Looking back over the past 12 months we saw about a 10% appreciation across the board in real estate pricing.  Banks started loosening up their lending restrictions and there has even been a trend of buyers diversifying into homes from their stock portfolios.  Christmas party chatter this year will reinforce buying real estate.  With all this good cheer, what does not make sense is why a buyer today would make an offer lower than the average list to sell price when the property is priced correctly?

Do you want to buy this property – Hilton Head Island

An offer 10-20% lower than asking price just doesn’t get the same reaction it did the last few years on Hilton Head.  The reason is that prices were still declining up until this year.  Today real estate prices have stabilized and depending on the area some have actually increased.  Savvy agents need to educate their buyers on these market trends.  With the average selling price at 3-5% for properties up to 1 million there is really no reason to mess around with a lowball offer on a properly priced property.

Factors that effect price – Hilton Head Island

Condition, location and price certainly factor into price in a big way. Other factors that currentlyeffect price include growing consumer confidence, an accelerating global economy, healthy stock market returns, low interest rates and a great job report all of which we have in the market place today.  If you were to put a big X where you think we are today on the chart to the right, most buyers and agents would put it closer to getting better.  This is why buyers need to make a realistic offer when they are bidding on real estate today.  It’s getting better.

A limited Commodity – Hilton Head Island

Hilton Head Island is 97% developed and offers a finite number of properties that will ever be available.  It is a limited commodity and buyers that are serious about owning great real estate on Hilton Head need to factor this in when they are making offers in this changing market.  By starting too low,  buyers run the risk of participating in multiple offers, missed opportunities and a day late-missed opportunity.  Ask your agent to explain the market trend report when you are getting ready to make an offer.  It may be the difference in winning the property and no one likes to lose!  Another suggestion is to pick two properties because one of them may be gone by the time you decide.  Good Luck and Happy Buying!