Discussion RE: Handy Man Special

John:

Thanks for responding to my previous email regarding the Handy Man Special at Anchorage Villas in Shelter Cove.

I'm going to answer your questions and comment within your original email. My answers are in red:

If you were going to begin "making a move" to be in HHI for retirement in about 5 years, would you start with something like this? Or, would you go ahead and sink into a $500-$700 home, and fix it up?

It depends on whether you have a community that you absolutely love and want to be part of now. It seems the best and most logical choice for your family would be to purchase a villa now, and then roll it into a larger single family home down the road. If they purchased a villa now at TODAY'S prices with TODAY'S inventory, then they will surely find great deals. They would purchase now, and then wait for the market to come back in order to sell or roll into something else.

Many experts feel that we've either already hit the bottom or we're darn close. In fact, according to our local MLS, home & villa sales in the HHI market were down slightly more than 10% in 2007, but the median price remained relatively stable, dropping less than 3%. This shows that price reductions are slowing down.

The goals for buyers should be "buy low, sell high"...and I feel that "low" is either upon us or very close.

Another important note to keep in mind is this: our villa inventory is huge right now. Take a look at the following stat:

YTD December 2005 Villa Inventory: 791 (36 days on market)
YTD December 2006 Villa Inventory: 1104 (101 days on market)
YTD December 2007 Villa Inventory: 1189 (131 days on market)

This bodes well for a potential buyer. Buyers have many choices which allows for negotiations.

Take a look at the table again below showing the available Anchorage Villas. You'll see the highest priced unit is at $389k. John, that is the exact same unit with a very similar view and location as the handy man villa.

To answer this question, I would say "yes", I'd pursue a villa first, then once they're ready to move down here permanently, then roll it into a single family home.

List Price
$290,000
$299,000
$324,500
$324,900
$325,000
$329,900
$339,900
$359,000
$369,900
$375,000
$379,900
$385,000
$389,000

If you were to buy this Villa for $250. Dump about $20K into remodeling, and sell it in 2-3 years. Will it be back to $350 or about that? I mean, does this particular unit have the appeal of the others, or are there reasons why the seller is willing to dump it so cheap???

Anchorage Villas are very popular as 2nd homes or rentals. They are located in Shelter Cove Harbour community which is one of the most sought-after spots on the Island. Currently, they offer a very affordable opportunity for families to own a "part of Shelter Cove".

Take a look at the following table which shows the list prices of Anchorage Villas SOLD from May 2005-January 2006:

List Price
May 2005 –
January 2006
$349,000
$349,900
$350,000
$359,000
$359,000
$359,000
$359,000
$359,000
$364,900
$369,000
$369,000
$369,900
$374,900
$379,000
$384,900
$399,900
$399,900

I walked into this villa yesterday to take photos and I was very impressed with the villa's location, view, and proximity to the pool. This villa is also located somewhat close to the entrance which is convenient.

The In-Laws are getting close to making a move. I want them to do something now while the market is so good. Plus, we would have a place to come for vacations, now.

Good point. TODAY'S prices are very appealing.

I am afraid if they wait till next year, the market on HHI will have already begun to correct itself.

Many experts agree with you. Prices will start to creep up or stabilize, and inventory will gradually decline.

Do you think the market will be better , or worse, on HHI, one year from today?

I truly feel the market will be "better" in one year. Right now, the market is great for buyers and bad for sellers. In one year, I feel the market will be better for sellers, but still great for buyers...although I feel the best time to buy is now.

Hit me back John.

Handy Man Special in Shelter Cove Community - Hilton Head Island, SC

Handy Man Special -- The Price Is Right

Anchorage Villas
Shelter Cove Harbour Community
Hilton Head Island, SC

This villa needs the following:

Carpet replacement
Kitchen Updates (appliances work but are original)

This villa is not on the active market, but the seller is eager to sell and will probably accept $240,000 - $250,000.

Take a look at today's active listings at Anchorage (all units offer basically the same floorplan/location):

.

List Price
$290,000

$299,000

$324,500

$324,900

$325,000

$329,900

$339,900

$359,000

$369,900

$375,000

$379,900

$385,000

$389,000

All Anchorage Villas offer the same floor plan with similar views. You'll notice the beautiful and serene view when you look at these photos which I snapped from the villa yesterday:

Regime Fee at Anchorage is $340/month with an annual insurance assessment of $1600.

Short or long-term rentals are approximately between $10k - $15k

Read below for more information regarding Anchorage Villas:

Anchorage is located at 3 Shelter Cove Lane, Hilton Head Island, South Carolina, within easy walking distance to the marina, shops and restaurants. Other nearby conveniences includes a shopping mall (the only indoor mall on the island), grocery store and art center all of which can be accessed without entering the main highway. Owners also have access to all the amenities of Palmetto Dunes Resort. A free shuttle service, the Dunes Buggy, is available to any location within Shelter Cove and Palmetto Dunes from April 1 until after Labor Day including the beach, which can also be easily accessed by bike. During summer months, a fireworks display is held weekly and can be viewed from the property. A large community park is available as well as a newly established Veteran’s Memorial.

The community consists of twelve two-story buildings with stucco exterior and eighty-eight owners. Each unit has two bedrooms, two full baths, including a whirlpool in the master bath, and a spacious living area. The dining area adjoins the kitchen and has a large garden window. Heating and cooling for each unit is individually controlled. A private deck overlooks the lagoons and magnificent landscape. Some units have a harbour view. There is a covered carport below each unit so that the first floor units are above ground. Each unit also has an outside storage room.

Anchorage has one of the lowest regime fees on the island and the property is debt free. There is a sizable reserve fund available for capital improvements and maintenance. Anchorage has never had a special assessment and does not anticipate one in the future.

Recent renovations include all new flat roofing and flashing replacement. New awnings have also been installed. All parking and paved areas have been sealed, and a current painting program for all buildings is in progress.

The pool and hot tub are second to none on the Island, with new renovations such as surface coating, new pumps and filtering system. The pool is one of the few on the island that is chilled for those hot humid summer days, and warmed during the cooler days to extend the spring and fall seasons. The pool also has a covered area with chairs, tables, refrigerator, serving counter, shower, and bathroom facilities.

Two lagoons on the property are fed from the harbour, with abundant marine life. Both have fountains lighted at night. One lagoon has a walking bridge and both are surrounded with immaculate landscape. Two grills are located on the lagoons for outdoor cooking.