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, qualified buyers are many, and
the net result can be multiple offers and contract prices that are bid up above
listing prices. In addition, mortgage interest rates have been hovering in the
7% range for months, making home payments less affordable than they were only
two years ago. 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 In a quickly changing market, data from 6 months ago can be outdated.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 Those “free” sites like Zillow and Trulia notoriously use outdated and incomplete data, and they refuse to disclose their methods for calculating estimates of value—those infamous “Zestimates.”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 more 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.
