The Charleston Coast From Our View...
“The booming U.S. housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales prices and an inadequate supply of available housing have forced many prospective buyers to rent for the foreseeable future. Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4% in 2021 so far, according to Apartment List. In new construction, home builders continue to struggle to meet buyer demand, as housing starts nationwide dropped 7% last month, according to the Commerce Department. Single-family home construction declined 4.5%, and multi-family home construction, which includes condos and apartment buildings, was also down, falling by 13%. Labor shortages, rising material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.” ~ Charleston Trident Association of REALTORS® (CTAR)
Market Statistics by Area:
Closed Sales +1.5% | Median Sales Price +13.6% | Months Supply -56.5%
247 Saltgrass Court, Kiawah Island
4 beds, 4.5 baths, 3300 sq ft | Offered for $2,200,000
Spectacular views of the Kiawah River abound from this architectural beauty featuring floor-to-ceiling windows in the open living area, and a multi-tiered deck for entertaining spanning the exterior. Situated on a quiet cul-de-sac, this 4 bedroom, 4.5 bath home is conveniently located with easy access to the beach and all other on-island and off-island activities. Other notable features include a wood burning fireplace and high ceilings in the living room, beautiful hardwood flooring throughout, Sonos sound system both inside and outdoors, a “river pebble” finished concrete driveway, professional landscape lighting, central vacuum system and more. For more information on this one of a kind home, visit bit.ly/247SaltgrassCt.
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Charleston Coast Vacations
You may have heard that the Charleston Real Estate Market has very low inventory and many sellers are receiving multiple offers. It’s true. I have ready and willing buyers and yet I have no homes to show them that meet their criteria. Homes that do come on the market are moving rapidly, many with multiple offers. One of my colleagues wrote nine different contracts for her buyers on various properties, all over asking price, and none were accepted. For my sellers, I am recommending that there are several ways to deal with multiple offers that have benefits beyond simply taking the highest monetary offer.
1.The most widely used method when a seller receives multiple offers is to ask for each buyer’s Highest and Best Offer. This allows buyers to reconsider their offer and increase if they are able and seriously interested. The risk a seller takes is that some buyers will not want to engage in a bidding “war” and high offers may be allowed to expire. I always remind my sellers that contracts are more than just the offered price. The other terms may not be as desirable such as closing date, required financing, and other contingencies.
2. The next likely choice is to pick the best offer, weighing all factors, and move forward. Sellers may not realize as much profit potential, but it is a simpler and quicker resolution. Buying and selling is inherently about risk tolerance and the risk/reward may not be worth the chance of losing an enthusiastic buyer.
3. Sellers also have the option of handling the offers in the order they are received making counter offers (or not) accordingly. In a low inventory market such as we are experiencing in 2021, this has considerably less risk that the buyers will find another property and walk away; however, an offer to purchase does come with a deadline for response, so timing can be an issue.
4. Another response sellers can employ is to create a universal counter offer and send it to all buyers. This can minimize the downside options throughout the contract for the seller. This method requires top notch communication on the part of the seller’s agent in order to insure a fair process for all. Deadlines, dates and times are extremely important to managing this process successfully.
On a side note, from a buyer’s perspective, escalation clauses have recently received a lot of notice with the current market conditions. This involves writing an offer with incremental dollar increases on a schedule to outbid other buyers without necessarily offering their highest and best offer. For example, a buyer might indicate that he/she will automatically pay $1000 over the next highest competitive offer without having to renegotiate. My advice to sellers and buyers is to avoid this option at this time. The difference for buyers over the life of the mortgage is minimal and for sellers, the chance of getting what the market may demand is diminished.
5. If you are a seller and find yourself in a multiple offer situation, you can also reject all offers and raise the price. The obvious risk of driving buyers away is high and greedy homeowners may cut off their noses to spite their faces in this scenario.
There may be other solutions to the enviable problem of multiple offers. If you have an idea, please share.
“The White House recently announced additional measures to help struggling homeowners avoid foreclosure as they exit forbearance, including loan modifications and payment reductions. Borrowers with federally backed mortgages can lock in lower interest rates and extend the length of their mortgages. For borrowers who can’t resume their monthly mortgage, HUD will offer lenders the ability to provide all eligible borrowers with a 25% principal and interest reduction. The National Association of REALTORS® reported inventory of homes for sale nationwide rose slightly in June as more sellers list their homes, hoping to take advantage of record-high sales prices across the country. Even with renewed home seller interest, inventory overall remains 18.8% lower than a year ago, according to the NAR.”
~ Charleston Trident Association of REALTORS® (CTAR)
Market Statistics by Area:
Closed Sales +13.3% | Median Sales Price +14.8% | Months Supply -63.0%
708 E Erie Avenue, Folly Beach
3 beds, 2.5 baths, 1390 sq ft | Offered for $1,325,000
Take in breathtaking sunset views of the Folly River from this updated and well-maintained Folly Beach home. The living area with giant vaulted ceilings and kitchen are on the first floor along with the master bedroom and spacious master bath. Off the living area is a screened porch where you can relax and soak in the beautiful sights or entertain a larger crowd on the adjoining deck. Upstairs are two bedrooms split by a full bathroom. With a long list of updates already made, it’s worry-free and ready for you to move right in! For more info, visit: www.708EastErie.com.
“Some buyers are looking to get away from the hustle and bustle of living in a growing city. Others have been interested in affordability, lifestyle, desire for land, and water access.“ (Slowikowski, Post & Courier)
Congratulations to Kain Slowikowski, featured in the Post & Courier‘s article Rural rise: Buyers move to the country for a low-key lifestyle. CLICK HERE to read the full article!
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