IF YOU HAVE GOOD CREDIT (700+) AND CAN PUT 20% DOWN, NOW IS THE PERFECT TIME TO PURCHASE HILTON HEAD REAL ESTATE.    

SELLERS ARE  MOTIVATED AND INVENTORY SELECTION IS INCREDIBLY ATTRACTIVE.  30yr FIXED-RATE FINANCING AT 5+% IS AVAILABLE FOR PRIMARY AND SECOND-HOMES, VILLAS AND LOTS. SOME PROPERTIES CAN BE PURCHASED FOR PRE-2004 PRICING!LET ME HELP YOU FIND A GREAT BUY NOW!   

WELCOME TO HILTON HEAD ISLAND and the CAROLINA LOWCOUNTRY:

Hilton Head Island, with its 12 miles of sandy-white beaches, world-class golf and tennis, a variety of shopping venues and dining pleasures, is the ultimate resort vacation destination and an even more wonderful place to live. Maybe you have vacationed here in the past and now its time to make Hilton Head home or you've heard folks talk about our sub-tropical climate, incredible wildlife and our relaxed way of living and you want to learn more. With numerous private communities offering different amenities and property values, you need someone to help you sift through all the real estate options offered. 

Joe Agee, Realtor / Hilton Head Luxury Homes

Joe Agee is the owner/broker of Hilton Head Luxury Homes, a residential real estate company specializing in premier Island and Lowcountry properties. Joe works directly with his customers and clients providing a level of hands-on professional service seldom offered by other agents. Joe's 30 years of local real estate experience and detailed knowledge of the market, coupled with his compassionate personal touch, enables him to create a special bond with those he works with.  

Oceanfront and Near-Ocean Homes

Hilton Head Island has 12 miles of oceanfront. Starting from the south-end, oceanfront and near-ocean communities include Sea Pines, South and North Forest Beach, Palmetto Dunes Resort, Singleton Beach, Folly Field and Port Royal. Choice of properties range from timeless beach cottage-type homes to grand oceanfront estates, some encompassing multiple homesites. Oceanfront homes will generally start in the upper $2 million price range for a tear down property and go as high as $8 million. Very few undeveloped oceanfront lots remain with prices starting in the $2 million range. Aside from Port Royal, which doesn't allow vacation rentals, many oceanfront homes are maintained as weekly rental properties, which can generate $100,000 - $200,000 in revenue per year. Oceanfront has always been considered the gold standard when it comes to real estate investment. 

Near-Ocean homes generally offer a short walk to the beach (3-7 minutes, etc.) which encompasses 2^nd row ocean to 7^th or 8^th row. Homes can range from older, more modest homes to brand new state-of-the-art mansions, typically designed for rentals. Near-Ocean prices range from $600,000 to over $3 million. These homes are very popular in that they offer easy access to the ocean, command a much lower price and generate substantial rental income, which can range from $35,000 to $125,000.

Oceanfront and Near-Ocean Condominiums

Oceanfront condominiums have been part of the Hilton Head landscape since the early 70’s. Condo communities are located in Sea Pines, South Forest Beach, Palmetto Dunes, and Folly Field. Sizes range from one-bedroom studios in the South Forest Beach and Folly Field areas to 4 bedroom state-of-the-art condos in Palmetto Dunes Resort. Prices range from $200’s to $2 M (Somerset Villas in Leamington/Palmetto Dunes, do not allow short-term rentals) An average luxury two bedroom oceanfront condo is priced from $500,000 to $1 Million and will generate roughly $35,000 to $50,000. Actual rental revenue is a function of size, location and view.

Near-Ocean condominiums are on average a 3-7 minute walk to the beach. Near-ocean properties can be found in all the above communities plus Shipyard Plantation. Sizes can range from efficiencies to 4 bedrooms, but 2 bedrooms are most common. Prices can range from the $200’s to $900,000. These properties generate $10,000 to $40,000 per year in rental revenue.

