Category Archives: Uncategorized
1-Losing the property
3-Paying too much
If you are the buyer and you see a property that seems to fit everything you’re looking for, your first thought may be, “I hope I can get this property before someone else does.” This is usually followed by the thought that maybe you have not seen everything on the market, and you could potentially miss something that could be even better. Your next thought may be am I paying too much for this property?
The best way to get clear about these questions is to go through a buyer interview. Your agent will explain to you how to select properties to see. There will be a series of questions that will have a funnel affect for all the homes for sale. With each criteria you state that is important to you, homes will be eliminated. For example; if a certain school district is important to you, all homes outside that district will be eliminated.
Your agent will give you peace of mind about the price you pay for the property by showing you all the homes that have sold in that area over the past twelve months.
Once you can see that you started with the total market and eliminated properties based on your needs and price range, and that your agent will show you the sold properties in the area you like, peace of mind should follow.
When it is clear to you that you have not missed anything, and you’re not paying too much, the next step will be a move to the home that best meets the needs of your family.
Aldridge & Southerland agents are trained to ask you questions that will help you see the process clearly.
When you put your home on the market for sale, your realtor may discuss absorption rates with you. Here is a simple explanation of the absorption rate.
Currently in The Greenville Pitt County real estate market there are 101 properties for sale in the $160,000 – $180,000 price range. In the past 12 months in this price range 133 homes have sold. This tells us that there are 101 for sale, and 11 sales a month (133/12=11)
What does this absorption rate information tell you as a seller in this market? Let’s assume you have a home on the market priced at $175,000. In this price range you are competing with 101 properties, with 11 of these selling each month, and of course, with other homes constantly coming on the market.
What will you need to do to win? Be in the top 11 out of 101 in terms of price, location, and condition. How do you achieve this? Ask your realtor to show you the homes on the market you are competing with. Agents in our office would sit down with you in a conference area and show you exterior and interior pictures of the competing homes on a flat screen TV. You just need to be open to seeing your home as a commodity that competes with other homes instead of a home with family memories. Take it from me, that is not always the easiest thing to do.
The average interest rate for a home mortgage over the past 30 years is 8.44%. The rate today is 3.6%. How do these compare? Let’s look at the monthly payment for $200,000 today at 3.6%. The principle and interest payment for a 30 year loan is $909.29 monthly. With the average rate over the past 30 years, 8.44% a home buyer making a payment of $909.29 could only borrow $118,900. The low rates have given home buyers today so much more in terms of buying power.
Greenville NC Pitt County MLS sales for the past three years, 2009, 2010 and 2011, reveal a trend. The highest percentage of homes closed in the 2nd quarter of the year. (April, May, June) For these homes to close during this time, the contract was written 30-45 days before the closing. This reveals that the majority of contracts to purchase are written in the Greenville NC Pitt County MLS during the months of March, April, and May.
Average percentage of closed sales by quarter for the past three years reveals the following.
% Closed sales by quarter – Greenville NC Pitt County MLS
1st – 18.6% – Jan, Feb, March
2nd – 32% – April, May, June
3rd – 26% – July, Aug, September
4th – 23% – Oct, Nov, Dec
For a home seller, this would mean the best chance of selling your home for the highest price would be to put it on the market in February or March of the year.
For a buyer, the best time to get a better price would be to purchase November – January.