The Importance of Pricing a Home Right - Data Updated 10/25/23

In my October 12 posting, FIRST HOME SELLS FOR OVER $1,000,000 IN SCCL, I said that "some (folks) are now listing higher than current comps would suggest is appropriate, and are having to reduce their asking price."  As a follow-up to that, I want to share some data on recent price reductions.

The information below was updated on 10/25/23.

SCCL Single Family Residences (SFRs)

Coming Soon/Active:  

Of the 23 current listings, 13 have had price reductions ranging from $10,000 to $50,900.  Ten of those have been reduced $15,000 or more, including 4 that have been reduced $30,000 or more.

 

Currently Under Contract:

Of the 14 listings that are currently Under Contract, 6 had price reductions, ranging from $5,000 to $20,100.  Three of those were reduced $19,900 or more.

 

Closed since September 1st:

Of the 16 properties that have closed since the beginning of September, 4 had price reductions ranging from $15,100 to $25,000.  The final sales price for those 4 ranged from $25,000 to $39,000 below the original list price.

 

See below for the stats regarding final close price in relation to original list price. 

1 closed above the original list price

5 closed at the original list price

3 closed at 99% of the original list price

7 closed at 90-98% of the original list price

Carriage Homes and Villas (CHVs)

 

Coming Soon/Active:  

Of the 4 current listings, all 4 have had price reductions ranging from $5,000 to $40,000.

 

Currently Under Contract:

Of the 3 listings that are now Under Contract, none had price reductions.

 

Closed since September 1st:

Of the 2 properties that have closed since the beginning of September, the final sale price for those 2 ranged from $10,000 to $14,900 below the original list price.

See below for the stats regarding final close price in relation to original list price. 

1 closed at 97% of the original list price

1 closed at 96% of the original list price

 

ARE THERE MORE CASH OR LOAN SALES IN SCCL AND TREE TOPS?

SCCL Single Family Residences (SFR)

Of the last 100 SFR homes that sold, 58 sold for cash and 42 sold with a loan.

This goes back to 10/26/22.

SCCL Carriage Homes and Villas (CHV)

Of the last 50 CHV, 26 sold for cash and 24 sold with a loan.

This goes back to11/15/20.

Tree Tops

Of the last 100 homes that sold in Tree Tops, 46 sold for cash and 54 sold with a loan.

This goes back to 4/9/21.

 

Please note that this information is based on sales posted on MLS.   

It does not include homes sold by owners (FSBOs) or homes that were sold as exclusive listings, not posted on MLS.  Exclusive listings include homes that a brokerage lists and sells without offering them to other brokerages and may limit the exposure (and possibly the sale price) that a listing gets. Sometimes a brokerage with an exclusive listing will post it on MLS after it goes under contract or after it closes.  When this happens, the MLS listing may show zero (or just a couple) of Days on Market.

FIRST HOME SELLS FOR OVER $1,000,000 IN SCCL

The first home to be listed for over $1M in SCCL has become the first home to sell for over $1M.  The home, a Cumberland Hall with a beautifully finished basement, sunroom, patio, large screened porch, and a lovely golf course view, listed for $1,296,000 on August 3rd and went under contract two days later.  It closed on October 12th for $1,175,000.  

 

As I noted in my posting on August 26, prices have been rising here in Sun City Carolina Lakes.  Homes that are in excellent condition and are priced right generally sell faster and often at a higher price than those that need work.  Since that posting, it seems that many folks have decided this is a great time to sell. That being said, some are now listing higher than current comps would suggest is appropriate, and are having to reduce their asking price.  Yes, prices are going up, but shooting for the stars isn't always a great plan.  

 

Currently, one Manor home is listed at $1.1M and another Manor is listed at $850K.  There are three homes (1 Manor and 2 Summits) listed between $749,900 and $789,000, and one Summit went under contract at a list price of $774,900 this month.  

 

If you'd like to get daily updates on current listings in SCCL, TreeTops, or other nearby communities, please contact me.  