 THOUGHTS TO CONSIDER WHEN EVALUATING AN

OCEANFRONT INVESTMENT

(scroll down to view featured properties)

When evaluating an oceanfront investment on Hilton Head Island, there are a number of variables that need thoughtful consideration. The highest and best use of any real estate is always critical, but beyond the investment strategy, the property should be one that will always provide the desired personal enjoyment experience as well as functionality as it relates to the needs of the owner / extended family, etc.

1. LAND VALUE / CONSTRUCTION COSTS

The LAND VALUE will ultimately determine the cost of the home (improved property). In many scenarios where an oceanfront home was built in the 60’s, 70’s or 80’s, the land has far more value than the home that it sits on. Sea Pines and Palmetto Dunes have the highest oceanfront land values, primarily because of it’s resort amenities and ability to rent property on a short-term basis, which can generate significant revenue. Homesites in these two communities are full-size in nature (1/3 of an acre and larger). Bottom-line: the homesite – it’s size and location and view offered – will mostly determine the value of an oceanfront home.

When building a home on oceanfront real estate, generally no expense is spared. CONSTRUCTION COSTS (price per square foot) starts at $250/sq.ft. and, $350 to $400/sq.ft. is not uncommon. Architectural fees can run as high as 10% of the construction cost. In today’s world of “McMansions†it’s not uncommon to see homes in excess of 7,000sq.ft. Of course it’s all a function of the lot size and the desires of the homeowner. Some areas have covenant restrictions as to how large a home can be.

2. PROPERTY TAXES / INSURANCE COVERAGE

In South Carolina, property taxes are less than in states such as New York, New Jersey, Connecticut, etc. There is a difference in taxes paid if your Hilton Head home is your “primary residence†instead of being a second-home. A 4% ratio is used for tax calculation if the property is your primary residence and 6% if it’s a second-home.

Casualty insurance has become a major issue throughout the entire Eastern Seaboard as rates have increased over the last 18 months because a number of insurance companies have discontinued offering coverage, which has led to less competition and higher insurance costs. This is currently being addressed by South Carolina law makers as there has been talk of creating caps on how much premiums can increase in a given year.

3. RENTAL MANAGMEMENT COMPANIES

 A number of oceanfront and near ocean properties are purchased as “vacation homes†and are available for short-term rental through a licensed Rental Management Company. Oceanfront and ocean-oriented homes are in big demand throughout the year and are the first properties to be rented – most reservations are made in early January or even booked the year before, so rental guests are assured of having the desired location and accommodations.

Homeowners enter into a “Rental Management Contract†and agree to pay a 15-20% commission of gross rental receipts. Housekeeping/cleaning costs are an additional expense. Gross rental revenues can range from $70,000 to $200,000 depending on the size and location of the home. Number of bedrooms, view of the ocean, interior furnishings and accessories all factor in to the rental rate charged. Rates will fluctuate with the seasons, with summer being peak.

Summer weeks (Memorial Day – Labor Day) are almost guaranteed to be rented and spring is very strong along with early fall and holiday weeks. Some homes have rented for 35 weeks a year or more.

There are a handful of rental management companies who specialize in premier rental properties and it’s recommended you interview at least three and then determine who you want to manage your property.

4. INVESTMENT OPTIONS TO CONSIDER

One investment option to consider is to BUILD A NEW HOME. There are only a few undeveloped oceanfront homesites on the Island, so your ideal location might not be available. But like many new oceanfront and near-ocean construction projects over the last 10 years, you may be able to find a TEAR DOWN (i.e. home built in the 60’s – 70’s, etc.) property that offers the perfect setting for your new “custom built dream home.â€

It all gets back to land value. To tear down a home costs between $15,000 and $25,000 on average. In some cases, parts of an existing home may have some residual value, but that would be a bonus. Some older homes (with little to no debt) are being sold for land value only and in some cases you can find motivated sellers.

