Justin Winter’s Carolina Lake and Mountain Blog

2009 BMW Celebrity Charity Pro Am Golf Tourney

May 14-18th marks the PGA Tour’s annual stop in the Greenville SC area for the BMW Celebrity Charity Pro Am.  Over the past several years this tournament has become the most popular event on the Nationwide Tour, and, more importantly, the tourney has raised over 6m dollars for local upstate charities.  Did you realize that the PGA Tour has raised over 1.4 BILLION DOLLARS for charities over the past several decades??  I’m not aware of any professional sport that has contributed as much in donations as the PGA Tour.  

I’ll be competing this year for my second time in the tournament.  I had a very interesting practice session yesterday while playing 18 holes with David McKenzie and Roger Tambellini.  David and Roger have both played several PGA Tour events over the past few years and it was delightful to watch their ball striking yesterday.  We were joined for the back nine by the world renowned golf instructor, Dale Lynch.  Dale and Steve Bann own the recently opened International Institute of Golf (IIG) at The Cliffs at Keowee Springs(R), and teach such notable PGA stars like Geoff Ogilvey (World ranking #4), Stuart Appleby, Matthew Goggin, Aaron Baddeley, and several other PGA Tour pros in addition to David and Roger.    My son Ben and I became students of IIG in the fall of 2008 and have had great success with Dale’s team in improving our games.   Dale was very gracious with his time during yesterday’s round and assisted me with some short game techniques to improve chipping and pitching.   In general my day with David, Roger & Dale was a passionate golfer’s dream come true as I was able to see an in-depth view of just how great these players are while watching them interact with their coach while playing. 

Other notable tour players in this year’s tournament are Bill Haas and Charles Warren, two golfers very familiar with the Greenville area.  Charles is sponsored by The Cliffs and Bill Haas (son of Jay Haas) grew up on the Thornblade course, which is hosting the event along with Bright’s Creek and The Carolina Country Club.  This year’s tour field is deep with talent and any one of dozens of golfers could win the trophy.  Amateurs will play 3 rounds (Thurs, Fri and Sat) and there will be a cut after Saturday’s round to the low 14 teams for the final round on Sunday.  Celebrities such as Catherine Bell, Wayne & Janet Gretzky, Joe Peschi, and other big names will compete with their pros for the amatuer title.  All four days of golf will be televised on The Golf Channel.   My pro this year is Vance Veazey, a seasoned tour veteran who is currently the 3rd leading money winner on the Nationwide Tour.   Stay tuned for daily updates on the 2009 BMW Celebrity Charity Pro Am by following my Carolina Mountain and Lake Blog  ~~~~  Justin

Spring in the Carolinas

This is my favorite time of year in the Carolina’s.  The temperature warms, the grasses green, and song birds sing melodies we haven’t heard since last spring.  The first blossoms we see are from Bradford Pears and wild Cherries.  Recently, the Dogwoods have begun to blossom and when you drive through the forest it looks like white lace has been sprinkled on the trees.  The Azaleas are also in full bloom as witnessed by those who have been watching The Masters telecast.  In May the Mountain Laurel will blossom, followed by Rhododenrums in June.  Every month we have a beautiful new surprise along with warmer weather, warmer lakes, and a multiplicity of outdoor recreational choices.  However, the main reason this is my favorite time of year in the Carolina’s is because of The Masters.  If you’ve never been to Augusta National, and you enjoy golf, you MUST make the trip at some point in your lifetime.  To see the course conditioning, the stately structures, Magnolia Lane, The Butler Cabin, the tall sweeping pines, the elevation changes, and to feel the excitement and electricity in the air, is a golf experience like none other.   Early in 2001 I had the privilege of playing the course and the mementos and memories I have are the highlight of my golfing life.   If you’ve never witnessed Spring in the Carolina’s then you still have plenty of time.  Call us today and we’ll help you plan a trip that you’ll never forget.  Justin Winter

Housing Stimulus

On Wednesday President Obama announced the $275 billion Homeowner Stability Initiative, which contained broad outlines of three major elements intended to help prevent foreclosures and falling home values. First, the government will make it easier for many borrowers who currently may not be able to refinance their loans to refinance. Only existing owner-occupied loans owned or guaranteed by Fannie Mae or Freddie Mac are eligible for consideration under the plan. The government estimates that 4 to 5 million borrowers will be eligible for this program. Details regarding qualification and procedures for this refinance program are expected to be released in coming weeks. Second, the government will increase its commitment to Fannie Mae and Freddie Mac from $200 billion to $400 billion and will raise the portfolio size limits for the two firms by $50 billion each. In addition, the government pledged to continue to support purchases of mortgage-backed securities to help keep mortgage rates low. The third program provides incentives for servicers to work with borrowers at imminent risk of default to modify the terms of the mortgage, bringing payments down to affordable levels. If successful, the government hopes to prevent an estimated 2 to 3 million foreclosures, which would keep these homes from adding to the inventories currently on the market.  ~~~ Justin

