• English
  • Español
AGENTS: Did you know you can share a personalized version of this post? Learn more!

Why is Pricing a Home So Difficult?

We looked at the significance of a house as a home this past Friday. I hope everyone enjoyed the weekend and had the chance to personally feel the intrinsic value of a home. However, it would be unprofessional of us not to acknowledge that each house also has a market value, which is the price at which the property can currently sell. We are going to devote this week to look at how difficult it can be to set an accurate value in this rapidly evolving market.

There are many factors that must be considered to determine the value of local real estate. Here are just a few:

  • Demand for a particular type of house
  • Supply of a particular type of house
  • Interest rates
  • Employment rates
  • Foreclosures in the area
  • Consumer confidence

After we study each of the above individually, we must then realize that each factor has an impact on at least one of the other factors (ex: the employment rate will affect consumer confidence which then could impact demand). I have often used the analogy that today’s market is like a Rubik’s Cube. You put one group of factors together only to find out that it altered the relationship to another group.

Even the experts have a difficult time agreeing on prices in a singular community. As an example, I want to show you information available on the web sites of two well-respected financial resources: Forbes Magazine and Money Magazine. Both magazines did a report on future real estate values in major metropolitan areas across the country.

The Case of Charleston, South Carolina

Let’s take a look to see what Money Magazine and Forbes Magazine had to say about home prices in Charleston, South Carolina.

Money Magazine felt that Charleston values would increase by 7.8% over the next two years.

This is great news for sellers in Charleston! If they couldn’t get the price they were hoping for today, they would have to just wait for the market to come back.

And then there were the findings of the Forbes study, that prices were going to fall by 9% in Charleston over the next year. Now if a homeowner waited, they could lose a small fortune.

What does this mean to you?

What is someone considering to sell their home to do if Forbes and Money magazines came to such diverse conclusions?

It is crucially important for every buyer and seller to find a professional real estate agent who understands what is happening in their local market and why it is happening.

Demand that they sit with you and take the time to explain it to you – however long it may take. You need someone with the heart of a teacher, not the heart of a salesperson. You want to make the right decision for yourself and your families. You can only do that after you truly understand the options available.

Members: Sign in now to set up your Personalized Posts & start sharing today!

Not a Member Yet? Click Here to learn more about KCM’s newest feature, Personalized Posts.

1 reply

Trackbacks & Pingbacks

  1. […] is finding this task so perplexing.  Take for example, the contrasting opinions shared about the  Charleston, SC housing […]

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *