Is Waiting For Spring Your Best Strategy To Sell?

This is an age-old question that continues to be asked even in the 21st Century.  I believe this question must have started back in the 1950's (or before) when potential buyer's had to drive around to see every property and they didn't want to do so when the weather was cold.  I have heard the question enough that it finally caused me to do the research to see if it is still better to wait until spring like it was a few decades ago.  The market facts for the Grand Strand show two very interesting things; First the spring quarter (1st quarter) is the slowest period for sales in our market.  Second, the difference between the worst quarter and the best quarter is almost insignificant.  When you look at the total number of properties sold broken down over the four quarters we see that our area is very consistent.  Probably most areas are now, unless you have to contend with 4-5 feet of snow on the ground.  I beolieve there are a couple good reasons for this and the best one is that the Grand Strand has a large enough population now that it isn't so seasonal anymore (have you been on Hwy 17 lately since September?).  We have a large enough buyer pool to support year-round real estate sales.  Sure, the market is still seasonal for bathing suits, restaurants and gold courses, but not real estate.  The second reason is due to the advancement in technology.  Shopping for real estate starts on a couch somewhere and grows into a visit to the property.  If a potential Buyer is sitting in Toms River, NJ thinking of buying in Myrtle Beach and sees a property of interest they won't wait until beach weather to come see it.  

So, is it better to wait?  Waiting or moving forward to sell a property should be decided by your desire to sell, financial information and the other properties you'll compete against - but not the weather.

If you would like to see the quarterly report for selling volume email us at info@benguyton.com with Quarterly Report in your subject line.

What you should demand from any real estate agent you consider

Are you thinking of selling your house? Are you dreading having to deal with strangers walking through the house? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of selling. A great agent is always worth more than the commission they charge just like a great doctor or great accountant.

You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish the average agent from the great one.

Here are the top 5 demands to make of your Real Estate Agent when selling your house:

1. Tell the truth about the price

Too many agents just take the listing at any price and then try to the ‘work the seller’ for a price correction later. Demand that the agent prove to you that they have a belief in the price they are suggesting. Make them show you their plan to sell the house at that price – TWICE! Every house in today’s market must be sold two times – first to a buyer and then to the bank.

Every house in today’s market must be sold twice: 1st to the buyer, then to the bank.

The second sale may be more difficult than the first. The residential appraisal process has gotten tougher. A recent survey showed that there was a challenge with the appraisal on 24% of all residential real estate transactions. It has become more difficult to get the banks to agree on the contract price. A red flag should be raised if your agent is not discussing this with you at the time of the listing.

2. Understand the timetable with which your family is dealing

You will be moving your family to a new home. Whether the move revolves around the start of a new school year or the start of a new job, you will be trying to put the move to a plan.

This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. You agent cannot pick the exact date of your move, but they should exert any influence they can, to make it work.

3. Remove as many of the challenges as possible

It is imperative that your agent knows how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.

Remember: If you have an agent who was weak negotiating with you on the parts of the listing contract that were most important to them and their family  (commission, length, etc.), don’t expect them to turn into Super hero when they are negotiating for you and your family with your buyer.

4. Help with the relocation

If you haven’t yet picked your new home, make sure the agent is capable and willing to help you. The coordination of the move is crucial. You don’t want to be without a roof over your head the night of the closing. Likewise, you don’t want to end up paying two housing expenses (whether it is rent or mortgage). You should, in most cases, be able to close on your current home and immediately move into your new residence.

5. Get the house SOLD!

There is a reason you are putting yourself and your family through the process of moving.

You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with selling. Do not allow your agent to forget these motivations. Constantly remind them that selling the house is why you hired them. Make sure that they don’t worry about your feelings more than they worry about your family. If they discover something needs to be done to attain your goal (i.e. price correction, repair, removing clutter), insist they have the courage to inform you.

Single Family Home Sales up 30% in 2014. Is it really? Read on to truly understand what is happening in the market.

We all yearn for good news and the real estate market is no different.  After a 5 years slide to the bottom of pricing we all started getting really excited in 2012 when the reports stated that prices had "bottomed out".  As we look back a couple years now to 2012 we see that those reports were true; prices did bottom in 2012, then they got stuck there!  Sure, there has been a few bright sub-markets that have seen anywhere from 2% - 4% appreciation over the last couple years, but most areas along the Grand Strand are the same prices as the spring of 2012.  Another absolute bright spot for the single family market here has been demand.  Demand jumped up last year from a pretty slow 2011 & 2012, Then 2014 came in like a lion! Looking at the comparison of number quarter to quarter the selling pace has increased a whopping 30% this year in single family homes.  That alone is great news, whether you are a Buyer or Seller, and usually enough information for us to start posting the news on every social site available...but let's dig a little deeper.  You see, with the increase in demand last year and the slight increase in prices it was enough to send the builders in our market into a frenzy.  You can see the trusses flying in a lot of neighborhoods around the beach.  This observation was enough to cause a more in depth look at the demand side of our market.  What I found, after eliminating the sold homes that are new, or never lived in, is that for existing homes along the Grand Strand the market has improved exactly 3%.  Not 30%.  There has been a 27% increase in New Home Sales in 2014 over 2013.  What does this mean to you if you are a Buyer or Seller of real estate right now?  As a Buyer it means you better get your act in gear and find your motivation to buy the house you want.  The New Home market is just now heating up and the builders are willing to do things to get you to buy that they won't do next year.  It also means that when you look at the market median pricing that we should see small increases as the next 12 months goes on.  While this can be an unimportant number, the Builders will use it to justify their pricing and reduced incentives.  These figures will also drive the existing home market causing many sellers to ask too much for their homes and remain fixed on that price, thereby reducing the selection of correctly priced homes available.  

If you are a home seller right now - beware.  There is a new competitor in town.  The last 5 years your competition has been distressed homes for sale.  Today, as I write this there are 3203 homes on the market and 216 of them are distressed.  They don't effect your pricing anymore.  In the past a Buyer may be willing to pay more for your home because of condition over a foreclosure.  Today, your competition is NEW.  Shiny, bright, pick-what-I-want, NEW.  Your competition is more fierce now.  As an existing home seller you need to know the truth about the market and understand what you are competing against.  Sure, not all Buyers want New and not all New Homes are in desirable areas.  Many builders are having to build under "value engineering" strategy in order to make a profit, so you lose some of the bells and whistles.  I encourage you to dig deeper than the surface of information you typically receive about the market to be fully informed on how to price your home.  Don;t be misled to believe the housing market is up 30%, because it is not.  The market for your type of house is up 3%.  Three percent higher demand against an 8.5 month supply of homes doesn't typically make headlines.  

Let's be clear.  Factoring in all areas and all categories of the market along the Grand Strand we have seen improved demand and that is great news.  Single family homes sales are outpacing condo sales by a wide margin and mainly due to the New stuff.  There is less than 3% New Condo sales volume here right now, so condo owners aren't competing with New...yet.  

I hope you've found this information helpful and if it raised a few questions let me hear about it.  If I'm not meeting with you about your property, or showing your property to a Buyer my head is usually buried in the figures.