Short Sales

Short sales are a great opportunity for buyers who can move quickly to take advantage of the current real estate market dynamics.  We have few instances at The Cliffs(TM) and The Reserve where sellers are being forced to consider this option, but they do exist.  I’m currently negotiating two short sales on cottages.  The benefit (more like a silver lining to a very desperate situation) to a seller is that they can protect their credit rating (it becomes a “settlement”) and prevents a foreclosure which would ruin their rating.  The downside is they lose any equity they had in the property, but that’s far better than the alternative of a foreclosure.   If you’re a seller, and you cannot make your loan payments due to mounting debt and no cash, I’d suggest you approach your bank and your REALTOR(R) about this option.  Foreclosure processes are expensive for lenders and an auction at the end of the process certainly isn’t a guarantee of a higher price for the property.  The lenders I’m working with on behalf of buyers and sellers have been understanding and fairly responsive and amenable to the short sale offers we’ve presented.  

 Did you know that NAR (National Association of REALTORS(R)) research shows a median of 77-78 percent of second-home value is financed and almost 20 percent of purchasers use the equity in an existing home as a source of down payment?   If you’re thinking of purchasing a second home or home site at The Cliffs or The Reserve then tapping the equity in your principal residence is a cost effective way.  Current federal law permits deductions of the interest paid on combined mortgage debt of up to $1 million on a primary and one additional residence ~~~~~ Justin

Cheap Money (part 2)

It seems that the low interest rates (3% HELOC!!) and the COLD weather in the northeast has buyers craving our mountain lake property in the sunny southeast once again.  January was a solid month for property contracts which took many of us by surprise.  We’ve also seen an increasing number of buyers from California due to high taxes (that are about to go higher), congestion, dirty air and security concerns.  The Upstate of South Carolina stands for low cost of living, no congestion, low crime rates (especially in our local cities and counties), friendly people, great year-round weather, abundant natural beauty, CLEAN AIR and crystal clear lakes.   At least, that’s what my clients see!!!  ~~~~Justin

Rates Rise after Fed Meeting

Mortgage rates held steady during the first half of the week, until Wednesday’s Fed meeting. As expected, the target for the Fed Funds rate remained unchanged, close to a level of zero. Heading into the announcement, the biggest question for investors was whether the Fed would begin to purchase Treasury securities in addition to mortgage-backed securities (MBS) to help support the financial system. Hoping for a decisive plan, many investors were disappointed that the Fed merely indicated that it was ready to purchase Treasuries if “evolving circumstances” justify the action. Yields on Treasury securities rose significantly after the announcement, and in order to compete for investors, mortgage rates moved higher as well. Also applying upward pressure on mortgage rates, a large fiscal stimulus plan moved closer to passage during the week. An $819 billion fiscal stimulus package passed a vote in the House, and the Senate is expected to consider its $900 billion version next week. The combined government spending for this new package, along with the TARP program, the MBS purchase program, and a proposed bank cleanup plan, will total trillions of dollars. An enormous amount of new debt will be issued to pay for all the government programs, and interest rates offered on all bonds may need to increase to attract investors. One positive note is that foreign investors continued to show strong demand for US bonds during the week. In the housing sector, December Existing Home Sales rose 7% from November. Inventories of unsold homes dropped to a 9.3 month supply from 11.2 months in November. According to the National Association of Realtors, lower prices persuaded many buyers to step in. Existing Home Sales cover more than 85% of total home sales, so this report was very welcome news for the housing market. December New Home Sales didn’t perform as well, dropping 15% from November.  

