Although Charleston is overall the strongest sellers’ market we’ve probably seen in the history of our MLS, the individual Johns Island real estate market can be a tougher market for sellers. Right now, almost 70% of homes selling on Johns Island are new construction. This area has become a go-to suburb for buyers wanting newer homes priced especially under $500K within Charleston County since markets like James Island and Mount Pleasant have become so much more expensive. (Where else in the county can a buyer get a brand new house for under $270K?!)
The large selection of new construction homes on Johns Island is great for buyers, but it creates a tougher position for sellers of pre-owned homes to compete. Builders generally offer incentives ranging from thousands of dollars in “free” (included) upgrades to thousands of dollars in paid closing costs. This means that buyers can get an affordable home with all the upgrades, finishes, and colors they want and also come out of pocket at closing for $5,000 to $10,000 less than what they’d pay for existing homes.
How do regular sellers compete with these builders? Here on our blog, we’ve written extensively about how to get your home ready for selling, so I don’t want to belabor how important it is to get your home looking its best.
A more creative way to help market your home is to offer lender paid closing costs. For example, our in house lender has a Preferred Lender Credit Program where buyers can get free closings paid without having any money coming out of the sellers’ pocket. Sellers can choose to add to this amount (and we’d recommend doing this to make the offer more appealing to buyers). However, it’s not necessary.
The second benefit of using a program like this is that the seller and listing agent get peace of mind when the buyer works with a trusted, reputable lender. Right now when you look at the reasons that homes fall out of contract, 36% of these cases are due to buyers’ financing issues. Instead of relying on a bank you’ve never heard of (or worse – a bank that notoriously leaves buyers high and dry the week of closing), it’s almost always better to work with a lender that your listing agent trusts. The lender’s experience and good reputation of taking contracts to closing are essential in any market.
With these two great benefits, why not use a Preferred Lender Credit Program to help sell your home – especially when it’s free?
Considering Selling Your Home in Charleston?