The Herd Mentality in Real Estate

Here are a few interesting facts regarding how our real estate market adjusts for seasonality and how that changes for Property Sellers.  Most people feel that June is the best single month of the year for real estate sales.  If you are simply to browse the total number of properties selling in a given month you would probably be correct, however there is much more to it than the total number of sales.

As an example the total number of residential properties that close per day in June is about 40.  The total number of properties that close in December is 30, which represents a 25% decline in properties selling the last month of the year as compared to June.  When digging into the numbers you would also see that starting in about July fewer and fewer properties come on the market and by the time December gets here there are at least 25% fewer properties on the market than in June.  Less competition is always a good thing for property sellers.

In my experience, we also see a typically higher quality Buyers viewing properties after "beach season" is over and they have a primary focus of finding a quality property, not going to the beach.

Lastly, if your property is a second home that you rent out then accessibility is far greater after vacation season ends and it is easier to get those high-quality, qualified buyers in to see the property.

Don't be fooled by the Herd and 1980's thinking that real estate sales stop in September or October.  The Grand Strand has grown up and has a great population to support year-round real estate traffic, plus the popularity of consumer sites like realtor.com, Zillow and homes.com make searching for your next property easy to start no matter the month.

For an in depth discussion on this topic feel free to reach out to me anytime.

Selling yourself sounds good, huh? Are you aware of the road ahead...?

In today's market, with homes selling quickly and prices rising some homeowners might consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons this might not be a good idea for the vast majority of sellers.

Here are five reasons:

1. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies which work for the buyer and will almost always find some problems with the house.
• The appraiser if there is a question of value

2. Exposure to Prospective Purchasers

Recent studies have shown that 88% of buyers search online for a home. That is in comparison to only 21% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

3. Results Come from the Internet

Where do buyers find the home they actually purchased?

• 43% on the internet
• 9% from a yard sign
• 1% from newspaper

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

4. FSBOing has Become More and More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 9% over the last 20+ years.

5. You Net More Money when Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $208,000 while the typical house sold by an agent sells for $235,000. This doesn’t mean that an agent can get $27,000 more for your home as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.