Even the passive observer of the
current Charlotte metropolitan area real estate market has to come quickly to
the conclusion that we are firmly in the grip of a “seller’s market.” Inventory of resale homes, townhouses and
condos is low, buyers are many, and the net result can be multiple offers and
contract prices being bid up above listing prices. Both buyers and sellers can be put off by
this, like many people in somewhat complicated circumstances, choosing to “sit
things out” until the market settles down a bit. My response to the confusion goes back to our
company motto: “Solid analysis identifies great opportunities.”
From the seller’s perspective, I
would suggest that you take a deep breath and do your homework. There is no need to jump quickly into the
market, but there is also much to be gained by “selling high.” You cannot know what “high” really is unless
you research recent sales of nearby comparable homes. In a quickly changing market, data from 6
months ago can be outdated. And
comparing the sale of a 1,400 sq.ft. ranch to a 2,200 sq.ft. two-story
home—even in the same community—does not lend itself to accurate analysis or
reliable conclusions. The data you
gather is only as good as the source you use to gather it. Those “free” sites like Zillow and Trulia
notoriously use outdated and incomplete data, and they refuse to disclose their
methods for calculating estimates of value—those infamous “Zestimates.” I would suggest that the reason they don’t
disclose their method of calculation is because those “Zestimates” are very
often wildly and notoriously inaccurate and misleading. You can’t do serious analysis “on the
cheap.” Sellers often look to these
sources to decide whether it makes sense to consider selling their home. But if the information they get inaccurately
leads them to believe they are unlikely to get a price sufficient to make a
move attractive, they may pass on the notion and miss a great opportunity to
improve their financial circumstances going forward. Likewise, if the information they get
inaccurately lead them to believe they can get a higher price than the market
will truly bear, they can waste months, countless home tours and intrusions on
your privacy trying to sell a home for an unrealistic price. The decisions you make are only as good as
the information on which they are based.
Solid research identifies great opportunities.
For buyers, the same principles
apply. You cannot identify a genuinely
good value unless the data on which you are basing your conclusion is accurate
and reliable. Emotion may play a role in
any purchase decision, but in my view, the primary motivator should be the
conclusions you reach after careful analysis.
This is how you identify truly good opportunities. The data—the numbers—don’t lie. Regardless of the fact that we are currently
in the midst of a traditional seller’s market, good opportunities always present
themselves—if you have the ability to identify them. As the saying goes, “keep your powder
dry.” Make sure you are pre-approved for
your financing so you know what you can afford and so you have a pre-approval
letter to submit promptly with an offer.
Don’t get discouraged, and position yourself to move quickly on the good
value when you identify it. Again, it is
solid analysis that will identify the great opportunity.
Of course, I work hard with both
sellers and buyers to make sure the information that leads to some of the most
important decisions they make in their lives—choices on when to buy and when to
sell a home or investment property—are based on current, accurate information
and solid analysis. I would be more than
happy to help you. You can search the
entire Charlotte area real estate market free of charge or obligation on my web
site: www.EricDorerRealEstate.com And when you are ready for more personal
attention, please don’t hesitate to contact me.
Identifying great real estate opportunities is what I do all day, every
day. I would be happy to do it for you.
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