Market Puts Home Seller in Control – When Using Good Tactics
Many homeowners looking to sell Scottsdale real estate, once again find themselves in the driver’s seat. Buyers outnumber available homes for sale in Scottsdale, Arizona, meaning that more sellers are getting list price — or above — on their homes, selling quickly and sometimes encountering multiple bids. Don’t think, however, that the bubble is back. Buyers are optimistically cautious — as are mortgage lenders — but prices are not going through the roof.
True: The days of local sellers competing for buyers with expensive incentives and serial price reductions, offering to pay closing costs, desperately throwing in extra sweeteners are days gone by in Scottsdale. Yet serious buyers are out looking for homes to purchase right now, not just tire kicking. Today’s buyers know exactly what they can afford, arrange financing early on and comparison shop to spot value like a laser. As a result, buyers are acting fast, making offers quickly and offering attractive bids on suitable, move-in ready properties.
Home sellers still can’t pull the wool over buyers’ eyes today. Smart buyers are prepared — and savvy — about homes, our local Scottsdale real estate market and the economy. Not only is it a great time to be a buyer, it’s also a great time to be a seller. Here’s how to use a seller’s market to your advantage.
When it’s time to sell your home, avoid the temptation to set your price as high as possible. Keep in mind, your asking price is only a marketing tool. The true value of your home is a balance between what a buyer today will pay, what is acceptable to you — with appropriate terms — and the ultimate appraised value. Setting the optimum “balanced” price requires more than just looking at recent sales of nearby properties. Home values can change daily, according to local economic events, interest rate changes and real estate market activity. As real estate professionals, we can help you construct the best listing price for your home because we keep a close eye on today’s market.
Next, we make price adjustments according to local market trends. How much have homes in the area appreciated over the last three to six months? Knowing this trend for properties like yours allows us to price ahead of the market. As home values rise, we may suggest that you price your home somewhat higher than the last few comparable sales to match the increased number of buyers in the market today. However, this approach is not appropriate in every situation.
Just because the market is improving doesn’t mean you won’t want to out-market other sellers with some incentives to get your home sold first. If you have something special to offer — such as window coverings, an outdoor playground, garden equipment — that you’d rather not move with, offer it in negotiations to trade for another point, such as price. We can work with you to help you determine what will get your home sold and what negotiation tools we’ll need to employ. At the same time if you have something like a chandlier that you absolutely will not leave behind under any circumstantes, remove it before you market the home. Don’t let this become contentious during the negotiation process, you’ll wind up getting better results.
The Inside Scoop
In today’s changing market, it’s not possible for homeowners to track sales prices in an area with algorithm-driven public-data websites that use information 12 to 18 months or more after the fact. It’s difficult for homeowners to get very recent sales information, to know exactly what amenities each sold home had and to learn what — if any — kinds of subsidies sellers provided in their contracts with buyers. That’s why we make it our business to have the latest local information. We know in real time what area sellers are doing now to get their homes sold. Your asking price must take all these factors into account.better.
Give us a call for an informed, professional analysis of what your home can sell for in today’s market.
Six Reasons Overpricing Does Not Pay For Today’s Home Sellers
Even if you’re in a seller’s market, it doesn’t mean any price will fly with buyers. Keep these tips in mind as you think about the price you set when listing your home for sale.
- Most listing activity comes within the first 45 days a home is on the market. Overpricing means you’ll likely miss that activity by discouraging qualified buyers who’ve seen similar homes for less.
- A too-high price eliminates a whole class of buyers. Many buyers know just how high they can go and don’t even look at homes priced above their price ceiling. A fair market price is the “best price”.
- Overpricing helps sell other, more competitively priced homes first. Your home and listing price make them look better.
- You waste time and suffer added weeks or months of stress as your overpriced home languishes on the market, preventing you from moving on to your next home.
- Your home may eventually be seen as “stale inventory,” suggesting structural or mechanical shortcomings (though none may exist), even after you’ve lowered your price. A further price reduction, below true market value, may be needed to sell your home.
If you do get an offer, the contract may fall through because the appraisal by your buyer’s lender comes in too low. The buyer may not be able to borrow enough, or come up with enough cash, to proceed with closing.
When you need help, we’re as close as a phone call at 480-363-7944, or email.