It’s reassuring to be able to ask a question + get an answer from a trusted pro.
We recently asked you to send us your questions about the local real estate market — and now we have answers, thanks to the experts at Coldwell Banker King.
Q: Is there any way to make nice homes in Asheville affordable (less than $300k) for locals hoping to buy?
A: This is an excellent question and one we hear often. It’s no secret that inventory is low and competition is high, especially for move-in ready houses under $300,000. There are a number of reasons that costs are higher than expected this year: soaring lumber prices, low interest rates on mortgages, and an unusually high number of people moving into the area, to name a few. Unfortunately, it is likely we will continue to see high prices for quite some time.
The good news is that the Asheville area now has the attention of a few national builders that have large contracts with suppliers, keeping building costs low. For example, national builder D.R. Horton has several new home communities around the Asheville area — with pricing starting in the $200,000s — for high-quality, spacious homes with elevated amenities. Interested? CB King agents can tell you more.
Q: Do undeveloped lots in home communities increase in value?
A: Right now, yes. Undeveloped lots are increasing in value due to current market conditions and lack of inventory. Undeveloped lots provide buyers multiple development opportunities based on their needs and wants. As always, it’s important to have a relationship with a local Realtor who can keep you informed about pricing, market trends, and other data that can help determine value and if buying undeveloped lots or land is right for you.
Q: Has the postponement of evictions and foreclosures contributed to market cost increases?
A: It is difficult to say concretely that there is a direct correlation here, as there are many factors contributing to the high prices we’re seeing. While low inventory coupled with high demand is certainly a key factor (and lifting the mandates would certainly create some inventory), there is no guarantee that it would be enough inventory to lead to decreased market values.
Q: How long before there are enough houses available (selling or buying) that the demand becomes more balanced? Will prices then go back down, or keep escalating from here on because of the projected population increase?
A: Current home prices are reflective of a decrease in inventory within our local market coupled with high buyer demand. Unfortunately, we do not know the timeframe in which our market will balance. As for pricing, we hope to see some stabilization sooner than later. A balanced market with stable prices leads to a strong local economy and more opportunities for all of our community members, and we look forward to that time.
Q: Are closing costs negotiable and/or a must-have?
A: Closing costs are always required when purchasing real estate. Typically (and especially in our current market), these costs are paid by the buyer. The exact amount varies depending on a number of factors, but is typically ~2% of the purchase price amount, and less for cash-only transactions. However, closing costs can be negotiated into a sale by asking the sellers to pay them in full, split the cost, etc. Everything is negotiable in real estate, which is why it’s important to have an agent that is a strong negotiator on your side.
Learn more about Coldwell Banker King + how they can help you buy or sell your AVL-area home. Ⓟ
