As I was driving over the bridge into Bluffton, the traffic starting backing up driving eastbound on Hwy. 278; in fact, it backed up almost all the way to Interstate 95. 

With my local knowledge, I knew that there were several alternatives to get around the traffic – driving further south on Interstate 95 to Exit 5 or taking the Bluffton Parkway.  I knew that all these visitors in their SUVs with foreign license plates did not know these “local secrets.”

I think there is a lot of value in local knowledge.  This is not only true relating to traffic, but in real estate as well.  So many people make mistakes because they don’t ask an expert – remember, not all markets are created equal. 

And the next time you are in a traffic jam, remember that there are other options.  Give me a call and I’ll tell you how to get around it and if you need help with real estate, I can help you with that too.

When you decide to buy or sell property on Hilton Head Island, shouldn’t you choose a real estate company and agent who is working hard in the market and seeing results. 

If you would like an updated market analysis of your property or if you have any other questions concerning the real estate market on Hilton Head Island be sure and let me know.

That is often the problem with free advice – it ends up costing you more than you know.  The seller’s brother knew nothing about real estate and advised his brother incorrectly – in the end causing him to lose money. 

It is important to consult a reliable source when dealing with the real estate market; you wouldn’t ask a farmer to diagnose your illness – you would want a reliable doctor.

This makes me think of the real estate market.  Right now there is a lull in the market; people are just holding off.  But it is important to understand that people are not going to put off their decision, they are just waiting.  Yes, it is slow now and it is not the best time to sell, but eventually buyers will come back to the market and we will see the market rebound as a result of all the pent up demand.

That’s right, in this real estate market, nobody is happy – not even the buyers. 

I did not realize this until I was talking to a Realtor friend of mine from Chicago today.  We, as Realtors, think that purchasers are happy and excited because they are getting some phenomenal deals in this market.  But in reality, buyers are still nervous about their purchases as prices continue to fall – they want to know if their new home is going to retain its value.

We all want this real estate market to turn around, so we can all be happy!

It is important to realize that the buyers are in charge of the market at this time. 

It reminds me of the time that Jane and I were driving back to Hilton Head from Jacksonville and Jane wanted to stop at Krystal.  I decided to go get some gas while she was getting the food.  There were two gas stations right across the street from each other  - one advertising gas for $2.39/gallon and the other advertising $2.99/gallon.  The gas station with the less expensive gas was getting all of the business and it was easy to understand why. 

It is the same way with the real estate market; nobody is going to pay $400,000 for a house when there is a bank foreclosure that is almost identical down the street priced at $349,000. 

Sure, the bank foreclosure might need new carpet and some fresh paint, but that is just a small expense in the long run.  Hopefully one day we will get back to the days where there are more “regular sellers” and not so many foreclosures.

We had 47 homes sell on Hilton Head during the month of June; compared to 124 home sales during the same time period in 2005 – which was the top of the market. 

We had 65 villa sales during the month of June on Hilton Head; compared to 204 villa sales during the same time period in 2005. 

We had 23 lot sales in Hilton Head and Bluffton in June compared to 102 sales in 2005.

I’ve been telling my clients, home sales are slow, villa sales are slower, and lot sales are slowest. 

I do feel good about the fact that we had more villas and lots sell during this time period than in 2009 during the month of June. 

Prices continue to drop – bad news for sellers and good news for buyers.

I was talking to a client of mine and they said they did not know who to believe; one day the newspaper says that things are getting better and the next day the same paper says that things are getting worse. 

I think it is important to remember that all real estate is local and you should not look at national studies to determine where your local market is. 

I can pretty much guarantee that Hilton Head Island was not included in this 20 city report. 

The real estate market on Hilton Head Island, as in most resort areas, has been slow as inventory increases and sales decrease causing a lowering of prices. 

Just remember, do not look at the national trend – look at the local trend.

A couple days later the owners of the property sent a letter to their Realtor saying why they thought their house was worth approximately 15% more than what the research showed.

I read the letter and it was very well written, but they needed to understand that they don’t determine the price of their home.  In a real estate market like today’s, it is important to realize that it is the buyer who determines the sales price.  In a seller’s market, the seller often determines the sales price. 

In a good real estate market the seller determines the price because there are a lot more buyers than sellers in the market.  This makes sense when you think about it like that and it is true with any commodity.  It all goes back to Economics 101 – supply vs. demand.

My wife looked at me and said that there was no way I could know that this house was worth because I was not a Realtor in this area.  Real estate works the same in all areas – there is a pecking order for properties.  You don’t have a lot of buyers in Lexington, Virginia looking for a $1.5 million dollar property on 6.5 acres.

I once went on a listing appointment and the seller told me that they wanted $10 million for their oceanfront home.  I knew there was no way she could get that when her next door neighbor’s home was on the market for $5 million.  She said her house was slightly larger – which it was, and her home had 5 bedrooms rather than 4 bedrooms – which it did, and that the pool was larger – which it was.  These factors; however, did not mean that the house was worth twice as much. 

It sometimes amazes me the price someone will put on a property.

When someone is trying to determine the value of their home, I think it is important to look at the competition.  I often tell people that the price of their house is not determined by me, but that it is determined by the market and the buyers in the market.