Charleston Real Estate Update:
Yep, the market is truly showing some nice signs of life and the recent HUGE Boeing Announcement and Tax Credit extension will undoubtedly be a good shot in the arm to keep things moving at an improving pace through the Holidays. That said, we still have over 10,000 properties that have expired or been withdrawn since January 1, 2009 according to the Charleston MLS.
As an expert in the listing and sale of properties in the Charleston/Dorchester/Berkeley County area, I thought it was time to throw a lifeline to all of the folks reeling from the current changes in the real estate market. The lifeline is VERY simple and does not vary based on a specific market area, specific price range, or clientele.
There are 3 basic principles that rule the ability and likelihood of a property to sell and 2 sub-principles...think of a 3-legged stool...if one is off, the other legs have to compensate
- LOCATION- Although the most important, this is the one item that you cannot change, stage, spruce up, or otherwise effect. A seller simply cannot move their property or generally change what it is surrounded by.
- CONDITION- This is the BIGGEST opportunity for the seller to influence a Buyer's perception of their property through de-cluttering, staging, cleaning, repair of broken items, replacement of worn items, landscape improvements, etc. In short, your curb appeal and the walk to the front door SET THE STAGE for how the Buyer will analyze the rest of the property. basically if the outside appearance is immaculate, a Buyer will likely "float" their way past some minor obstacles inside. if the wrong first impression is given, the fine-tooth-comb is brough out. It really is like starting a showing with 1 strike against you. So imagine if your price is on the high end and your property is not in perfect condition...NO WAY to compete with the army of HGTV watching and doing folks out there.
- PRICE- This is the dreaded one that folks do not like to pay attention to...the game is changing every day as it relates to price but luckily, it is the one area where the data is really in black and white and can be verified by every Buyer and Seller. In short, why on earth would someone pay more for your home than for the same or similar home in your area??? You've got it, location and condition! If you don't have those 2 items as differentiating factors, listing the property at or near the upper end of yoru target price range is a huge waste of time and energy. I am a big believer in providing objective advice ie: THE TRUTH to a prospective seller, knowing that I cannot help everyone. I can however help someone that is willing to understand 2 things:
a)unless you have personally sold over 300 properties in the last 5 years, it is likely that I have a leg up when it comes to the experience of preparing, pricing, and negotiating the sale of real estate in the Charleston market...I do however need you as the seller to "sell" me on why you purchased your property and the attributes that make it special to you. if your property is too unique, the appraisal game may catch you and force you to fit into a neat little box they can categorize away to Cover their Rears (depends on the appraiser, their experience, and confidence of course)
b)the market DOES NOT CARE what a seller wants or needs to get out of the sale of a property. Put simply, if the market tells you that the home is worth $500,000 and the reality of your situation is to be moved to Atlanta in 90 days (and you want to have your home sold by then) but the average time on the market is 180 days, you will have to price your home aggressively at $450,000 or below to ensure that your life is not thrown completely off track by trying to play a game with the market. There are tricks to the trade but statistics tell a pretty good story of what to expect as long as you pay attention to balancing the 3 legs.
Work with a Realtor that actually SELLS property...experience is VERY important but if someone has 1 year of experience but has listed and sold 20 properties, they are on the right track and should be listened to...your Aunt Betty's neighbor who got their license to "invest" in their own properties and to list the ladies in the bridge club, may very well NOT BE THE BEST CHOICE! Not to say there aren't some excellent part-time agents in the market but would you want heart surgery performed by the guy that had done 2 or 300?
All of these Expired and Withdrawn listings can really be summarized fairly easily into: folks that were unrealistic in their pricing expectations versus their condition and location, folks that worked with an agent that "bought" a listing by listing it too high initially and therefore losing the most critical time in a listing (first 60 days) before lowering often below where it would have been sold if priced aggressively from the beginning, working with an agent that took AWFUL pictures that did not showcase the proper attributes of the home or property, or folks in an unfortunate mortgage position that possibly inhibited them from selling.
There are lots of folks that do in fact fall into that last category, but there are just as many folks that are stuck in 2006 wishing and crossing fingers for a return to 2006 pricing. Now it is time for that REALITY CHECK!!!
- If you owned a home that was worth $500,000 in 2006, it is likely worth $375,000-$400,000 today. Even more eye-opening than that though is that pricing is likely to remain flat or increase just slightly for the forseeable future...assuming an annual appreciation of 5% even(which is aggressive), it will take you 5+ years to get back to that $500,000 level...oh and by the way, that does not take into account that you would have likely paid at least that $100,000 in mortgage payments over the 5 year period.
- This is the one that gets people...your life change that warranted the decision to sell, probably will not wait that 5+ years so you can either take a hit now (assuming your mortgage makes that possible) and work with a great agent to get an equal or better deal on your subsequent purchase...or stay in a home that may not adequately address the needs of you or your family. The same holds true with an investment...in the end, the other side of the coin ie: "losing some" does happen on occassion. Throwing bad money after good money never makes sense! So re-allocating the monthly amount spent carrying a sour investment, to one of the multitude of winning investments available today turns you from a collector of properties to an investor objectively managing your portfolio.
I you or someone you knows wants this kind of realistic, experienced, and focused advice on how to sell a property, buy your home, or manage your investment portfolio, I am here to help with the best team in the business (www.YourWattsTeam.com) and look forward to being the voice of reason and lifeline you need to get back on track and focus on THE TRUTH of what needs to be done to survice and thrive in today's real estate market!
Sincerely,
Josh Watts
www.LifeinCharleston.wordpress.com
Your Watts Team- Leader (www.YourWattsTeam.com)
Coldwel Banker United, Realtors
843-478-8228
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