With inventory as low as it is today, finding market value isn’t rocket science. Home buyers in the Phoenix area are sifting through far fewer properties today than in years past to find their dream home. For this reason, homes priced correctly are selling faster and for more money than those that were overpriced from day one! The first 14 days on market are critical. Work with your REALTOR® and come to market with a plan. Know the comps, and don’t get too attached to a number. Remember, price and condition sells homes in todays’ market.
Leverage is Key
Just like your mother-in-law, life is MUCH easier when you have leverage on your side. In today’s market, the first 14 days will bring the most showing activity on your home. The goal should be to get multiple offers during this period. In doing so, you now have leverage on your side! We love saying “We have multiple offers and our sellers will be picking one on Monday at noon. Have your clients put their best offer on the table.” If the frenzy subsides and you find yourself beyond 30 days on market, you might as well be the iPhone 4S. It’s still salvageable, but a price reduction is usually in order. The risk of underselling your home is negligible given todays’ inventory problem.
Subtleties Have No Value In The Eyes Of Buyers
Pay attention to the comps that have sold in the past 6 months in your neighborhood and be realistic about how your home compares in terms of features and condition. Sentimental value has no place at the bargaining table, so don’t let it cloud your judgement when it comes to pricing your home. A good agent will give an accurate estimate of your homes value. A better agent won't allow you to list $20k more than market value.
Lowball Magnet: Crappy Carpets & Spotty Paint
When you have a hot new start up idea, attracting investors is a great thing! When you’re selling your home, probs not. If your carpets are beat to hell and your paint could use a fresh coat, get it done. It doesn’t matter if the new owners are just going to rip out the carpet you JUST installed, it’s all about presentation. Buyers, especially first time buyers, like walking into a home and smelling that sweet chemical aroma of new beige carpet and still drying white paint. It’s not unusual for buyers to discount their offer $15k for a paint and carpet job that would otherwise cost you $5k.
Three Blind Mice
If you hire 3 independent appraisers to value your home without having an accepted offer, you will receive 3 different opinions of value. These estimates should be fairly close (+/- 2%), but when you have a willing seller and a willing buyer, the number tends to gravitate towards that figure. Appraisers make a living valuing homes and they’re usually pretty close, but don’t freak out if your home sells for more or less than the appraised value. Remember, you can set the price, but the MARKET determines the value.
The market doesn’t lie and not listening to what it is telling you will cost you thousands of dollars in the end. So if you’re not going listen to your REALTOR®, at least listen to the market. If you have questions about selling your home in the Phoenix area this year, we’re here to help! Email us or give us a call at 480.207.8872.