Bradley Ransome

Real Estate Development Outlook in South Carolina

As South Carolinian businesses continue to reopen following the pandemic, Millennials who had fled to the suburbs are now returning to urban centers. This trend is further supported by major infrastructure investments in the Greenville area, as well as a statewide surge in new builds. When viewed all together, these statistics suggest that the South Carolina real estate market is in a healthy position.

Compared to much of the country, South Carolina seems to be meeting consumer demand at a faster pace, helping to offset the overall rise in housing prices over the last 18 months. Bradley Ransome takes a moment to explore why South Carolina’s real estate market is in such a good place and discuss what this means for the future market outlook.

Young People are Finally Returning to Columbia, Charleston, and Mount Pleasant

At the height of the COVID-19 pandemic, it seemed as if anyone living in a major city wanted to escape to the perceived safety of the suburbs. However, as businesses across South Carolina have begun to reopen, many of these same people are now returning to their urban apartments and condos.

This trend is being driven in part by a desire to be closer to work, but it’s also being fueled by a newfound appreciation for the many amenities that cities have to offer. After months of being cooped up at home, people are eager to take advantage of all that downtown Charleston, Columbia, and Greenville have to offer in terms of restaurants, nightlife, and culture.

Investment in Upstate Infrastructure is Driving Population Growth

In addition to the recent influx of people moving back to South Carolina’s major cities, the state is also seeing a population boom in its upstate region. This is being driven in part by several multi-million-dollar infrastructure plans to expand public areas and add to the city’s already family-friendly environment.

These infrastructure improvements are also helping to attract new businesses and residents to the area, and they’re making it easier for the local citizenry to get around. When combined with the many new residential developments popping up in the area, it’s clear that the upstate is in the midst of a major boom.

Bradley Ransome

New Home Construction is Far Above the National Average

Finally, it’s worth noting that South Carolinian home development is currently outpacing the national average, ranking fourth in the nation. This is significant because it suggests that the state is meeting consumer demand at a much faster pace than the rest of the country.

It also bodes well for the future of the South Carolina real estate market, as the number of new homes being built is likely to help offset inflation at a time when housing prices are well above their true value. While this may cause a slight dip in housing prices next year, buyers will be in a better position to purchase new homes.

Looking Ahead: Poised for Continued Growth

When you take all of these factors into account, it’s clear that the South Carolina real estate market is in a good place. Prices are still quite high but they’re slowly lowering to a more stable place. Overall, the market is poised for continued growth as people return to the state’s major cities and the upstate region continues to boom.

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Home Renovations That Will Increase Value and Those to Probably Skip

About 76% of homeowners in the United States completed home renovation projects — and there hasn’t been much of a slowdown since.

Despite economic uncertainty, real estate remains one of the smartest investments. Home renovations aim to make that investment even more solid, not all of them improve a home’s value.

Here, Bradley Ransome discusses some home renovation projects, including some surprises, to consider when there’s a goal of increasing your home’s worth — and a few to avoid.

Replacing a Garage Door

Investing in a new garage door may not be the first thing that comes to mind when attempting to boost a home’s value, but according to Bankrate, it offers the most bang for your renovation buck.

New doors average around $4,000, leading to an average resale increase of nearly $3,800. That’s a 93.3% return on the investment. That’s the power of curb appeal.

Updating a Bathroom

Buyers often have ideal kitchens and bathrooms in mind when looking for a home, so those areas receive extra scrutiny.

Adding a bathroom helps increase a home’s value tremendously, but updating a bathroom to incorporate more modern surfaces, a larger shower, and updated vanities often leads to a 57% to 75% recoup of costs. This renovation typically ranges between $6,000 and $16,000.

Ditch Vinyl Siding for Stone

Replacing all of a home’s siding is a significant expense (it’s not uncommon to see $30,000 estimates depending on the home’s age).

But replacing just part of a home’s siding with stone veneer is a third of the cost (about $11,000) and ups a home’s resale value by over $10,000. Stone entryways are increasingly popular.

