Sales Price

But I have a unique home…

By James Wedgeworth on July 11th, 2011

I recently went on a listing appointment on Hilton Head.  While I was going over what was going on in the market I was stopped mid sentence.  The owner said that these market conditions didn’t apply to them because they had a unique home – despite the fact that most homes prices have fallen a significant amount since 2005.

This particular owner said that his home was worth what he paid for the home in 2005 because it had such a good floor plan and view.  I once even had an oceanfront homeowner tell me his house was worth what he paid four years prior because he had a nice swimming pool. 

It’s important to remember – the rising tide lifts all boats – the same applies in reverse.

Good Markets vs. Bad Markets

By James Wedgeworth on February 22nd, 2011

I was recently on a listing appointment with some clients who were interested in selling their home.  We went over a market analysis of their home and came to a conclusion on price. 

They said that they understood my assessment; but that they needed to get more out of their property so they were going to try and sell it on their own and put an ad in the newspaper.

Unfortunately, in a slow market this might not be the best solution.  Often people look at many properties and they sometimes take longer to make up their minds.  Just remember to evaluate what type of market you are in .

Percent of List Price

By James Wedgeworth on December 11th, 2010

It amazes me that people automatically assume when a bank lists a piece of property as a foreclosure that they are going to take a significantly lower offer on the property.  For example, I have a beautiful villa listed at $299,000 and I recently received an offer from another agent for $150,000.  Everyone knows that this villa is worth significantly more than $150,000; in fact, it is probably worth more than $299,000.  At one point in time this villa was worth around $600,000. 

An agent I work with did a study of foreclosures looking at list price vs. sales price.  He found that these properties sold for 98.8% of list price.

One of the reasons that this percentage is so high is because several properties sold for over list price.  For example, I had an oceanfront home listed for sale in Palmetto Dunes.  Within one day of listing this property I had 9 offers which drove the price up. 

So you think you can offer a low price on a foreclosure; it’s a nice thought, but in the real world it doesn’t always work.


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