Living Well Blog - Hilton Head, SC

A note to sellers...

A great value is a great value.  Seems rather obvious.  In the past, however, some 'great values' occupied a different space in the market. 

Historically, the Hilton Head area has seen few foreclosures.  When they did occur buyers, sellers, and appraisers adjusted for them by singling them out as being unique to the market. 

Today, however, the number of bank properties (foreclosures and/or short sales) has increased to the level that buyers and appraisers no longer view them as unique subsets of the market.  In fact, in many respects these bank properties have reset and driven the market over the last 8 to 12 months. 

Buyers largely consider two elements in their purchasing decision: price and condition. 

A property's status as a private sale, bank sale, or something in between is irrelevant.  A great value is a great value.  The reality today is that bank properties are direct competition for all sellers; and until that bank inventory is absorbed by the market it will continue to serve as competition.

Another key element of this equation for sellers to consider: the appraisal. 

In the event that a seller is fortunate enough to garner a 'premium' for their property relative to the market, there is a high likelihood that the property will not appraise at the contract price.  Appraisers will use recent sales and similar comps (in many cases bank properties) to establish a fair market value on your home.  The net result is that the contract will likely have to be renegotiated to reflect the market's true value of the property if the deal is to stay alive.

Pricing is critical to success in today's market.  If you have a question about the true market value of your property today, call Johnny (843-384-8105) or John (843-384-4463) directly.