What You Don’t Know Can Hurt You!
Thursday, February 2nd, 2012 | Uncategorized | No Comments
By Alden Williams
Anyone contemplating buying or selling their home should gather as much information as possible. Some people say the market is improving; others say that prices are going up or that our market isn’t bad compared to other areas of this country.
Leading Village Realty in sales for the last four years, I’ve brought buyers to 60% of my listings last year, so I thought it would be helpful to provide some useful data that helps me to assist my clients.
So how is our market? In 2009, according to the MLS sales (not counting condos or townhomes), there were 83 home sales in Tellico Village. In 2010, there were 99. And in 2011, home sales started ahead of 2010, but slowed and only 75 homes were sold, a 24% decline. (Kahite, which had four home sales in 2011, isn’t included in the data.)
Each summer there are approximately 200 homes on the market. Currently there are over 150. So it is definitely a buyer’s market. There are usually at least 20 homes competing against each other in any price range, and the average sale price is 9% lower than the current listing price.
Sellers should avoid the temptation to overprice. You can always renegotiate a low offer, but you can’t renegotiate with a potential buyer who may be scared off by an unrealistic selling price. Keep in mind too that your home has to appraise as well.
Last year 50% of the home sales occurred at $275,000 and below. 75% of the home sales occurred at $350,000 and below. Also, there were 10 waterfront homes that went for under $700,000 and three sold from $950,000 to $1.2 million. NO homes sold between $700,000 to $950,000, but one is now pending. Tellico Village has few foreclosures, but does have estate and illness sales where owners are willing, in many cases, to drop their prices sharply to sell.
I believe a few things can be derived from the above information. Home prices will remain under pressure for the foreseeable future. Experts agree that curb appeal ranks second in importance, presentation inside the home third, but the single most important item was price. Many people tend to overprice their homes. Two-thirds of closings occur during the May through November timeframe, so most buyers are looking from late March through October. Too often sellers drop their prices too late, and many of the buyers coming to the Village took a loss on their home and are looking for an attractive price. They have researched the market and tend to be very knowledgeable. Also, most buyers aren’t willing to take on a lot of home projects, so I’d recommend repairing some of the areas you have control over like wallpaper or a fresh coat of neutral paint.
When you’re ready to sell your home or just want information, visit the website (no www.) public.kaarmls.com. Click on Loudon County and go to the bottom of the screen and then click “search.” On the next screen click on Tellico Village and then enter search criteria (pricing range, etc.) and it will show you every home on the market. It won’t give you days on the market or number of price reductions, but you will see photos and descriptions of homes in your price range. I also invite you to visit www.villagerealtytn.com and click on “links,” and then select advanced search or map or address search.
When you talk to a REALTOR® (hopefully me!) they can discuss what has sold in your price range and help you arrive at a price that will help sell your home in this challenging environment.
Alden Williams, Village Realty
(865) 604-3251
