The Price is Right?

You only get one chance to get it right, or you will continually be behind the market and trying to catch up. The reasons homes do not sell are price, condition, and marketing in that order, or a combination of the three. Local experts estimate that 80% of the current listings are overpriced. According to real estate site RISMedia.com “even in a buyer’s market…if a home hasn’t sold in the first 21 days, the seller has lost their honeymoon period.”“As a rule of thumb, if after the first 21 days the seller [has] had a lot showings, but no offers, the price is probably within 5% of market [value]. But, if after 21 days, there are very few, or no lookers, the price is likely at least 10% over market [value] or more. Most buyers are willing to offer 5% under the asking price and not be afraid of offending the seller, but very few will offer 10%, or more, under the asking price. The buyers, and/[or] their agents, will simply refuse to even look at a property that is 10% or more overpriced.”

“In a buyer’s market the seller has to price their home at tomorrow’s price, not yesterday’s. If prices are falling 5% a year, then a $500,000 property today will be worth $498,000 next month and by the end of a typical escrow, $495,000.”

Picture the home as a stock. Last year you paid $50 per share. Today it is worth $35 per share. The market doesn’t care what you paid, what you want, or what you need, the open market will only pay $35 per share regardless of any other factors or considerations.

Pricing your home is part art and part science. Tracking market movements is imperative to determine value. We compare similar properties that have sold, expired, and cancelled and rarely do current listings affect the true value of your property. In today’s market we are seeing a large number of short sales and foreclosures that are greatly reduced. This also has a large impact on the value of your property and is also your direct competition.

For an in-depth, personal analysis of your home, please contact Arizona Experience Realty and be sure to visit our website at www.ArizonaExperienceRealty.com.