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Monday, August 27, 2007

Home Painting Tips

This Month's Tip - PaintingPainting is one of those things that you either love or you hate – at least that is my experience. Having recently undergone a whole house update/renovation, we have been left with the lingering taste of painting as one of the final steps in the renovation project. All in all, we are very happy with the painting, but there are some ideas and tips that are now top-of-mind as a result of us working through a few “challenges” along the way. Here’s hoping that they can be of some use to you as well:

You may already know that there is such a device as a paint computer that "reads" an existing paint sample/chip and comes up with a "perfect" match by creating a combination of dye colors that will result in a gallon of paint that is, in theory, identical to the original sample. This is a brilliant way for getting paint that will match a faded color or fill the need when you can't find that old left over paint from the original paint job. My tip on this, though, is to enter this program with caution. While the concept is outstanding, the results can be varied. Before you go buying gallon upon gallon of the "matched" paint, try starting with a smaller sample and apply it to the desired area. Let it dry and live with it for a day or so to make sure that the match is really what you had in mind. Nobody's perfect - not even the paint computer.

A successful paint job hinges just as much, if not more, on the preparation as it does on the application. Masking tape is a wonderful thing, but it doesn't make friends with all surfaces. Be careful about applying masking tape to wallpaper and flat- paint surfaces. If left on long enough, the adhesive may end up removing small amounts of surface paint or surface paper, unnecessarily damaging what you were trying to protect in the first place. Shop around, as there are a myriad of styles, sizes and levels of adhesive for masking tape these days.

If you go through the effort (and sometimes agony) to select "just the right color" for your paint job, you want to make sure that your painter buys exactly that paint. Most painters have developed relationships with their favorite paint store, perhaps establishing volume discounts, etc.. Therefore, unless stipulated (and bearing in mind #1 above) painters might take your "just the right color" and have it "matched" at their preferred supply store. Well, this might be fine for ceiling white paint and low-variable colors, but just ask any paint representative if they think that a Pratt & Lambert paint color can be identically matched on a Pittsburgh Paint color-base or vice-versa. The answer is almost certainly going to be NO. So, if you really, really, really want and need to have that color dead on, then insist that your painter get the exact color name and number mixed under the same paint manufacturer name that you selected. This should lead to successful results.

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Friday, August 17, 2007

State of the Hilton Head Island Real Estate Market

Why Buy Now?

To Our Valued Clients:

In the midst of a depressed residential real estate market and a gyrating stock market, we are frequently asked, "Is real estate in the Hilton Head Island area still a good investment?"

We certainly hope so! But in addition to that, we believe there are a number of objective factors that continue to make real estate in our area an excellent investment opportunity.

There's no denying that the volume of transactions in the Hilton Head Island area is down, as it is nationally. The chart below depicts the number of homes sold on the Island itself from the beginning of 2005 through this past month.

Table 1

As you can see, the volume of transactions dipped sharply in September 2005. The number of contracts written on Island homes improved over 2006 levels in the first two months of this year, then sagged in March, April and May. Over the past two months, however, they have strengthened, to approximate last year's rate.

It's important to view the recent sales trend in the context of a longer time period. The years 2004 and 2005 were extraordinarily robust years. The Island's real estate market has weathered cycles in the past, withstanding downdrafts and recovering sharply thereafter. We believe that

Table 2

forces are in place that will sustain a healthy recovery in our real estate market over the foreseeable future. Foremost among these is the finite amount of real estate available in our market, which has been a primary destination for vacationers and retirees over the past decades. Now, with the onset of retiring Baby Boomers and increasingly affluent Generation X'ers, we

Table 3

see an escalating number of buyers vying for the limited supply of attractive real estate that our region offers.

We also believe that it is important to take a longer-range view to place price appreciation of real estate in a proper perspective. The average selling price of Island homes decreased slightly (1.4%) in the first seven months of 2007, compared with the full year 2006. However, the average price realized so far this year ($985,501) is over 6% higher than the average selling price realized in 2005, the banner year for real estate sales. From 1997 through 2006, the average selling price appreciated an an average annual rate of 11%.

Historically, selling prices for the Island's homes have increased steadily, despite variations in

Table 4

the level of market activity - a combination of trends that is atypical of the national real estate market. This uniqueness, we believe, is due to the primary, growing demand for our real estate among retirees and second homebuyers.

Historically, as well, the appreciation of real estate selling prices has stood up well against other investment opportunities. It's interesting to note, as well, that the value of stocks and gold - a

Table 5

commodity viewed by many as "stable" - has fluctuated much more widely than the average selling price of homes on Hilton Head Island.

Table 6

(1997 values are indexed at 1.0. Values are averages for each year.)

We recognize, of course, that the rates of appreciation that we have seen in the past for Hilton Head Island's real estate values provide no guarantee of what we will experience in the future. All investments are subject to risk. However, as noted above, our local real estate market enjoys what we view as distinctive attributes and demand, which will serve owners well. Additionally, the current market conditions have created what we believe are a number of outstanding buyer opportunities.

Collins Group Realty's sole purpose is to make real estate transactions and ownership in the Hilton Head Island area a totally rewarding experience. We greatly appreciate the opportunity to serve you and hope that you will let us know whenever we can help meet your real estate objectives.

Sincerely,

1 Possum Lane

Chip Collins

Owner and Broker-in-Charge