Why a hot market is the time to move up a level.

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The real estate market is hot in Greenville, SC and in many cities across the country. Inventory is low and in the lower price ranges the competition is tough. We don’t have enough homes for the amount of buyers that are looking to buy a home. Now Realtors are talking to people who are thinking about selling their home and hearing this: “I’m afraid if I sell my home that I won’t be able to find something else to buy”. So who is primed to take advantage of this hot market? If you are looking to “move up a level” in the real estate world, this could be the perfect time.  So let’s take a quick look at the levels in Greenville and see which category you fall into.

These are not exact ranges. They are not predicated on scientific numbers. They are what I am seeing from my buyers and sellers, they are a very simplistic way of breaking down the different markets, and are meant to give you an idea of where you are and where you can “move up” to. Obviously, some areas around Greenville, such as the North Main area and Augusta Rd, are always going to be outliers and are a market unto themselves. The average home price around Greenville, SC in February of 2016 was just below $195,000. What many would consider entry-level homes would fall in a price range of $0 – $150,000. The inventory on this level is low. Buyers are having a tough time finding a home and if a seller prepares to list their home properly, with the right price, homes are selling quickly. The price range for level number 2 will be $150,000 – $225,000. The market for this range is very similar to level 1. Level 3 would be $225,000 – $300,000. This is where the market begins to shift. A home listed in the lower half of the range is moving very quickly and things begin to slow as you near the upper end of this price range. Level 4 would be $300,000 – $400,000. Houses on this level are selling but we are starting to get into a price range where we are pricing out the average buyers in our area. When there is less demand, a home may stay on the market longer before it sells. They are still selling faster than a few years ago and even last year but we are not seeing as many house immediately go under contract the same way we are in the first few levels. A seller in this price range needs to be sure they are doing everything correctly in the pre-listing phase to present their home on a level that the buyers are expecting. For the sake of brevity and to stick with the main theme, I will put level 5 as being $400,000 and up. This is where we start to see even longer days on market because of lack of demand. There simply aren’t as many buyers in this price range. Homes are still selling but not often in the first few weeks on the market. If a seller does not properly prepare in the pre-listing phase, they run the risk of the home staying on the market too long and becoming stale as prospective buyers begin to wonder what is wrong with it since it hasn’t sold yet in a hot market.

So what does all this mean? There are opportunities in moving from almost every level to the next. Moving from level 1 to level 2 can still be a little tricky. When using the right Realtor, you will get the most money for your home but inventory is still low in level 2 and you must have a great Realtor to help you find the right home, prepare you before hand for making the right offer, and know how to win in a multiple offer situation. Moving from level 2 to level 3 can be a little easier. This is where I see a great opportunity right now. You will be getting top dollar for your home and, especially if you are moving to the higher end of level 3, you will have more choices with a little less competition. Moving from level 3 to level 4 is also a good opportunity right now. Houses are still moving on level 3 and are going for a good price. On level 4, houses tend to stay on the market a little longer and you won’t necessarily have to move as fast as the lower levels. Multiple offer situations are fewer in this price range and gives you more leverage in negotiations.

So who’s ready to move up a level!

 

Brad Buczkowski

Email: bradbucz@gmail.com

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