With older homes you can RENOVATE as well – increase square footage by adding a second story, update kitchen and bathrooms, add a pool and spa – and you have yourself an attractive rental property with less invested than if you bought brand new. It all comes down to what is your “appetite†for building projects or do you want a “turn key†situation that just makes life easy.

Of course, there’s the “tried and true†real estate investment strategy: BUY and HOLD a piece of land for the future. Whether it’s to build your dream home or resell at a future date, one thing is for certain, oceanfront real estate on Hilton Head Island is a dwindling commodity and demand continues to escalate each year.

5. APPRECIATION POTENTIAL – PAST / PRESENT / FUTURE

Based on what has transpired since the late 1950’s as it relates to OCEANFRONT  REAL ESTATE on Hilton Head Island, it’s like having a guaranteed annuity that provides a double-digit return year after year. Oceanfront will always be the ultimate real estate form of ownership and with Hilton Head’s overwhelming popularity, there will always be those special few who must have a piece of Island’s oceanfront paradise.

2008 OCEANFRONT HOMES CURRENTLY FOR SALE

67 HOMES FOR SALE

AVG HOME: 5BR / 5 & ½ BA

AVG HOME PRICE: $4,100,000

2008 OCEANFRONT HOMES CURRENTLY PENDING (as of 12/22)

FOREST BEACH / 23 DUNE LANE - $2,895,000

FOREST BEACH / 77 DUNE LANE - $4,995,000

OCEANFRONT SALES HISTORY

 2008 OCEANFRONT

10 HOMES SOLD

AVG. 4BR / 4BA - $3,895,000

HIGH 5BR / 5BA - $5,175,000

2007 OCEANFRONT

24 HOMES SOLD

AVG HOME: 4BR / 4 BA – LIST: $4,777,000  SALE: $4,387,000

MAX HOME: 8BR / 8BA & (2) ½ BA – LIST: $8,199,000  SALE: $7,750,000

2006 OCEANFRONT 

17 HOMES SOLD

AVG HOME: 5BR / 4 & ½ BA – LIST: $4,610,000  SALE: $4,333,000

MAX HOME: 8BR / 7BA & (3) ½ BA – LIST: $9,500,000  SALE: $9,200,000

 2005 OCEANFRONT

41 HOMES SOLD

AVG HOME: 5BR / 5BA – LIST: $4,530,000  SALE: $4,290,000

MAX HOME: 8BR / 7BA & (3) ½ BA – LIST: $8,300,000  SALE: $8,000,000

 2004 OCEANFRONT

32 HOMES SOLD

AVG HOME: 5BR / 4BA – LIST: $3,931,000  SALE: $3,758,000

MAX HOME: 8BR / 7BA & (2) ½ BA – LIST: $6,900,000 SALE: $6,650,000

OCEANFRONT HOMESITES

Oceanfront homesites offer a wide-range in pricing depending on size, location and view. Newer developments in the Singleton Beach area (off-Plantation) and in Folly Field, have smaller, “patio†style homesites with building envelopes designed for “townhome†type structures. Larger full-size homesites are found in Sea Pines, Palmetto Dunes, Forest Beach and Port Royal. There are a limited number of large lots in Folly Field.

2008 OCEANFRONT

18 HOMESITES FOR SALE

AVG LOT: $4,705,000

LOW OF $1,999,000 - HIGH OF $7,000,000

2008 OCEANFRONT

1 HOMESITE SOLD

LIST $4,295,000 - SOLD $3,750,000

2007 OCEANFRONT

 0 HOMESITES SOLD

2006 OCEANFRONT

4 HOMESITES SOLD

AVG LOT: $4,062,500

  LOW OF $2,800,000 - HIGH OF $5,250,000

FEATURED PROPERTIES - OCEANFRONT HOMES

Palmetto Dunes / Leamington	Oceanfront Luxury-GREAT VALUE BUY
124 South Shore Townhomes	Residence
5BR / 5 1/2 BA	5BR / 5 1/2BA
$4,275,000	$4,275,000

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