My New Blog

    As a REALTOR, many friends ask me how the real estate market is doing.  I answer, if you are shopping for a home and don't have anything to sell then you can get a deal.  The bottom is here in Lexington SC and buyers are taking advantage.  In Prescott Glen,  there are currently 13 homes on the market with an average days on the market ( DOM ) of 115 days.  Not bad but the range is from 6 to 406 days.  So some have sat there for more than a year.  The well priced home should sell between 4 to 5 months or sooner in this market.  Three homes closed in the last month which is good but at a great discount, a $15,000 to $29,000 reduction from the original list price. Ouch. The avg listed $/sqft $89 and the avg SOLD $/sqft $84.  That is 5.6% discounted from the list price.  During a normal market, 2-3% off the list price was acceptable.   I don't know specifics of  any these closings but from experience, in addition to these major price reductions, the sellers had to change carpet, repaint the entire home, or other concessions. 

Take Away - Real estate is GREAT if you are a buyer but challenging for a seller.  If you need to sell your home during this time,  you need to set up realistic expectations for yourself on the final sales price and the length of time it will take to sell  your home. Your ally right now is time.  This is a great time to build up the features of your home with small upgrades that you can appreciate before you sell.  Use this time to clean out the garage, repaint some rooms, etc.  You get the idea. The real estate market is dynamic and unique in every area and neighborhood so consult a local REALTOR® when you plan on selling your home to get the full picture. 

Like any other guy, I love gadgets and electronics. On Sunday mornings, I look forward to the Sunday paper not for the cartoons but for the Best Buy and Circuit City Ads. Looking for the deals. Unfortunately, I get mad when I see how much flat panels have gotten so much better and cost less than when I bought mine last year. With technology advancing at a fast rate, the consuming public can’t keep up with all the new stuff out there. Prices of Flat Panels are going down every month, no sense getting attached to them. Especially when you mounted it and ran wires behind the wall. Taking them out will be a bigger chore and patching up the wall is another project on your list.

With the current homebuyers market, buyers are getting SUPER DEALS on homes. After slashing the sales price, buyers are ending with extras like stainless steel kitchen appliances, front load washer and dryers, 52” TVS, and more. Basically, buyers are getting another $5,000 to $10,000 in incentives. NOW that is a buyers market!

TIP: Sellers, if you can’t lower the price anymore look around the house that you can include with it. Discuss negotiation tactics with your listing agent to get the contract. The cool part is when you sell the house and the old TV; you get the newer model to console you later.

Buyers, you are upgrading on the house might as well check out what appliances or window treatments can stay. (Curtains are not as exciting as a flat panel TV but the neighbors don’t want to see you in your boxers watching TV either.) Only ask for items that are replaceable and with no personal sentiment. Don’t ask for the family dog or a gun case unless you want to be test driving the inside of the freezer you also asked for.

                                               

	Jan. 19, 2009	LY 2008
Current Inventory	947	1,068
New Listings	101	149
Avg List Price	$ 231,675	$235,489
Pending Contracts	44	59
Closed Sales	24	55
Closed Avg Sales Price	$ 203,265	$199,461
% Sales Price/List Price	87.74%	84.70%
Avg Days on the Market (DOM)	102	127
Withdrawn	48	46
Expired	24	27

Source: Consolidated MLS Report

The avg. days on the market sold were 102 days for the lower $200,000 price range which was higher than 2008. Number of closings in Lexington SC was halved from 2008.  A 12% discount from list to closing sales price is a very big drop compared to the Irmo market which had nearly 0% discount. Home sellers in Lexington are trying to keep up those home values but shows it is a struggle. 

With the new President coming in, hopefully comes in some new inspiration and security to buy homes again. Sellers intending to sell their home should start interviewing their REALTORS now. Activity on REALTOR.com has spiked up since Christmas and shows a lot of homebuyers on the sidelines waiting to jump in and are window shopping online. If your home is not marketed well on REALTOR.com, then you are losing some potential buyers. REALTOR.com has 6 million visitors each month; it is the main online destination to search for homes. 77% of future home buyers’ shop online before speaking to a REALTOR. What attracts them to my listings? Virtual tours, lots of pictures, and good descriptions. Make sure your home is marketed well and on the right websites. ALL REALTORS market their listings differently so ask before signing that listing agreement. It is a new year with new opportunities. Don’t lose time and money with bad or no marketing.

Like everyone in Prescott Glen, I received my notice for the HOA Dues increase for 2009. As a past president of the HOA, I understand the difficult decision the board had to make. During these tough economic times, nobody wants to pay more than they have to. So I compiled the list of neighborhood dues for homes in the Lexington area. The neighborhoods do have pools but some maybe smaller and without clubhouses. Keep that in mind since the major expense for our budget is the pool and clubhouse ($30k, which is 25% of the HOA budget). Some of these neighborhoods are still being developed and the builder/developer may be subsidizing for the empty lots. My family enjoys the pool and the neighborhood amenities so keeping it safe and maintained is worth doing. Like anything older, they wear down and need to get maintained and repaired.

HOA Dues Per Year

Farming Creek    $300

Governors Grant  $320

Heritage Farm     $400 * DR Horton Neighborhood

Hope Springs      $475

Martins Grove     $340

Olde Saluda        $585

Persimmon Grove $250 *Still being built/ maybe subsidized by builder

Richmond Farms   $312

South Brook        $600

Summer Lake       $600

The Mill               $470 *clubhouse w/ fitness room, still being developed

Tri Spring            $300

Wellesley            $235

Willowbrooke       $360