Ask Mr. Ed is a Savannah Area Real Estate blog published by Ed Yannett of Keller Williams Realty, www.myhomesavannah.com.
Savannah home sales increased 6.8% from the first quarter of 2013 to the first quarter of 2014. A total of 1,091 homes sold. However, the best way to approach the data is to find out how many houses sold in your price range. So let’s look at some figures and see how the market is developing in different price ranges.
Most Houses in $100k to $500k range
If you look at the first chart, you see that most of the houses that sold — over 72% — were priced over $100,000 and under $500,000. If the house you plan to sell or buy falls in that range the number of houses sold was up 8.6% — even higher than the overall market. (Click on chart to enlarge.)
If you’re a seller, you have a better chance of selling your house quickly if you fall in that range, while if you’re a buyer you may have less negotiating power as buyers know the market is turning in their favor. Also, if the home you buy or sell is over $500,000, you may need to take a specialized approach to buying or selling your property.
Why Your Strategy Depends on Your Price Range
If you look at chart 2, you see the $100k to $199k market is the closest to balance (supply of over 6 to 7 months) and the $200k to $299k is next. Basically, these price ranges are shifting from a buyer’s to a seller’s market. So if you’re a buyer, you need to act faster to maximize your negotiating advantage and secure the best pricing. If you’re a seller, you should be encouraged as the odds of getting a peak price is improving each month.
Higher-Priced Homes Harder to Sell
As the price of the home increases, selling it becomes harder. It can take much longer — sometimes years. There are two key reasons for that. The first is straightforward: There are not as many buyers at higher price ranges. The second reason, not as obvious, is that more affluent buyers usually approach the home buying process a little differently. As you see on the chart above, buyers have the upper hand when it comes to listing prices above $500,000. Sellers of luxury homes also have to approach the process differently. The main thing to keep in mind is you need a real estate professional who has specialized training and understanding of how to market Savannah area homes to more affluent buyers.
When you review housing numbers, pay close attention to the figures and percentages for your price range. These numbers are more useful to you than the overall market trends. In other words, it helps to know if the Savannah homes in your price range are in a buyer’s, seller’s or balanced market. This allows you to price and negotiate more effectively. It also enables you to pinpoint the best time to buy or sell.
(Note from Ed: I’m launching a new website and blog focused on the Savannah area luxury home market. Stay tuned for details.)
Ed Yannett has been involved in some facet of the real estate industry for over 20 years. He rehabbed and sold his first house in Denver. After moving to Savannah, he renovated and sold dozens of properties throughout the Savannah area. He also owned and managed two large apartment complexes with 240 units.
After graduating from Metropolitan State University of Denver where he studied Economics, Finance and Real Estate, he worked as an executive recruiter. Ed launched his full-time real estate career in 2000 after moving to Savannah, his wife Lisa’s hometown. After renovating and selling his first property in the Savannah Historic District, he and Lisa purchased a house on Isle of Hope to raise a family.
Why Work with Ed?
Ed offers you something most realtors can’t. He has firsthand knowledge of all sides of a real estate deal – buying, selling, renovating, investing and financing. So whether you’re looking for the perfect home for yourself or your family, want to sell your property quickly, or are interested in generating investment income, he can provide you the expertise you need. Contact Ed at firstname.lastname@example.org.