A TALE OF TWO HOMES -Recently an agent in my office related a personal home selling experience of her own. Earlier this summer, this Realtor had her own home to sell in the Southwest Phoenix valley. It turns out that a neighbor with the same model home a few doors down the street was also selling.
The Realtor determined the market price for her home to be $324,000. She listing her home at $319,000 and sold it in 34 days for $309,000.
Her neighbor initially listed her home for $332,000. It stayed on the market month after month as she stair-stepped the price down in $5,000-$8,000 increments.
The neighbor's house finally sold for $287,000 after over 200 days on the market.
What is the lesson here?
Trying to follow the market down in small increments will NOT attact the buyer traffic you need to sell a home. Making the home a "good deal" price wise (hopefully at the outset of the listing) will attract what buyers there are and get you into meaningful negotiations resulting in a much quicker sale.
I have seen this happen time and again with my own listings in this market. Using this approach will get you more money for your home faster than the stair-step approach to pricing.
Richard
Thursday, October 25, 2007
Monday, October 08, 2007
The Real Estate Picture
Well, we continue to get less than favorable news from the real estate market. New and resale sales are down nationally and things are pretty slow in the Phoenix market as well (see the news posts on the right hand side).
Developers are still offering big discounts. That may be changing in the not too distant future (see the earlier post "Light at the End of the Real Estate Tunnel?").
Yet, local Realtors are seeing more people show up at open houses. Phoenix is its own market and always has been. We still have a positive 100,000 people moving to Arizona every year. That is a big plus that not all states share. Population projections out to 2050 show the overall population increasing by a factor of 4 times.
Local Real Estate analyist R.L. Brown has a little optimism in his September report - the first in over four months. I'll keep you posted.
Developers are still offering big discounts. That may be changing in the not too distant future (see the earlier post "Light at the End of the Real Estate Tunnel?").
Yet, local Realtors are seeing more people show up at open houses. Phoenix is its own market and always has been. We still have a positive 100,000 people moving to Arizona every year. That is a big plus that not all states share. Population projections out to 2050 show the overall population increasing by a factor of 4 times.
Local Real Estate analyist R.L. Brown has a little optimism in his September report - the first in over four months. I'll keep you posted.
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