2015 has been a pretty good year for real estate agents, sales are up and of course we would all like to take credit for that improvement. However, the reality of the situation is a little more complex. First off, different areas of the country have been recovering at different rates and most of those results are based on different criteria of success. Some areas of the south, parts of South Florida in particularly, have shown some remarkable improvements. Throughout the country there have been bright spots which have led us all to believe that the market is back. Well, not so fast. I spoke earlier of different criteria bench marking success; success for whom, the realtor or the seller. In the High Country of North Carolina we are seeing both. A gradual increase in lower to mid-range markets is occurring. There may not be a bidding war but many sellers have been able hold their own against the low-ball bid. Higher range homes especially the largest of the class are still showing sluggish sales and rather steep discounts when the contract is finally negotiated. It’s not as bad as the previous 7 years and it is improving, albeit slowly. I am quite sure if the economy continues its improvement, so will the rate of sales and hopefully price. It all depends on inventory and this begs the question, how much inventory is out there and how much of it needs to be moved before we reach equilibrium. Time will tell and here is where many seller need to be honest with themselves concerning the sale of their property. If you have the financial where-with-all as a seller and you believe the gains made will outpace the carry then by all means wait it out. If the financial strength is not there then you need to make a decision based on determining your best loss. The last thing a person want to hear when faced with the reality of a loss is, “ Your first loss is often times your best loss.” That sobering truth can often times be the catalyst to induce a person into overcoming the inertia of a bad investment and begin doing something about it. Knowing the nuances of the current market and understanding where, in all probability, it is headed, is the best move anyone can make when establishing a list price and ultimately negotiating a sales price
In short, speak with your Realtor, ask his opinion and ask for data backing that opinion up. Look at short and long term pricing adjustment based on your unique situation and formulate a strategy that will bring the best results. Real estate is a business that is best attended to when emotions are removed and results are the key motivating factor. If you have a piece of property and you are unsure of what to do with it, give us a call, schedule a meeting and we will do our best to help make the most of that investment. Peak Real Estate will provide you with honest answers to your real estate investment questions.