2012 Tellico Home Sales Rebound 60%
Wednesday, January 2nd, 2013 | Uncategorized | No Comments
Last year I wrote an article on Tellico Village housing market activity which seemed to be well received, and I thought I’d do an update on the 2012 market results. Home sales (121) were up more than 60% (results through 12-19-12) from 2011 (75) and up over every year back to 2007, when we had 144 home sales. So the housing sales market had a major rebound when compared to previous years even though home pricing stayed flat. (Price change in the $400k and less home sales was less than $1 per ft year over year.) Low interest rates, buyers being able to sell their previous homes, and a desire to move forward and relocate here were the primary drivers.
In 2011, 50% of the home sales occurred at $275k and below and again this year (62 sales). Seventy-five percent of the home sales (93) occurred at $400k and below, which is an improvement from last year’s $350k, but many were due to reductions in higher priced homes. While there was only one sale this year at $950k and above versus three last year, there were 12 sales in the $700k-949k range, a major change from the zero of last year. Again, many of these were homes that were reduced. There were 15 sales between $400k-699k, eight of which were waterfront homes with docks. Tellico Village doesn’t have many foreclosures, but it does have estate and illness sales where owners are willing, in many cases, to drop their prices sharply to sell. Kahite data isn’t included in the above numbers, but they sold nine homes this year versus four last year, a major improvement!
Each summer we have more than 200 homes on the market, so it is still definitely a buyer’s market. There are usually at least 20-25 homes competing against each other in any price range. The average sale price off the final (not original) listing price is about 7%. Avoid the temptation of overpricing because of a bad offer. You can always work a bad offer versus overpricing it and receiving no offer. Some people want to price their homes high and then adjust. Missing time during the prime selling season before doing a price reduction may cost you a home sale. (Seventy-five percent of home sales occur between March and the middle of October.) Overpriced homes tend to make it easier to sell a correctly priced home, because buyers are using the overpriced one as a comparison.
If you bought a home at the top of the market or haven’t updated your home in many years, it may be difficult to get your invested money back. Many people netted less for their homes than they paid for them after closing. Also, homes have to appraise for a loan. Often people get confused between appraised value and assessed value. The county assessed value is often derived on land/home values from several years ago, when the market was high. The assessor generally drives by the home rather than go in it. Therefore, it can in many cases not reflect the true value of the home in today’s market. An appraisal for a loan is different. The appraiser not only goes in the home, but then compares it to current home sales in the area. The loan appraisal tends to be more accurate.
A few points worth reinforcing can be determined from the above information. Even though home sales are up strongly, home prices will continue to be under pressure. Well-priced homes under $300k should sell, but homes selling above $950k will find it tough to locate buyers for the immediate future. The well attended recent POA Board meeting that laid out a strong advertising plan should help bring more buyers, but it will take time.
A magazine article ranked curb appeal second, presentation inside the home third, but the single most important item was price. Too often sellers drop their prices too late. Most people coming to the Village took a loss or severe haircut on their former home and are looking for a “deal.” They have researched the market and tend to be very knowledgeable and look at buying a home as a business decision based on how the home may sell in the future and what costs are required to update the home. Also, most buyers aren’t willing to take on a lot of home projects, so fix some of the areas you have control over like wallpaper or a fresh coat of neutral paint.
When you get ready to sell your home or just want information, check out the website (no www.) public.kaarmls.com or visit www.villagerealtytn.com. If you want more information on the Tellico Village/Kahite housing market or have questions, feel free to contact me.
Alden Williams
Village Realty
(865) 604-3251
afjtn944@aol.com
