Hello it’s Greg Harrelson here with Century 21 Harrelson Group down in Myrtle Beach South Carolina. Just wanted to send you a quick little video. Most of you are getting my monthly emails and usually I’m giving you some good information as to what’s going on down here in the Myrtle Beach real estate market as well as a few tips on whether you should do some things now or maybe wait and put your plans on hold.
I wanted to shoot a quick video and send it to you, from my perspective as a professional real estate agent in Myrtle Beach I can honestly tell you that the Myrtle Beach buyer activity is changing. And it’s changing in many different ways. So I wanted to discuss with you three questions that I’m consistently asked, especially in the last month. These are three questions that continue to come up as I’m talking to owners of real estate in Myrtle Beach. Or people who own from out of the area but who own a condo in Myrtle Beach.
Are there any real estate buyers in Myrtle Beach?
Right now the main question that I’m being asked is, “are they any buyers?” And let me just answer that real quickly. Yes. There are actually a lot of buyers in our market or there are a lot of buyer phone calls. People calling us and asking us what’s available and setting appointments to come down here in one week, two weeks or later even a month from now. So not only is there more buyers in town right this second and looking to scoop up property before the summer but there’s also an increased amount of buyer activity coming through the internet, coming through emails, coming off of website advertisements, etcetera. So there are a lot of buyers.
What kind of offers are these buyers making?
Number two. I have to say that I’m being asked …”ok there are a lot of buyers, but are they still making low ball offers?” There are a few buyers that are making low ball offers. That’s going to be the case though whether it was 2005 whether it was 1995, whether it’s 2012, and it’ll be the case in 2015. There are always going to be those people that make low ball offers. What I can comfortably tell you though now is or I can share with you at this point, is that there are not as many low ball offers as there used to be. In other words the people let’s call them sharks that were out there trying to get that best deal at practically the lowest price or steal the property let’s say. They’ve either acquired properties already or they have not been successful in acquiring properties and they’re becoming a little bit more realistic in what they’re proposing to the sellers. So yes there are still some low ball offers taking place but it’s an amount that we would say is normal in any particular market. So I don’t think that the market conditions are really inspiring people to continue making those low ball offers. The level of confidence that they have to buy a quality property at such as low ball offer. I think they’re losing confidence so now they are being a little bit more realistic or they are going away altogether which is perfectly fine to me.
Are they willing to negotiate?
The third question that I’m getting from owners like yourself is, “okay there’s buyers in town, they’re not making lowball offers but when they make an offer do the buyers say this is a take it or leave it offer or are the buyers willing to negotiate?” Now I have to say it depends. From the buyers standpoint we’re starting to see that buyers are a little bit more negotiable and a little bit more flexible when it comes to making a fair offer and then trying to negotiate with the seller based on what they feel might be the fair market value. Now the exceptions could be when a seller over prices the property and builds in a big cushion anticipating a very aggressive and lengthy negotiation.
So if a property was worth $200,000 and they put it on the MLS or listed that property fro say $230,000. That’s quite a bit of a cushion. So that buyer that’s coming in they may offer say $200,000 what the appraisal value is. But when it comes to how much they will negotiate they’re not going to negotiate that far up because the buyer is basically on a value they’re typically not basing offers anymore on list price. That’s critical so let me kind of say that once again. Offers by the buyers are based on real value; they are not usually making offers on based on a list price.
So as long as a list price is within the appropriate range then we’re seeing qualified buyers make good offers or fair offers. And we’re starting to see them negotiate up to what we can both get a seller and a buyer to both agree is fair market value. So all of these signs are really positive for the real estate market here in Myrtle Beach. We had to have buyers. At one point we didn’t have a lot of buyers. That’s no longer the situation.
We had to have fair offers, at one point we had all low ball offers and a lot of deals were never making it to the closing table because there was unreasonable expectations of the buyers or the investors. We haven’t eliminated that situation but that situation has declined dramatically.
And last but not least the buyers that are here seem a little bit fairer. Their expectations seem to be a little bit more reasonable. And they seem to be compromising in and engaging in some form of negotiation with our sellers.
So I thought that would be something positive I could share with you. Some information that may help you decide whether or not this is a good time to sell or whether or not you should just continue to hold it and see what happens. I cannot promise that these three things are going to continue to happen. I don’t know what going to happen the rest of the year but one thing I can assure you of that the people that are attempting to sell right now that are on the market. They are being successful. If there’s anything that I can do for you in the future. Remember its Greg Harrelson with Century 21 the Harrelson Group. Have a great day.