For those considering a move to South Carolina’s Upstate, your timing is perfect for finding an affordable home, no matter if you are buying or building anew. Long-term interest rates are at all time lows, and there are many bargains to be found if you do your research and explore the right areas.
The Upstate’s economy is holding up relatively well due in large part to the area’s excellent location between Atlanta, Ga., and Charlotte, N.C., as well as the region’s diverse grouping of high-tech industries and advanced manufacturing. The real estate market is down a bit, but many experts predict that the Upstate will continue to grow and provide economic stability for South Carolina and its residents.
“Given (the Upstate’s) diverse economy and its commitment to cutting edge innovation, it has not been impacted quite as strongly as some other areas by the current economic downturn,” said Hank Hyatt, vice president for economic development at the Greenville Chamber of Commerce. “A focus on research and development in many fields, including transportation and advanced materials, combined with a strong emphasis on developing entrepreneurship, has positioned (us) to compete with the best (areas) across the globe once the economy turns.”
The Upstate’s cities — Greenville, Spartanburg, Anderson, and the surrounding communities — offer convenient neighborhoods and a plethora of housing options. The cost of living in the Upstate is lower than the national average, resulting in typically a “more-home-for-money” scenario. You are going to be thrilled with the end result financially if you are considering a move here.
Previously owned homes are typically cheaper per square foot, but costs for building materials (drywall, lumber) are also low now, so building your own custom home might also be a smart move for you depending on your preferences. Many people enjoy the challenge and end reward in designing a custom home to suit their lifestyles and tastes. Custom builders are well represented in the Upstate and will help you design and build the home of your dreams!
First Things First
The first thing to consider when buying (or building) a new home, of course, is your current financial situation. Getting your credit report up-to-date is vital. You can download a free credit report online at many web sites. Check for errors and take care of anything that is listed as outstanding.
Armed with that information, the next task is getting pre-qualified for a loan. Pre-qualifying takes things a step further than simply pre-approval for a loan. Whereas with pre-approval the lenders may only look at your basic income, with pre-qualifying they will probably want information on your income, assets and credit status.
Lenders will use this information to determine a loan amount that would be approved. Pre-qualification will give you a more accurate price from which to work, as well as the assurance that once you select your house, the money will be waiting for you.
When choosing a mortgage lender, it pays to do research. Look for a lender who has a reputation for providing competitive rates and listening to the buyer’s specific needs when it comes to applying for loans. Buyers should also look for lenders who can make the underwriting decisions and control the mortgage process from application to closing.
Word of mouth can sometimes help narrow the field of lenders. Talk to your agent, bank, or credit union. When you have a few names and contact information for possible lenders, be sure to compare their rates and fees.
Also, be sure to ask your lender about other fees, such as points, application fees, origination fees, broker fees, appraisal fees, and legal fees. These extra costs will affect your bottom line, so it’s good to know what to expect to avoid surprises at closing.
Find a Realtor!
Contacting a real estate agent is next on the list. A good agent can help you nail down the type of home you’re looking for: the location, the neighborhoods, schools, etc. Most folks feel that the fee you have to pay an agent for representing you is well worth the benefits you receive. These include information, advice and convenience. They do the looking for you!
After, you’ve supplied your realtor with your likes and dislikes, the space requirements, even the communities to consider. Now, let them do their jobs and show you the homes that they think will be of most interest to you!
Time is always precious but do not try to cram as many house showings into a Saturday as possible simply because you’re off work. Pretty soon one property will begin to blend into another and the entire day becomes a blur. Make a short checklist or some sort of informal form to help keep track of the homes you’ve seen. If a property is a definite no, eliminate it at once and move on. There’s nothing wrong with shortening your list at the end of each day.
After you feel you have a list of potential homes, it’s time to narrow the field. This may be the hardest part of the process because you’re mixing emotion and logic. That’s why having professionals like Realtors, lenders, inspectors, and appraisers on your team helps. They can help you make a logical choice that you can also fall in love with.
Some of the things to consider are, of course, the structure and features of the home, but also be sure to look into the future. What about resale value? What about the surrounding property? Are there any zoning restrictions, right-of-way easements, or upcoming development that you weren’t aware of? Your realtor should research these aspects and provide you with these kinds of answers.
Build a Custom Home
With labor costs, materials and housings starts at recent lows, if you are considering building a new home, the timing is also excellent!
There are many advantages to building your own home, but probably the most important is customization. Having the home tailored to suit your every whim is one of the most rewarding feelings you can have when the job is completed. The ability to choose things like cabinetry, tiling, counter tops, and fixtures, not to mention the size of the bonus room, carries a lot of weight for most people when trying to determine whether to buy an existing home or building their own.
According the National Association of Home Builders (NAHB), the first thing to do is to find a reputable builder with whom you have a good rapport. Places to obtain a list of local builders include your local homebuilder’s association or check www.move.com, the NAHB’s official new homes listing Web site.
You should also become familiar with your local newspaper’s real estate section. This will give you a good idea of the prices you can expect, the current hot neighborhoods, which builders are active in your area, etc. You might also turn to friends and relatives for recommendations, or your local real estate agent can help as well. Make a comprehensive list of the builders you want to research.
Now, you can start contacting these builders and finding out more about what they have to offer. You will want to check the builders’ reputations, and the best way to do this is by visiting homes they have built and talking with their owners. Drive by on a nice Saturday morning and stop to talk to some of them. Most will be willing to share their experiences with you. They might also give you some advice about the area, the schools, the amenities in the neighborhood, etc.
Some builders change the floor plan and don’t communicate this to the buyers, so that’s another thing to keep in mind. To reduce the chances of that happening, talk with your builder often. And if you’d like to change the floor plan, make sure you tell the builder as soon as possible. Beware that some changes, such as switching from basic cabinets to customized cabinets, can result in added costs at the end of the project. Communicate with the builder about how much this change will cost before the work is completed.
Custom builders work with you to create a home specific to your needs. Once you’ve done your homework (interviewed multiple builders, checked builder references, etc.) and chosen a suitable custom builder, then you can sit down and design your home. It may be a good idea to bring any home plans that you would like to use for ideas or as a guide to your new house. Your builder will help you make modifications where necessary.
If your builder has a good reputation and solid construction processes, he will follow up on all changes and adjustments with paperwork, making sure that you understand what you are getting (pictures, examples, other home tours) when you sign off on specific adjustments. It is important to make sure the homebuyer’s expectations and the results are in line to produce a happy homeowner at the time of sale and thereafter.
Eventually, after what might appear a long and tedious process, you will be able to take solace in the fact that you did your research, shopped around, and made wise decisions. Welcome to your new home in the Upstate!
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