Dear Clients and Friends~
The economy is moving once again, but the latest real estate market trends for the Island show that inventories increased across the board in April as side line sellers re-entered the real estate market on Hilton Head Island. As well, in what is normally a barometer month, we saw sales drop in almost every price category. This has the net effect of further downward pressure on our prices.
If you are getting good activity on your virtual tours, but are not getting in person previews from agents or buyers, it means that the value is still just too high for a buyer or agent to react. It also tells us also that it is not a function of the marketing, but the market. Buyers simply will not pay more than fair market value.
I should mention that I started my real estate career with Dunes Marketing Group in 1986 and we watched prices drop by approximately 50% in just one year. It took almost 10 years to recover this loss in value on each of our properties and was a very long and slow climb from 1986-1996. Although no one has a crystal ball, real estate is governed by the simple law of supply and demand.
That said, I would suggest going to a new value based on the building of inventory and drop in sales. In order to sell, you have to get in front of the market and make the offering compelling. Buyers are ready and waiting, but will not react to overpricing. The advantage to you is that if you are the first you stand to make more than being the last. This is Island Wide and not limited to one particular property, area or category.
I do not want you to chase the market, I want you to beat it! The key is not to leave any money on the table (see the attached graph as it shows how a seller can beat this market).
Let us know if you would like to discuss this further and have us design a pricing strategy with you.
Dear Clients and Friends~
The economy is moving once again, but the latest real estate market trends for the Island show that inventories increased across the board in April as side line sellers re-entered the real estate market on Hilton Head Island. As well, in what is normally a barometer month, we saw sales drop in almost every price category. This has the net effect of further downward pressure on our prices.
If you are getting good activity on your virtual tours, but are not getting in person previews from agents or buyers, it means that the value is still just too high for a buyer or agent to react. It also tells us also that it is not a function of the marketing, but the market. Buyers simply will not pay more than fair market value.
I should mention that I started my real estate career with Dunes Marketing Group in 1986 and we watched prices drop by approximately 50% in just one year. It took almost 10 years to recover this loss in value on each of our properties and was a very long and slow climb from 1986-1996. Although no one has a crystal ball, real estate is governed by the simple law of supply and demand.
That said, I would suggest going to a new value based on the building of inventory and drop in sales. In order to sell, you have to get in front of the market and make the offering compelling. Buyers are ready and waiting, but will not react to overpricing. The advantage to you is that if you are the first you stand to make more than being the last. This is Island Wide and not limited to one particular property, area or category.
I do not want you to chase the market, I want you to beat it! The key is not to leave any money on the table (see the attached graph as it shows how a seller can beat this market).
Let us know if you would like to discuss this further and have us design a pricing strategy with you.
