rules and restrictions apply. Fares are nonrefundable but may be applied toward the purchase of future travel on Southwest Airlines. Fares are not available through the Group Desk. Any change in the itinerary may result in an increase in fare. Standby travel requires an upgrade to the Anytime fare. Fares are subject to change until ticketed. Fares are valid on published, scheduled service only.

Introductory Fare Rules

Fares are available on www.southwest.com or swabiz.com. Southwest Airlines fare sales are available for purchase October 20, 2010, through December 31, 2010, 11:59 p.m. PDT, and travel must take place between March 13, 2011, and May 25, 2011, excluding April 21-25, 2011. Travel valid every day except Fridays and Sundays. Fares do not include a federal excise tax of $3.70 per takeoff and landing. Fares do not include airport-assessed passenger facility charges (PFC) of up to $9.00 and U.S. government-imposed September 11th Security Fee of up to $5.00 one-way. Seats are limited. Fares may vary by destination, flight, and day of week, and won't be available on some flights that operate during very busy travel times and holiday periods. Fares are available for one-way travel. Fares may be combined with other combinable fares. Fares are not combinable with Senior Fares. When combining fares, all rules and restrictions apply. Fares are nonrefundable but may be applied toward the purchase of future travel on Southwest Airlines. Fares are not available through the Group Desk. Any change in the itinerary may result in an increase in fare. Standby travel requires an upgrade to the Anytime fare. Fares are subject to change until ticketed. Fares are valid on published, scheduled service only.

www.southwest.com


SOURCE Southwest Airlines

HOME SALES AND PRICES SURVIVE TAX CREDIT FALLOUT, INVENTORY DROPS NEAR ANNUAL LOW

HOME SALES AND PRICES SURVIVE TAX CREDIT FALLOUT, INVENTORY DROPS NEAR ANNUAL LOW

Sales Outpace 2009 Levels and Prices Continue Steady Growth

CHARLESTON, SC—(October 11, 2010) According to preliminary data released by the Charleston Trident Association of REALTORS®, 659 homes sold at a median price of $188,840 in September. This reflects a 5% decline in sales but a 9% increase in median prices when compared to preliminary figures from September 2009.

Year-to-date figures show sales 15% ahead of this point last year, with the median price increasing a slight 2%, holding ground in the high $180’s. Thus far in 2010, 6,698 homes have sold at a median price of $188,000. Compared to the same period last year, 5,829 homes sold at a median price of $185,000.

“At this time last year, the tax credit was in full swing, so it’s encouraging to see steady improvement in our sales and prices compared against last year’s numbers” said 2010 CTAR President, Jeremy Willits.

“Despite the fact that some regions across the country are still experiencing significant declines in buyer activity, that is simply not the case for Charleston. We experienced a month of slow sales following the expiration of the tax credit, but heading toward the close of this year, we’ve established stability—sales have kept pace, median prices continue to rise and inventory is declining” said Willits.

The number of homes listed as actively for sale with the Charleston Trident Multiple Listing Service (MLS) was 9,312 at the end of September, down 4% from September 2009 and the lowest level of inventory seen since the beginning of this year. Inventory has remained close to the 10,000 mark for much of the year, so declining inventory could signal more balanced supply and demand.

BERKELEY COUNTY

Sales in Berkeley County hit a three-month high, with 172 sales at a median price of $168,948—a marked improvement from last September’s 135 sales at a median price of $150,000. September’s figures reflect a 27% increase in sales volume and a 13% increase in prices.

These increases are supported by significant levels of activity on Daniel Island—where sales are consistently doubling from 2009 levels. Sales of single family homes on the island have increased 109% year-to-date, without sacrificing prices—which remain steady in the $500,000 range.

CHARLESTON COUNTY

Sales in Charleston County were comparable with 2009 levels, while prices inched up another 5%. 351 homes changed hands at a median price of $224,500. In September 2009, 359 homes sold at a median price of $214,000.

Continued activity in the island markets support the steadying market—both Folly Beach and Isle of Palms, which was recently included on the Forbes List of America’s Most Expensive Zip Codes, doubled their sales over September 2009.

DORCHESTER COUNTY

Dorchester County showed improvement in median sale price last month—recording a 14% increase as prices climbed to$176,000. Last September, the median sale price was $154,000. Sales are still sluggish in the foreclosure-plagued county, with 120 sales in September 2010, down 27% when compared to September 2009’s 164 closings.

Most of the County’s activity is taking place in the Summerville/Ridgeville area, where 49 of the area’s 120 sales closed and prices increased 9% compared to last September. Notably, the North Charleston/Summerville/Ladson area recorded a 32% increase in median price during the month, jumping from last year’s $162,750 to $214,900.

AUGUST 2010 ADJUSTMENT

Preliminary numbers reported for August 2010 indicated 681 homes sold at a median price of $199,055. Adjusted numbers now show 697 sales at the same median price.

With approximately 3,700 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®.