Are Charleston home sellers getting more realistic
I'm beginning to notice that stubborn Charleston home sellers are getting more realistic in pricing their homes for sale and negotiating the precious few offers that they might receive.
I almost jumped out of my desk chair yesterday when I noticed a new listing that was priced so sharply that I wanted to immediately put my home on the market and buy it. Of course, I would have to price mine just as well in order to get a buyer for my home.
As I've said to a number of people who are considering selling their homes in today's Charleston real estate market, sell cheap, buy cheaper.
Sellers are being more receptive to negotiating offers too. Pretty much gone is the day when an offer for much less than asking price is being dismissed as insulting. Now I'm not talking about ridiculous lowball offers for 50 cents and less on the dollar but good offers for 10% or more off list price. Proof of that can be found in statistics provided by the Charleston MLS that shows homes on average are now selling for 93.5% of asking price this year vs. 95.5% of asking price at the same time last year. There is a lot of competition for fewer buyers and sellers are finally "getting it".
Even the banks are getting in on the realistic pricing bandwagon. Foreclosures are being marked down if the home doesn't move quickly. And in a very positive sign, I'm starting to notice that short sales are actually closing quicker and more often. I guess the banks have figured out it's better to lose 20% in a short sale than 40% in a foreclosure.
And even more good news on the short sale front. One of the biggest problems in handling a short sale is that the real estate commission being offered and what was actually paid were different. And different in a bad way meaning less. And less commission for more work isn't actually very good. Unfortunately, negotiating commissions are not part of any real estate sales contract but the banks haven't seen it that way and generally tried reduce the promised commission.
Fannie Mae is now protecting commissions on short sales on loans it owns or guarantees and let's hope that others follow their lead.
Fannie Mae has instructed its servicers to not negotiate commissions on short sales below the amount negotiated by the listing agent (unless the commission exceeds 6 percent). The requirement took effect March 1, 2009. Fannie Mae recognizes that (a) negotiating commissions for short sales is unfair because getting a short sale to closing requires intensive work over many months, often requiring working with numerous buyers, and (b) compensating real estate agents fairly benefits Fannie Mae because agents play a crucial role in short sales. (emphasis added)
Don't forget to spring forward tonight and set your clocks ahead by an hour before going to sleep. And what a wonderful spring weekend we'll be enjoying with temperatures expected in the high 70's under glorious Carolina blue skies.