 

Remember that I'm always available to  answer your real estate questions and help you in whatever way I can.

Growing Your Net Worth with Homeownership

Article Courtesy of Keeping Current Matters/The KCM Blog

Take a moment to imagine where you want to be in a few years. You might be thinking about your job, money, wanting more stability, or goals you want to reach soon. Is homeownership a part of that vision? If it is, you should know owning a home has a whole lot of financial benefits.

One of the many reasons to buy a home is that it’s a great way to build wealth and gain financial stability. That’s because the value of most homes increases over time, which in turn grows your net worth. Here’s how home values are rising right now. According to Zillow:

“The total value of the U.S. housing market – the sum of Zillow’s estimated value for every U.S. home – is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.”

Basically, homeownership is a tremendous wealth-building tool. And with home values back on the rise across the nation, now might be a good time to consider if owning a home is something you want to reach for.

Here’s a look at some data to see how much owning a home can really make a difference in your life.

Household Net Worth Is Rising

Data shows that while those in the top 1% saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below):

For many of those people, the rising value of their home plays a big part in that.

Owning a Home Helps You Achieve Financial Success

You can tell homeownership had a lot to do with that growth because there’s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

 “. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

The big reason why? Homeowner’s build equity. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that’s the largest contributor to their net worth. Here’s the data from First American to prove it (see graph below):

The blue portion of each bar represents housing as a portion of net worth – and it’s clearly a bigger contributor than other investments like stocks, gold, and cryptocurrencies. As you can see, across different income levels, homeownership does more to build the average household’s wealth than anything else.

Bottom Line

One of the biggest benefits of owning a home is that it can provide an avenue to grow your net worth.

Key Skills You Need Your Listing Agent To Have

Article Courtesy of Keeping Current Matters / The KCM Blog

Selling your house is a big decision. And that can make it feel both exciting and a little bit nerve-wracking. But the key to a successful sale is finding the perfect listing agent to work with you throughout the process. A listing agent, also known as a seller’s agent, helps market and sell your house while advocating for you every step of the way.

But, how do you know you’ve found the perfect match in an agent? Here are three key skills you’ll want your listing agent to have.

They Price Your House Based on the Latest Data

While it may be tempting to pick the agent who suggests the highest asking price for your house, that strategy may cost you. It’s easy to get caught up in the excitement when you see a bigger number, but overpricing your house can have consequences. It could mean it’ll sit on the market longer because the higher price is actually deterring buyers.

Instead, you want to pick an agent who’s going to have an open conversation about how they think you should price your house and why. A great agent will base their pricing strategy on solid data. They won’t throw out a number just to win your listing. Instead, they’ll show you the facts, explain their pricing strategy, and make sure you’re on the same page. As NerdWallet explains:

“An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.”

They’re a Great Negotiator

The home-selling process can be emotional, especially if you’ve been in your house for a long time. You’re connected to it and have a lot of memories there. This can make the negotiation process harder. That’s where a trusted professional comes in.

A skilled listing agent will be calm under pressure and will be your point-person in all of those conversations. Their experience in handling the back-and-forth gives you with the peace of mind that you’ve got someone on your side who’s got your best interests in mind throughout this journey.

They’re a Skilled Problem Solver

At the heart of it all, a listing agent’s main priority is to get your house sold. A great agent never loses sight of that goal and will help you prioritize your needs above all else. If they identify any necessary steps you need to take, they’ll be open with you about it. Their commitment to your success means they’ll work with you to address any potential roadblocks and find creative solutions to anything that pops up along the way.

BankRate explains it like this:

“Just as important as the knowledge and experience agents bring is their ability to guide you smoothly through the process. Above all, go with an agent you trust and will feel comfortable with. . .”

Bottom Line

Whether you're a first-time seller or you’ve been through selling a house before, a great listing agent is the key to success. Connect with a real estate professional so you have a skilled local expert by your side to guide you through every step of the process.