Most Hilton Head sellers would like to collect a premium on their property.  After all, it’s the best property because (insert reasons here). Sellers may shoot for a premium because of the larger square footage, higher quality, superior views, better furnishings, incredible rental income and nicer appliances.  The question is, just how long should a seller hold out for a premium?

Fair Market Value on Hilton Head

If a property is on the market for over 30 days and there are no showings, no second showings and no offers, it’s time to go to fair market value.  Sure sellers and agents can push for a higher price, but in a market with over  7 months of supply(see below), buyers won’t even show up to see an overpriced listing.  They don’t have to, more than likely there is one in the same neighborhood that is properly priced.

Urgency and Scarcity on Hilton Head

When urgency and scarcity occur in the Hilton Head real estate market, premium prices happen.  Scarcity exists when there are no other equally desirable alternative properties listed for sale in the same neighborhood or in similar communities.  Urgency happens in the first 45-60 days when a property is listed for sale.  When both urgency and scarcity are in place, a property sells quickly(see graph below).

Rules for setting a Trial Price on Hilton Head Property

If a seller does decide to push for a premium on their property, they should put a time frame for their trial price.  The coming months are busy in the Hilton Head Real Estate market and it is our hope that our sellers are getting lots of showings, second showings and offers that they can work with.  If not, give me a call and let’s update your fair market value before this selling season is over.  Thank you.