Selling my home now
To me its a sacred cow
Want so much no one’s looking at mine
It’s a real beauty
A Tuscany cutey
Can’t figure out why it’s still hasn’t sold
It’s wasting away again in inventory-ville
Waiting for that buyer to come by my home
Some people claim that the lenders are to blame
But I know….it could be REALTORS fault….
Recently nationally known real estate trainer, Jeff Elias, was in Phoenix for a training class. He spoke extensively about the national market and why REALTORS are grossly failing their clients. His point was this. Conventional wisdom in the real estate industry says that if a home isn’t selling, then it has to be price, all other things being equal. So what do REALTORS do? We keep lowering the price until showings spike and then we know the price is at a point where the free market will bring a buyer. This impacts our market negatively by driving down prices, which hurts everyone. Jeff says that this may be the least desireable method of getting the house sold for both buyer and seller. So what’s a seller to do? Buyers are looking for terms and sellers are looking for price. One strategy is for sellers to offer better terms to the prospective buyer such as buying the rate down for a buyer as opposed to lowering the price. For instance, a $5000 price drop will only lower a buyer’s payment, at current rates, by approximately $30. That same $5000 could buy the rate down for a buyer 1 – 2 points, depending on the loan program. This would create an interest rate of 4% – 5%. This impacts the buyer more positively than a simple price reduction saving them potentially $100 per month or more. So what makes more sense for the buyer, a lower price or lower payment? What makes more sense for the seller, a higher sales price or a lower sales price? The net cost for the seller is the same and the buyer gets a more manageable payment. The market shows a higher sales price, and let’s call it what it is, the REALTOR makes a few bucks more. Now that’s a win-win!
If you are looking to sell your home, this is well worth considering! Your home is more appealing to a buyer when they can reduce their payment by more dollars than a minimal price reduction. It’s time for REALTORS to get with the program and start to think outside of the box and do a better job of representing their clients.
At My Arizona Home Team, we are always exploring unconventional ways of helping our clients accomplish the same thing without giving up more than they would under more conventional means. There are many creative ways to sell a home. Call us! We have ideas! In the words of the old Smith-Barney commercial with John Housman, “we make our money the old fashioned way…we EARN it!”
Oh yeah, there’s a new Margaritaville opening in Glendale. Fun place, good food and drink. Check it out!