Spring Charlotte Real Estate Market Update: How Is 2018 Stacking Up?
In my January update I touched on the forecast for the 2018 Market. As we head into the spring market, here is what we are seeing.
Multiple offers – No changes here. We have been seeing this for a few years now. Sellers that are priced right are receiving multiple offers and getting over asking price within hours of being on the market. In these scenarios, sellers are holding all the cards – getting all the terms they want. Buyers need to discuss the contingencies they are willing to waive ahead of time when they find themselves in this situation. It’s good to be on the selling side in this scenario, and tough to be on buying side. We have had recent buyer clients offering $25k over asking and still loosing out…not on one, two, or three houses, but four houses before we found one off-market for them.
Off-Market Sales – I have a listing coming up. We have a buyer who wants to be in that neighborhood and the home criteria fits. We make the deal happen. It’s a win-win. Seller doesn’t have to go through all the showings and keeping the house in perfect condition. Seller is also, for the most part, dictating terms and what works for them. Buyer doesn’t have to get into a bidding war. We are probably doing 3-4 deals a year like this right now.
Rent-backs – We have negotiated more rent-backs (agreements between the buyer and the seller dictating how long the seller can stay in the home post-closing) in the last six months to a year than any other time in my career. Why? Because many sellers cannot buy until the sell and when their house is priced right and sold within days it’s a term buyers are willing to give to sellers to “win” the home. I have done rent-backs for 2 weeks, up to 2 months.
Presentation of Home – As a seller, if you aren’t “staged” correctly the home will sit on the market. Earlier in the year I had two listings that had carried over from the fall market. Both clients were able to buy a new home and move out before selling. Once they were moved into the new home we took the old home off the market for about a week. Both homes had painting & staging, and then we re-listed. Both homes sold in days after having sat on the market for months. It’s not always just price.
Priced too High – When the home doesn’t need new paint or staging and shows beautifully but just isn’t selling, then you are priced to high. In this market, if you don’t have multiple showings in the first few days, then you are very overpriced. If you’re having showings, but no offers within 30 days, you need to lower your price. Average days on market (DOM) in the Charlotte region is about 35 days for homes $450,000 and up.
The market is strong—stronger than last year or the year before. The buyers are becoming used to these elevated prices and seller-driven conditions. Buyers are no longer afraid to wait if a home is priced high. They aren’t afraid to wait if its dated with paint colors, cabinetry, flooring, etc. They also aren’t afraid to throw all the cards on the table when it’s just right.