Real estate agents find creative sales tactics

Renee Reinert Pote of Daniel Island-based Iron Gate Realty has seen the highs and lows of the real estate market during her 16 year career. In 2007, the combination of rising home prices, loose lending practices, and an increase in subprime mortgages created a perfect storm, resulting in a housing market crash. A quiet, dormant state with a long recovery ensued for several years.

 

Pote said, “Then, out of nowhere, the market became very hot. Buyers were buying and sellers were selling and it was steady. Then COVID became real. Our real estate practice changed overnight with procedure but not with sales. Sales continued through the roof.”  

 

COVID brought changes that no one could predict. Iron Gate Realty has seen one of its biggest years ever, with many people moving to the area from California, New Jersey and New York.

 

“All of the sudden we had buyers fleeing areas that were no longer appealing due to COVID restrictions and economic changes as a result of COVID,” remarked Pote. “Charleston has always been a highly desirable destination and now we were the number one choice for relocation. Many people were paying cash even though interest rates continue to remain at an all-time low.” 

 

High prices were accepted by buyers because of a lack of inventory and a desire for sellers to test the market. Today, Pote believes that buyers are beginning to wait for homes that are priced for today’s market. They are still higher than last year and the current market is strong, but with limits. Inventory is slowly increasing. 

 

Pote’s prediction: “…I do not think prices will come back down. I believe they will come to a slower steady climb than they have been for the past two years.”

 

On Daniel Island, the pricing bar is being established now 

 

“I would describe the current market as ‘blooming,’ like a wild flower that keeps growing and growing. My prediction is that we will continue to see an increase in sales prices especially in sought after markets like Daniel Island and for properties that are in high demand, such as properties that are renovated, have views, water access and pools,” noted Tricia Peterson, owner of Island House Real Estate.

 

Peterson said that while all markets ebb and flow, the prices for Daniel Island and the Charleston area are being established now. “The days of finding homes at prices we saw a few years ago are long gone,” she noted. 

 

On Daniel Island, the most in-demand price point is under $1.5 million.   

 

The buyers’ demographic consists of a mixture of local residents that are taking advantage of the equity they have grown in their homes here, as well as people moving from out of state. 

 

“We always had a large northern migration to Charleston but this year more than ever, we are seeing more from California and the Midwest. We have seen a fair amount of retirees moving to be closer to their families but the majority of people are young professionals and families. Lifestyle is the number one priority and that includes amenities such as walking/running trails and water access,” advised Peterson.

 

The amenities and the convenience of easy access to downtown and the airport are putting Daniel Island on the map for young professionals too, according to Peterson. She believes that the influx of this demographic is encouraging the surge of the multifamily developments nearby.  

 

In a tight and fast-paced market, creativity is key. “Each property is different and we hone in on the unique strengths of the property and what sets it apart. Even though houses are selling at record speeds, we have not stopped doing high quality photography and marketing for our sellers.”

 

Turn-key properties are a seller’s dream

 

Broker Ashley Severance of Atlantic Properties believes that the demand for housing on Daniel Island will hold strong. 

 

“The scenery, amenities and people make [Daniel Island] special and unique. In 2021, we have seen unprecedented sales, all time low inventory, high absorption rates, and bidding wars, especially for homes that are turn-key. It’s been a seller’s dream and a buyer’s nightmare. However, in the last couple months, mortgage applications and pending home sales are decreasing a little which seem to signal some leveling.”

 

She continued, “It seems the recent Daniel Island buyers are mostly coming from other states seeking a better lifestyle. Many are families from larger cities wanting the Lowcountry life and others are empty nesters seeking more of an ‘adult camp’ like community.”

 

Severance’s advice to sellers is to invest in preparing the home for the best possible sale. “Take the time to put your best foot forward,” she advised. “The typical buyer purchasing in Daniel Island doesn’t want to do a lot of work. A fresh coat of paint and decluttering can go a long way. Consider a pre-inspection and take care of items that could prevent a buyer from wanting your home. Pricing a home in this market is tricky. Don’t price higher than value to get lucky, but price to sell property.”  

 

Townhomes with a downstairs master are in high demand, noted Severance, and any property with a view is desirable. 

 

Hire an agent who knows the market

 

Working with a professional who can act quickly on behalf of their client and an expert to help their seller price the property correctly is the best way to succeed in this market.

 

“Knowing how to price your home, staging and marketing it, handling multiple offers, and working through repairs, can be challenging, so work with a Realtor who is experienced and knowledgeable,” commented Rosie Stieby of Daniel Island Real Estate.

 

The market can change daily. Some properties are receiving multiple offers the first day on the market. Stieby said that some properties don’t even make it to MLS before going under contract. Social media can be instrumental in getting the word out quickly. 

 

“One challenge,” noted Stieby, “is getting buyers to understand how quickly our market is moving and to keep their spirits up if they lose out on a multiple offer situation. Another challenge is making sure not to over price a listing as we are seeing some aggressively priced homes sit a little longer.”

 

On Daniel Island, buyers are requesting home offices as an important feature. Pools or room for a pool are on many wish lists. “Folks want a neighborhood where they can recreate and enjoy the outdoors, so parks and bike/walking paths are important,” she said.   

 

Stieby advises buyers to stay patient and positive, and be prepared when the right house comes along. “Make sure you have your pre-qualification letter or proof of funds letter. The fewer the contingencies, the better your offer looks to the seller. While cash offers get more attention, there are other ways to make a strong offer over other buyers.”  

 

Plan ahead and maximize value

 

Inventory is especially limited in neighborhoods such as Daniel Island, Kiawah, and some areas of Mount Pleasant. “Things will probably stay pretty tight through this area but I expect some areas such as Daniel Island might loosen up in the beginning of 2022 with the opening of new lots on Fish Camp Island,” advised Michelle Walsh from Charlestowne Realty Group.

 

As a Realtor, Walsh said, “I can tell you the most important thing is just sitting down and talking to people as early as possible. I keep open channels of communication with my clients. I sit down with them and I really just listen to learn their goals. No one who decides to buy a home or sell their home is simply looking to make a transaction. What they want is to be successful in their home sale and gain value in their home purchase. The best way to do that is by early planning.”

 

For sellers, it’s a good time to maximize the value of their homes. “Take a look around your home and notice the investments you can make to improve the home. Are your kitchens and baths outdated, does your home need a paint job? The good thing about investing in your home right now is you will most certainly get it back.

However the big challenge is finding contractors that can fit you into their schedule.”

 

Buyers, beware. “It’s a very hot market, so my first advice would be make sure you’re not paying too much in case there’s a correction down the road.” Walsh also recommended that buyers research the builder of the home and track the record of build quality to avoid future issues.