I've been getting a lot of questions from clients about the following trends they see when searching around for listings:
1) Many listings have been on the market for over 3 months.
2) A seemingly high number of price decreases.
3) Some listings sell within 24 hours and get multiple offers.
How can all of these trends be happening at once? Follow the motivation.
In a primary real estate market, buyers and sellers looking to make a change often have urgent goals driven by life changes (jobs, schools, etc). Here on Hilton Head, buyers and sellers often have more discretion and are ok waiting for the right opportunity.
For sellers, getting their "make me move" price is often the only goal. If they don't get it for weeks, or even months, that's ok. They will either keep coming down to enjoy their property or, better yet, keep getting rental income as they wait. While some sellers will slowly reduce their unrealistic prices (which is often why you see so many price decreases), others will stay put.
In Palmetto Dunes, I recently worked on a potential deal where we were close to negotiating a final price for a house that was very old and likely a teardown. Surprisingly, the sellers simply lost interest in any potential deal midway through the process and said they hate the thought of no longer sipping coffee on the back porch. As a result, they stuck to their higher number that was far beyond what the comps would support, and the buyer had to look elsewhere. While that is often a frustrating experience, it helped us prepare and get a great deal on the next listing that popped up soon after.
For buyers, making a move to Hilton Head is a big decision. Getting a "forever home" can be a daunting challenge. As a result, if the floor plan is too tight, the ceiling heights are too low, the cart path is too close to the house, or that gator in the lagoon has a funny look in its eyes, the buyers will say, "Let's look for the next one."
While many buyers can get annoyed at not finding the "just right" property, going through this process is the only way for the buyers to truly understand what they want. When the perfect house at an ideal price hits the market and has a lot of interest, buyers who have been looking for a while are often better positioned to get the deal done. They know not only their own desires but also what constitutes a good deal in the market. There was a renovated condo listed in Sea Pines recently with an amazing view of the Calibogue Sound, and it attracted multiple offers quickly. The buyers who won the bid had been looking for a while, had owned in the area before, and knew exactly how much they were willing to pay for it after researching the market for a few months.
If all of this sounds like a lot to navigate, we are happy to help. Let us know if you have any questions as you search for your next property on the island.