| Hilton Head Buyer/Seller FAQ's
BUYER / SELLER Frequently Asked Questions (FAQs)
Are you a BUYER's Agent?
I work with Buyers and Sellers as most complete agents do. Working as your Buyer's Agent, we would sign an Agency Disclosure (required by SC Real Estate Commission) which states that I represent you, the BUYER, based on showing you specific properties of interest. I am also a member of the Hilton Head MLS, the Chamber of Commerce, and the National Board of Realtors.
Does a Buyer pay any commission or fees to the Realtor?
Seller pays all applicable real estate fees.
Do you represent all properties within the Hilton Head Area?
Yes. As a member of the Hilton Head MLS, I have access to all MLS listings on Hilton Head, Daufuskie Island, Bluffton, Okatie, Beaufort, Jasper County, and greater Beaufort County. I can also represent you if you are interested in a development community that is not part of MLS, such as Palmetto Bluff, Oldfied, or Sun City. My real estate expertise covers all of southern Beaufort County.
What's your business approach when working with BUYERS?
My approach is quite simple. Once I determine exactly what type of home or villa you're most interested in, I make a recommendation as to what I believe would offer the best fit. I then e-mail potential listings for your review. If a Buyer expresses an immediate interest, I do a physical inspection and take digital pictures, sending those out immediately. Most buyers will arrange to visit the area and spend a few days previewing properties. Based upon our findings, an offer to purchase is submitted.
What are typical Closing Costs for BUYERS?
In South Carolina, attorneys handle real estate closings, not title companies. Closing costs include the attorney's fee (on average $550), title insurance, pro-rated property taxes and hazard insurance, POA fee (property owner association fee for common areas), and financing-related charges. Some communities also have a transfer fee. Hilton Head Island has a transfer fee of 0.25% on any property purchased within town limits. As an example, closing costs on a $500,000 property will run approximately $7,500-$10,000 including all pro-rated charges.
What are typical property values on Hilton Head Island and off-island?
Proximity to the ocean has a great deal to do with real estate values. Oceanfront homes generally are $4M and higher; 75% of all home listings in Sea Pines are over $1M. The average homesite price is greater than $400,000, and the average Island home is $700,000 or greater. Homes off-island average $400,000; however, premier private golf communities list many properties over $1M. Condo prices range between $250,000 and $2.5M.
What's involved in owning a rental home property?
Many Island communities permit short-term, vacation rentals. A contract is negotiated with a local Rental Management company who handles marketing and renting the property for a fee. Typical rental commissions are between 20% and 35% of the rental cost (less housekeeping expenses). As an example, a desirable oceanfront home might rent for $7000-$10,000 per week, less $250-$500 housekeeping fee and an 18% management fee, which can net $5,412-$7,790/week in income.
What are typical ownership expenses? (i.e., Taxes, Insurance, etc.)
South Carolina taxes are lower than most states in the northeast (e.g., NJ, NY, and CT) but higher than those in the mid-west. If the home is your primary residence, the property tax rate is 4%; if it is a second home or rental property, the tax rate is 6%. As an example, taxes on a $2M second home will be roughly $16,000-$18,000 per year. The closer your home is to the ocean the higher your insurance rates; insurance on a 3rd or 4th row home will be in the $8,000-$12,000 range. Property Owner Association (POA) fees (if applicable) average around $1,000 per year. Additionally, private equity clubs have dues, which include golf privileges and various club amenities, in excess of $10,000 per year.
SELLER Frequently Asked Questions (FAQs)
Why should I list my property with Joe Agee of Hilton Head Luxury Homes?
Most Realtors are members of the MLS, which is a great "equalizer." As a Broker/Owner, I can list property for the most competitive fee and offer a personal touch. My Value Marketing approach provides Sellers a cost-effective way of getting their property exposed to potential buyers and ultimately sold.
How do you determine the appropriate list price?
Factors such as recently closed sales (CMA); current market conditions; location and age of home; size, upgrades, land value, etc.; similar properties currently pending; and what's on the market are all considered. I also have a Certified Appraiser assess the value of your property at no charge.
What's the typical percentage of contract price to list price?
In today's market, the percentage usually ranges between 90% and 97%—contract price to list price. Average is 93%.
Are real estate commissions negotiable?
Yes, they are negotiable. The listing commission is agreed upon between Seller and Realtor. Listing commissions can typically be as high as 7%, with a 50/50 co-broker fee, which means the Selling Broker receives 50% of the fee and the Listing Broker receives 50% of the fee.
Why is your Listing Fee lower than other realtors?
My Value Marketing approach is simple—provide similar real estate services at a lower cost. Sellers benefit financially, as will I, with future referral business. For million dollar listings and higher, I offer very competitive real estate fees. And I still offer attractive co-broker fees to the selling broker. If I sell your property, I pass on additional savings to you.
What are examples of "merchandising?"
Your home may need minor renovations, such as kitchen or bathroom remodeling, new carpeting or hardwood floors, an exterior coat of fresh paint, or enhanced landscaping. The cost vs. the projected return is evaluated to determine feasibility.
How do you intend to market your listings?
The Internet has changed the real estate industry. Anyone can go to Hilton Head MLS Search to view every listing currently for sale. My Value Marketing Plan focuses on the Internet and specific web sites, such as Realtor.com, and Search Engines that produce new real estate customers everyday. Local print media is not as important as it once was. Making local Realtors aware of your listing is crucial to getting exposure (i.e. getting your property sold).
What are typical closing costs for a Seller?
Sellers are required to have a termite inspection. Per the Buyer's Home Inspection, the Seller may need to repair appliances/HVAC or remove wood rot, etc., but the cost is usually minimal. Attorney Fees, documentary stamps, and pro-rated expenses such as taxes, insurance, and POA fees comprise the bulk of the closing expenses.
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