Other solid bets:

  • Renovating a deck, adding front yard and backyard landscaping, including planting trees
  • Replacing the HVAC system
  • Updating windows
Brad Ransome

Do Not Go with Offbeat Flooring and Backsplashes

While new floors and tiling in kitchens and bathrooms can help value, overly quirky patterns, textures, and colors are risky. Homebuyers want to personalize their home, and such accents can hurt the value since they will likely need to be replaced.

Avoid Extravagant Lighting Fixtures

Lighting fixtures show off the personality of a homeowner, but when they’re too lavish or trendy, it may impact the value. Such fixtures usually have a popularity expiration date and can overshadow other fantastic qualities in a home.

No Excessive Carpeting

Carpeting has fluctuated in popularity for over 60 years (the less said about 1970s carpeting in bathrooms the better). Carpeting some rooms won’t generally make a big impact on a resale value but carpeting everything upstairs and downstairs almost always negatively impacts a buyer’s interest in a home.

Against What You May Think, Do Not Add a Pool

Yes, having a private pool during the summer sounds like heaven, but the return on investment is usually far from heavenly. According to HouseLogic, even in places where the weather regularly turns sweltering, adding a pool only adds 7% to the home’s value at the most.

Blame the high cost of installation (usually between $30,000 to $50,000) and the burden of maintenance.

Other modern renovations to stay away from:

  • Bold and bright paint
  • Kitchen and bathroom renovations that are too high-end or personalized
  • Combining bedrooms or removing a bedroom for a large closet
Bradley Ransome

Rewards of House Flipping: It Brings More Than Money

Those with just a speck of interest in real estate often consider house flipping, but only a select few make the plunge. But while every investment comes with risks, the rewards of house flipping almost always outweigh them, especially when the flipper has an eye for potential and actually understands the market.

With the economy bouncing around all over the place, keen or wannabe house flippers should pay attention to all the benefits house flipping can bring. After all, Bradley Ransome says it isn’t just about the money.

The Top 5 Rewards of House Flipping

1 Exceeds Full-Time Income

Both full- and part-time flippers can make as much (if not more) than working a nine to five every day. Even those who flip just two or three houses every year can generate enough to exceed their full-time income.

Flippers who scale to five or more houses per year generating at least $20,000 to $30,000 from profit each start making six figures in relatively no time according to Brad Ransome.

2 Improves Understanding of the Local Market

From the moment house flippers decide to live their dream, they start to learn about the local market. Browsing the “for sale” adverts and perusing the recently sold lists gives invaluable insight into what home styles people prefer in the area — modern or farmhouse?

Over time, this research and newfound understanding generate more profit as flippers become increasingly adept at picking out money-making potential.

3 Builds Networks

First flips are daunting, but even newbies start creating loads of new industry contacts right off the bat, including:

  • Contractors
  • Realtors
  • Building inspectors
  • Attorneys
  • Other investors
  • Insurance brokers

Everybody they meet and work with becomes an integral part of future real estate investments and even when working on their own home.

Brad Ransome

4 Develops Entrepreneurial and Personal Skills

Building a business is hard work, especially in the flipping industry. People fail constantly, but it gives new flippers a chance to develop their business acumen and personal ethics. They’ll gain construction and real estate experience. Not to mention they’ll learn the basics of setting up, owning, and running a business.

And after the first successful flip, they’ll feel empowered, ultimately leading to increased confidence and courage. These invaluable skills aren’t just crucial for profit gain; they’ll shine through in other aspects of life for all-around personal development.

5 Enhances the Neighborhood Community

As mentioned, house flipping doesn’t just turn a substantial profit. It offers exceptional opportunities for flippers to give back to their community. First, it transforms distressed, ugly houses into stunning homes for new families, positively impacting the neighborhood’s quality of life.

Flipping also increases property values, heightening the wealth and property tax revenues for the community’s police, education, and fire services. On top of that, it opens up a plethora of employment opportunities for real estate agents, lenders, attorneys, local contractors, tradespeople, suppliers, and title companies.

In a nutshell, house flipping helps put food on the table and can even rescue homeowners facing bankruptcy, financial hardship, and foreclosure.