Cheap money for real estate

Many buyers lack the confidence today to make a real estate purchase.  My feeling is that buyers would rather know we’ve hit bottom and are on the way up then still on the way down.  As a result, those buyers will probably not time the market correctly and will pay more than the pricing that’s available while the market is still struggling.  Yes — I’m suggesting that this is the time to buy.  This down market is getting long in the tooth and many sellers are desperately wanting to unload properties NOW.  When the mood swings and the news becomes positive, then sellers will sense this change and their mindset will change as well.  Keep your eyes on the media.  With the new administration (whom the media mainly favors), the news will become positive as the media won’t want “their boy” to suffer as a result of a continuance of ”bad news” reporting.   This will most certainly affect the real estate business in a positive way, which will result in a more friendly environment for selling, and less friendly buying environment then we’ve seen lately.  Here’s another reason why you should make that purchase now:  CHEAP MONEY!!!  Home Equity Lines of Credit are available at 3.25%.  30 year fixed rate mortgages are available at 4.5-5.0%.  Coupled with the low, low property prices that exist in the marketplace, and seller’s anxiousness, NOW’S THE TIME TO BUY.   ~~~ Justin

Buying Tip:   An offer is not considered to be accepted until the person making the offer HAS BEEN NOTIFIED of the other party’s acceptance.  Preferably, a signed copy of the contract should be immediately delivered to all parties.

Senate Passes FHA Modernization Bill

Dear Justin,

I want to personally thank you each of you for taking action on these latest Calls for Action in support of FHA Modernization. More than 90,000 REALTORS contacted the Senate urging passage of the Housing bill. On July 11th, the Senate voted 63 to 5 to approve the legislation. As a result of your efforts, HR 3221 creates affordable housing opportunities by setting loan limits up to $625,500 for Fannie Mae, Freddie Mac and FHA, and will stimulate housing demand with a temporary $8,000 home ownership tax credit. The bill also includes broad reform for Fannie Mae, Freddie Mac, and FHA, and creates a new FHA program to help homeowners at-risk for foreclosure.
This bill is critical to restoring confidence in the mortgage and housing markets and the nation’s entire economy. But it isn’t complete yet. Now, the bill goes to a conference committee before Congress can send it to the President. Negotiations begin over the next few days and weeks, and both House and Senate leaders hope to get the bill on the President’s desk before the August recess.

Of course, none of this would have been possible without members mobilizing in support of this crucial legislation. Our strong involvement included face to face meetings between members and their Senators and Representatives in their home states as well as in Washington, DC. NAR generated more than 250,000 e-mail messages and phone calls urging Congress to take action on the vitally important Housing bill.

By working “All Together” we have shown that when REALTORS stand united the American dream of home ownership is open to all. Thank you for your successful efforts!

Dick Gaylord

President NAR

Client Testimonial

“Justin, as my wife and I were contemplating retirement in the next few years, we decided to look for a home in the upper part of the State.  Being in the real estate development business for the last 32 years and understanding the selling process, we decided to find the most successful and respected realtor – a realtor that understood what true “service” is all about.  All of our research pointed to Justin Winter and his company.  My company has developed several large master-planned communities in South Carolina, most notably Park West in Charleston/Mount Pleasant and Lake Carolina in Columbia.  As a result, I have had the occasion to work with professionals in the marketing and selling side of our business for many years.  I have not come across many, if any, Justin Winters.  He is true professional – unsurpassed area knowledge, excellent marketing skills, great communication, unbelievable service (before AND after the sale) and incredibly organized.  Most important, our buying process was fun!   THANKS Justin.”

–P.T., Columbia, SC

Fed Rate Cut!!!

Fed cuts again but changes outlook for future.

What does it mean to you?

The Federal Reserve cut interest rates today for the seventh straight time since September of last year. Many experts believe that the Fed is done cutting interest rates and will begin a new watch-and-wait policy. This new policy is due - in part - to the fact that the first Stimulus act rebate checks are hitting millions of mailboxes this week. The Fed hopes this money gives a boost in the arm to the economy.If you’ve been taking a watch-and-wait approach with your own finances, now is the time to review your options.

Consider this: the Federal Reserve Board meets 11 times this year to review the health of the US economy and make adjustments if needed. Don’t you think you owe it to yourself to take just a few minutes and do the same with your own financial & real estate goals?I want to ensure that you’re taking advantage of this unique market and not letting it pass you by. Here are just a few things to consider:

Today’s tougher housing market means there are some great buys to be had if you’re looking to purchase. This is an especially friendly market for first-time home buyers. You really don’t want to play the waiting game if you are holding an adjustable rate mortgage (ARM). That’s because there is nowhere for the rates to go but up from here, if we are truly at the end of the Fed’s cutting cycle. While the Fed takes a quick break from cutting to plan its next move, take advantage of the opportunity to do the same for yourself.

Article Courtesy of:

Dominick Pagni
Autumn Mortgage
418 River StreetGreenville, SC 29601
864-248-4867